Process Of Buying Second Hand Car In The Philippines

What are the required documents that need to be prepared when you getting a car? Should you go for a second-hand car or not? Scroll down to know!

1. Should I go for a second-hand car or not?

It depends, but we could say opt for a high-quality second-hand car never disappoints you.

A new shiny car appeals to any driver. However, there are still disadvantages to owning a brand new car, especially for a newbie.

Firstly, scratches are inevitable for beginners to drive. A car is a valuable possession, so if a scratch is on a used car, the driver will be less worried.

Another disadvantage is that new cars are more devalued than used ones. The value of a new car after one year of use tends to decrease by 20%. Experienced drivers always have plans for the car's future, but new owners will be quite worried when the value goes down.

Because the former owner pays a large depreciation of a car in the first years of use, those who buy a used car can save a great deal of money. Besides, old cars with simple systems make it easy to maintain yourself since new high-tech vehicles may require specialized tools for repair, even computers.

2. Process of buying a second-hand car in the Philippines

Whether buying a new or used car, you need to follow a process to complete the purchase with the seller. This process requires a lot of paperwork, so you should prepare it in advance. Below is a list of documents needed when buying a used car in the Philippines.

1. Payment documents

Depending on which types of payments you use, the payment documents may differ. Usually, these will be the following types of documents: Check from a pre-approved loan, cashier's check, check from the bank, and personal check.

As the buyer of a used car, you need to contact the seller to negotiate the price. In case you pay via bank, you need to present documents proving your financial ability to pay for the car. For cash payments, you do not need to prepare a bank check or similar papers. 

2. Driver's license

A driver's license is required if you are using the vehicle for mobility, and you are the driver. Usually, when you buy a used car, the seller is not too strict in asking for a driver's license. A driver's license is still often needed, however, to gain the trust of the seller.

If your purpose is to buy and resell it and you do not own a driver's license, you will need to prove your identity with other documents. In this case, you are likely to have to present utility bills such as electricity, water, or internet as additional documents to prove your identity to the seller.

3. Car insurance

Although the cost of insurance is quite high, insurance is a safe choice for yourself, for your car when there are future risks.

In case you are experienced in car buying, you can look to old insurance companies with which you can rest assured. If this is your first time owning a car, you need to carefully research the different types of car insurance also, the terms and price of each to choose the most reliable choice for your needs. 

>>> Related: What does TPL Insurance mean in the Philippines? TPL Insurance vs. Comprehensive Car Insurance

4. Car title

The car title is the first document that buyers should know because this document shows legal ownership. This document also has a similar function to the contract as it's related to the purchase of used vehicles.

At present, the dealer has more than one channel of information for selling the car. So if you know car sales information online, you should carefully check the seller's legitimacy and the documents.

The original car title copy should contain the following information:

• Final purchase date.
• Vehicle price in numbers and words.
• The number of kilometers the vehicle has run on the odometer.
• Signatory proof shows that buyer and seller agree to the car title terms, and a consensus on the status of the goods has been reached.
• Notarization for agreement.

Buyers should be careful of shady transactions as sellers only show photocopies of the car title and request payment. You should always make sure to get a notarized copy before making any transaction.

5. Deed of Sale

Deed of sale isn't always available to sellers, but you can always fill out free forms. The following information should be included in the Deed of Sale:

• Model
• Make
• Motor number
• Plate number
• Body type
• Vehicle identification number
• Official receipt number
• Car registration number
• Price
• Date of sale
• Personal information of both parties

>>> Also explore: What is OR/CR meaning? What to do when you lose your LTO OR/CR?

6. Registration Certificate

The Registration Certificate will include the engine and chassis number of the vehicle. You need to do a vehicle registration at the parking area, which is time-consuming but essential.

7. Receipt of purchase

Receipt of purchase is often available when you purchase a used vehicle from the company, not an individual. But some individual sellers can provide receipts with the basic information in the following:

• Names of parties
• Date of purchase
• Name of the car
• Price

3. Buying Used Car: Conclusion

It's always a difficult choice for car owners, especially beginners when deciding between buying a brand new car or a used car.

Used cars, of course, save buyers a lot of depreciation, easier to maintain, also better withstand scratches. However, many people don't know the essential documents needed when purchasing used vehicles.

So that through this article, we hope you have some perspectives on the process of buying a second-hand car in the Philippines.

>>> Thank you for visiting Philhyundai.com!