Are you thinking about purchasing a secondhand car? Or perhaps, are you thinking of starting a car rental or dealership of your own? You’re in luck because the opportunities for repo cars are expansive. When looking for repossessed automobiles for sale, remember that there are advantages and disadvantages. Prior to investing in another car, weigh the benefits and drawbacks of purchasing a repossessed vehicle. Today, we’ll drive around the details about purchasing repossessed cars in the Philippines and how you can get the best deals!
What is a Repossessed Car?
Repossessed cars are those that were repurchased by financial institutions from customers who have fallen behind on the repayments of their loans. In these cases, someone else’s loss might be your gain, so we put up a simple guide to help you figure out repossessed automobiles and what you ought to look for when purchasing them.
Pros and Cons of Buying Repossessed Cars
Pros
- Great Price Deals
When you do your research, you are more likely to find amazing automobiles at low pricing. So do your homework on the market worth of the brand and model you want and compare used vehicle costs thoroughly.
- Trustworthy Transactions
Since you’re working with a respectable financial organization, purchasing a repossessed car from a bank ensures an authorized and legally sound transaction. When seeking to purchase a used automobile from an unknown seller, you may come across a scammer. Some of the banks that offer sales for repossessed cars include…
- Premium Condition
Repo automobiles are put up for sale not because they are in bad shape but because the previous owners were unable to make their loan payments. As a result, you’re more likely to come across bank-repossessed vehicles that are only a few years old and have minimal mileage. Repossessed autos, unlike privately marketed secondhand cars, have a lower likelihood of being likely to have previously been damaged in an accident, crime, or flood.
- Flexible Financing Options
A repossessed car transactions require less paperwork than a new car purchase. Financial institutions just want to sell their repo units right away. A complete cash payment entails no interest payments; however, a vehicle loan is less expensive due to the monthly installments made prior to repossession.
Cons
- Bidding Challenges
Financial institutions can decline your bid if it is less than the floor price, which is the bare minimum established by banks for each repo automobile for sale. The entire purchasing procedure requires a lot of effort. Expect a flood of offers for repossessed vehicles from multiple banks.
- General Cleaning Requirements
Since financial institutions store repossessed automobiles in massive storage facilities, these vehicles accumulate heavy layers of dust and filth over the course of time.
- Test-Drive Unavailability
Another drawback to consider when weighing the pros and disadvantages of obtaining a repossessed vehicle is the inability to experience driving the vehicle before purchasing it. You won’t be able to identify any flaws until after you start driving the automobile.
Where to Buy a Repossessed Car in the Philippines
Banks
You may also buy through banks and financial institutions. Typically, these institutions will provide an inventory of available automobiles on their website, and you may contact them to schedule a viewing and test drive.
Auctions
These public auctions are often hosted by banks or other financial entities. To participate in the bidding, you must make a deposit after registration. The autos are then auctioned off to the highest bidder.
E-Commerce Platforms
Another alternative is to purchase a repossessed vehicle from an internet marketplace. Shoppable Business, an eCommerce platform where you can purchase various services and things, including automobile accessories, is one example. While making a purchase, make sure to verify the vendor’s rating and read testimonials.
Car Dealerships
Repo automobiles are sold by several car dealerships in the Philippines. Typically, these dealerships will offer a range of vehicles accessible for viewing and test drives.
Some Online Platforms Who Sell Repossessed Cars
Automart.PH
In this case, the business has worked with six (and counting) banks to display thousands upon thousands of automobiles on its online site. You may now visually peruse the units and see if any pique your interest right from your phone! Best of all, Automart.PH won’t add anything to the buying price, not even a single centavo! Instead, it will charge a tiny fee to the vendor for each product sold.
AutoDeal
Thousands of consumers have used AutoDeal to get the greatest deal on automobiles, motorbikes, and a variety of automotive items and services. They have been pioneering new ways for prospective customers to interact with auto and motorbike businesses in order to acquire quick and reliable information since January 2014. They are making the process of choosing a new car more convenient, less stressful, safer, and ultimately more pleasant using ways such as their Test-Drive scheduling tool.
Philkotse
Philkotse.com is a prominent automotive classified advertisements website in the Philippines, offering new and used automobiles for sale. Philkotse’s platform includes a comprehensive database that strives to give individuals up-to-date information on new car pricing, features, unique promotions, and more in the Philippine automotive sector. It also includes a comprehensive listing of used vehicles for sale in the Philippines.
Steps on Buying a Repossessed Car in the Philippines
Step 1
Select which automobile to buy. Browse the bank’s website for available repossessed automobiles on its used car list. You may also visit the showroom to do a personal examination.
Step 2
Make a bid or an offer. Some banks will publish the opening bid and buy-now price of a repossessed vehicle. Depending on your budget, you can either bid or buy the automobile right away.
Step 3
If you decide to buy right away, make an offer to the bank by providing the required papers and documentation. If you decide to bid, you must wait for the outcome of the auction. The bank will tell you whether you have the winning offer, generally three days following the bidding deadline.
Step 4
Pay for the unit outright or with a vehicle loan, whichever is your preferred payment method. While your automobile purchase is being processed, you may be required to pay a reservation charge. So, before you go automobile shopping, be pre-approved for a loan.
Step 5
You may now drive home with your repo automobile after fulfilling all of the conditions and executing a successful transaction!
You can determine if buying a repossessed automobile in the Philippines is right for you now that you understand the benefits and drawbacks. If you decide to browse for repo automobiles, plan ahead of time so that you can get a vehicle of outstanding quality at the lowest feasible price. As with any large purchase, do your research, create a shortlist, and give it some thought before making a selection!
To summarize, purchasing a repo automobile might be an excellent option for conserving costs on a used car in the Philippines. Simply make sure to properly check the vehicle before purchasing it, figure in any additional expenses, and weigh the advantages and downsides before making a decision. You’ll be well on your way to obtaining a fantastic price on a repo automobile in the Philippines if you keep these suggestions in mind.
