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Buying a repossessed car is not the first choice of many Filipinos because of the stigma it carries.
Was the vehicle properly maintained by its previous owner? Why was the vehicle repossessed in the first place?
However, savvy people know how much of a good deal this is.
The thought of spending hundreds of thousands or millions of pesos to purchase a new car isn’t always great, especially because its value depreciates heavily each year. In many instances, buying a repossessed car is the wise thing to do.
Whether you have a tight budget, or you want to get a new car model for a lesser price, knowing where and how to buy repossessed vehicles in the Philippines is important.
In this article, we will share our two cents about getting a repossessed car, and we will also let you in on how to do this.
What are Repossessed Cars?
Repossessed cars are vehicles whose owners have failed to repay their loans (auto or collateral loans), or have defaulted on their payments. This works similar to a foreclosed home.
Because of the high number of vehicles that are repossessed, banks have already set up a process to sell them to the highest bidder by auctioning them off. The main goal of these institutions is to get rid of the risks of holding yet-to-pay vehicles.
Repossessed vehicles are usually sold as-is, or in other words, the buyer must take responsibility for these vehicles in their current state.
Pros & Cons of Buying Repossessed Vehicles in the Philippines
Wondering whether or not repossessed cars are for you? There are many reasons why you should buy these cars, and there are also some reasons why you should think twice about it.
Let’s look at the good and bad sides of buying a repossessed car below.
Pros
Huge savings
So many people dream of getting their hands on brand new cars but can’t afford to buy them due to their high price tags.
But if you can get your hands on a brand new car model that’s been repossessed by the bank, you can save up a lot of money.
Depending on the bank, you can get up to a 40% discount off the original price of a repossessed car. This is because banks are often willing to give a good deal.
After all, they want to get rid of the responsibilities that come with these cars.
Trustworthy sellers
Repossessed cars are sold by reputable banks. These are government-regulated entities so there’s no worry when purchasing cars from them.
This is safer compared to buying from private sellers.
Tons of payment options
Whether you can pay for it in cash, or you want to take out a loan, you can get your hands on a repossessed car by any means.
Cars are still in good condition
Most repossessed cars are still in good condition and have a low mileage number.
Because of this, you can surely drive these cars for several years to come before you have to worry about replacing them. These cars are just like new ones, minus the huge price tag.
Cons
Finding the right car takes effort
Because of the huge number of repossessed cars, you have to sort through many of them just to find the right one that’s right for you.
It is a time-consuming process so you have to be patient with it. Moreover, you need to have a strategy to win the bidding.
Doing a test drive may not be possible
Repossessed cars are often sold in their current state, so you may not be able to test drive them. You just have to get it as-is and hope for the best.
This is because if test drives are allowed, the car’s mileage will go higher, which can further decrease its value.
Considering this, you may not know the specific problems of the car until you start to use it. This can be a hassle especially if you end up getting a car that has a lot of issues.
Cars need to be cleaned
As they were used by their previous owners, these cars will show signs of wear and tear. Moreover, these cars are also housed in a warehouse for some time where they may have accumulated dirt.
You will have to do some cleaning if you want it to reach its optimum condition. This can be a time-consuming, laborious, and expensive process.
Car’s condition may be poor
There are instances where repossessed cars are sold in a non-running condition. Therefore, you have to do some work to get the car road-ready.
You need to undergo a bidding process
Repossessed cars are usually sold by bidding. This can be stressful as you are competing with other bidders, and the price will go up depending on how much the bidders want the car for.
The bidding process can also be tedious so you have to set aside time for it.
Where to Buy Repossessed Cars in the Philippines [Complete List]
If you are interested in buying a repossessed car, check out the list of repossessed car sellers below.
Autodeal.ph Repossessed Cars
Every month, thousands of Filipinos turn to Autodeal Repossessed cars to find the best deals on automotive products.
This company has been connecting prospective buyers with motor and car dealerships since 2014. They also offer test-drive scheduling to make your quest of finding your next vehicle more convenient and stress-free. If you want to try Autodeal’s service, sign up here.
Contact details:
- info@autodeal.com.ph
BDO Vehicles For Sale
BDO is one of the largest banks in the Philippines so it comes as no surprise that they have a huge number of second-hand cars for sale.
Contact details:
- (+632) 8631-8000
- Email: callcenter@bdo.com.ph
BPI Buena Mano Auto Sale
The repossessed cars of BPI are handled by Buena Mano. To make your search easier, the cars are organized per location. Before you can bid for a car, sign up here.
Contact details:
- +63 (2) 8580-3158
- +63 (927) 133-6086
- +63 (2) 8580-3126
- Email: Buenamano@bpi.com.ph
Security Bank Used Cars For Sale
Security Bank makes owning a repossessed car easy and accessible for its customers. You can bid on 5 cars at most using just one form.
The cut-off for offers is every Sunday and results are announced three banking days after the cut-off.
Contact details:
- +632 8887-9188
- 1-800-1-888-1250
- email: ROPAautosales@securitybank.com.ph
EastWest Bank Pre-Owned Cars For Sale
EastWest Bank also has pre-owned cars for sale. You can check the auction list here, and the price tag list here.
Contact details:
- 0998-8462551
- 0999-8857507
- ROPASales@eastwestbanker.com
Metrobank Vehicles For Sale
Metrobank also has various cars available for purchase. To make your search easier, filter the brand of the vehicle you want and click search.
You can also narrow down your search by price and location.
Contact details:
- (02) 88-700-700
- 1 800 1888 5775
PSBank Pre-Owned Cars For Sale
To bid for a PSBank repossessed car, download their bid form and auto loan application form (if applicable). Then, make an offer.
PS Bank’s repossessed cars can also be filtered by selling price, model, brand, mileage, and location. Most units are available for viewing from Monday to Saturday 8:00 AM to 4:30 PM.
Contact details:
- (02) 8815-9709
- (0961) 275-2320
RCBC Cars For Sale
RCBC also has a post-auction car sale. Bidding is not necessary if only one person is making an offer on a unit.
Contact details:
- 1-800-10000-7222
Maybank Cars For Sale
Maybank organizes their repossessed cars per city. This makes it easier for you to sort through their available repossessed cars easily.
Contact details:
- (02) 8588 3761
- (02) 7739 1653
- (02) 8588 3859
- email: mpi@customerservice@maybank.com
Sterling Bank Used Cars For Sale
Sterling Bank has a wide array of cars for sale. These cars can be filtered by warehouse, brand, price, and year manufactured.
Contact details:
- (+632) 8721-6000
- (+632) 8672-6300
Unionbank Foreclosed Vehicles
Unionbank offers a wide array of cars on its roster. Based on the pictures, most cars are in good condition but may need cleaning due to warehouse storage.
Contact details:
- (+632) 8841-8600
- 1-800-1888-2277
Robinsons Bank Repossessed Cars
Another institution that offers repossessed second-hand cars in the Philippines is Robinson’s Bank. Their list of cars doesn’t include a picture so make sure to inquire first before bidding.
Contact details:
- (+632) 8637-CARE (2273)
- 1-800-10-8637-CARE (2273)
- Email: C3@robinsonsbank.com.ph
How to Buy Repossessed Cars in the Philippines [Steps]
Wondering how to buy a repossessed car in the Philippines? Here’s how it’s done.
Step 1: Select an institution/bank that sells repossessed cars
Based on the list above, choose a bank or institution that sells repossessed vehicles. You can browse their list of vehicles on their website and get updates on their ongoing auctions.
Step 2: Choose a car model
Now is the time to do some research. Browse the website of the bank of your choice and view the different repossessed car models that they sell.
Assess the pictures and decide which car you want. Take into consideration the model, brand, year manufactured, and mileage of the car.
Step 3: Inspect the car in person
If possible, don’t bid for a car unless you’ve seen it in person. This way, you can get a clearer idea of the car’s condition and whether or not it’s worth your money.
If you don’t have time to inspect the car in person, ask for pictures to get a clearer view of the car’s condition.
Step 4: Make an offer
If you like what you’ve seen, it’s time to make an offer. This can be done through the bank’s website, or email.
When bidding for a repossessed car, do not lowball your offer since other people may easily outbid you.
Step 5: Pay for the car
After you’ve won the bid, you’ll have to pay for the car. You can choose to pay in cash, or you can take the repossessed car in monthly installments.
After paying for the car, the bank will release it to you.
Step 6: Your car is finally yours to enjoy
After you have paid for the car, the bank will give you the necessary documents to register the car in your name.
Depending on the bank, you might also have to pay other fees. After doing this, you can now drive off with your *new* repossessed car.
Related: Compete Guide to Car Registration & Renewal in the Philippines
Tips When Buying Repossessed Cars in The Philippines
To help you make the most of your money and find the best deal, here are some tips you have to follow when buying a repossessed car.
Be realistic
Do not set your expectations too high. Just be realistic with the car model that you want. Following this tip will prevent you from ending up disappointed.
Daydreaming about how much money you can save on a repossessed car is fine, but don’t get carried away because you can end up with a car that’s not worth your money.
The reality is many people take out an auto loan without the intention of paying for it in full. Because of this, they don’t take care of their car because they know it will eventually get repossessed.
Don’t rush
Rushing into buying a repossessed car can result in a bad decision. Take your time to inspect the car and decide what you want. This will prevent you from making a poor choice.
Check the specific details
When you check up on the car, make sure to inspect it yourself or ask for clear pictures to see if everything is in working order.
This way, you can get what you bid for and nothing less. Since many repossessed cars have been abandoned for a long time, you can expect some wear and tear.
Bring a mechanic if possible
If you have access to a mechanic, invite this professional to come with you to inspect the car. This way, you can get a better idea of the car’s condition and whether or not it’s worth your money.
Although you’re not allowed to test drive the car, a mechanic can help you assess the condition of the car based on how it looks.
Have a shortlist of cars
It can be overwhelming to search through a lot of cars to find the right one. It’s best to make a shortlist of the car models that you want based on the budget that you have.
After all, the chances of you winning your first repossessed car bid are not high. Following this tip will also help you find the right car much faster.
Assess your budget
You need to set aside a budget for the bidding process and potential service fees. Make sure that you plan for these expenses ahead.
Get all your requirements are in order
Before bidding for a car, all your requirements should be ready. This way, you will be able to bid for the car without any issues.
A lot of people fail in the bidding stage because they don’t have their requirements in order.
Plan your financing options
Whatever payment option you want to follow, you have to plan this out before bidding for a car. This way, the process will be seamless after you win the bidding.
Factor in maintenance and repairs
When buying a repossessed car, chances are, you need to spend money on repair and maintenance. Remember to factor in these expenses.
If you don’t have enough budget for this, then buying a repossessed car may not be a good option for you.
Review car insurance policies
After you win a bid for a repossessed car, you need to get it properly insured. You can get car insurance from the bank or a private insurance company.
Take your time to review the terms and conditions of the policy.
Related: How to Get (or Renew) an LTO Driver’s License
Ways to Make Money with your Car
Did you know that you can use your repossessed car to make more money? We’ve rounded up the best side hustles you can try using your repossessed car.
Carpooling
If you’re comfortable making other people ride in your car, then you can use it for carpooling. Start advertising your carpooling services online or simply tell your friends to hop in your car.
You can charge your passengers or ask for a token amount to cover your fuel expenses. This can be a great source of passive income.
Delivery service/errand service
If you have the space to transport items, then you can make use of your car and start an errand or delivery service.
You can charge by the weight of the items or you can make use of a minimum fee. Some of the items that you can deliver are food, letters, appliances, and documents.
Join a ride-hailing app
Many people rely on ride-hailing apps to get around. If you have a car, you can join a ride-hailing app such as Grab and Uber to earn some side cash.
You can either work full-time or part-time depending on the number of free hours that you have.
Related: LTO Franchise Violations [Complete List]
Rent it out
If you’re not planning on using your repossessed car as your main method of transportation, you can rent it out.
People may want to rent your car for weddings, proms, graduations, and other special occasions. You can also rent out your car for tours, and city driving.
Ads
Another way for you to make money with your repossessed car is by putting advertisements on it. You can directly approach brands and ask if they’re interested in purchasing ad space on your car.
Another easy way to do this is to register with GrabAds.
Tour trips
If you live in a scenic place or an area that gets a lot of tourists, then you can offer tour trips using your car. You can charge a small fee for each passenger.
Use it for a mobile food business
If you bought a truck, you can use it to set up a mobile food business. Although you’d have to spend for your facade, the potential revenue is worth it.
Sell it
After you’ve bought a repossessed car and taken care of all its required maintenance and repairs, you can sell it for a better price.
You can get a lot of money for your car depending on its condition and model.
Related: Profitable Side Hustles for More Extra Income
Repossessed Cars in the Philippines FAQs
The following are the most common questions regarding repossessed cars in the Philippines
A car gets repossessed after its owner failed to take care of its monthly payments. For example, if a person has a 36-month loan for a car and there’s a two-month delay in their payments, the bank may start its repossession process.
Usually, banks and other lenders give borrowers up to 90 days before the repossession process is fast-tracked. If monthly payments are not settled after 90 days, the bank or lender may put the vehicle up for auction.
After a vehicle is repossessed, it will be stored for safekeeping in warehouses. Some warehouses are better than others – with the vehicles kept in pristine condition by not exposing it to the sun or the rain. However, this cannot be said for all warehouses.
Banks and other lending institutions typically have warehouses in different parts of the Philippines where repossessed vehicles are stored.
Yes. There are many companies and banks that offer car financing for repossessed cars. You can simply take out a car loan or personal loan in the bank where you want to buy a repossessed car. Expect your payments to be lower compared to when you get an auto loan for a brand new car.
In most cases, yes. This is why you need to have a bidding strategy to ensure that you get the car that you want for a reasonable price.
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