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Buying a Repossessed Car in the Philippines

Buying a Repossessed Car in the Philippines

Buying a Repossessed Car in the Philippines

 

The idea of spending hundreds of thousands, or even millions of pesos to purchase a brand new car isn’t always the wisest thing to do, especially when you know that its value depreciates heavily each year. In many instances, buying a repossessed vehicle is the smartest option.

 

Whether you have a tight budget, or you simply want to get a new car model for a lesser price, knowing where and how to buy repossessed vehicles in the Philippines is imperative. So in this article, we’ll talk about the pros and cons of buying a repossessed car in the Philippines and how you can finally own one.

 

What are Repossessed Cars?

Repossessed Cars are vehicles that are seized by the bank or any financial institution from a car owner who fails to pay its due. The said institutions sell it at a much lower price to compensate for the loss. Because of the high number of vehicles being repossessed, these institutions have already set up a process to sell them to the highest bidder by auctioning them off.

 

Advantages of Buying a Repossessed Car in the Philippines

 

1. You can score an almost brand-new used car for a lower price.

Since a repossessed car, like any used car, has already depreciated in value, the downpayment and monthly amortization for a repossessed car are significantly cheaper than a brand new car. You could find an almost brand-new car if you are lucky!

In addition, repossessed cars might even be significantly lower than the usual used market value for a particular car model. This is because financial institutions keep prices down to attract buyers so they can easily recoup the money they lost as fast as possible.

2. Most repossessed cars only have a few kilometers on their odometers.

Some will even have current year models for sale and may even come with its manufacturer’s warranty.

3. You are dealing with safe and trustworthy sellers

Buying a repossessed car in the Philippines from a trustworthy lending institution can provide you peace of mind as you can have the assurance that every transaction you make with them is legal and secure. Moreover, buying a vehicle from a reputable company can guarantee that the car you are trying to purchase is not stolen and that you are transacting with a trustworthy seller.

Also read: 3 Practical Reasons Why You Should Buy a Second-Hand Car

 

Disadvantages of buying a repossessed car

While very much enticing, repossessed cars still have their own set of cons that a buyer must consider.

1. Unfavorable vehicle background and condition

Chances are that the previous owner couldn’t afford its regular maintenance. That being said, it is unlikely that they have spent money to take their vehicles to a mechanic for regular maintenance. So if there are issues with your purchased repossessed car, you will have to deal with the repair costs from your own pocket.

2. Efforts to find and buy the best repo car

You will have to put in a lot of effort and patience into it as the process of buying one can be very time-consuming.

3. You cannot test drive a repossessed car

Most banks will not allow a potential buyer to test drive a car they want to purchase, though some may allow you to start the vehicle. This may hamper one’s capability to thoroughly check the car’s condition.

In some cases, institutions sell repossessed cars on an “as-is, where-is” basis. This means that you, as the buyer, will accept the car in the condition that it is in, including any flaws or issues that it has. So it’s important to check the car that you’ve been eyeing thoroughly. This is why we recommend bringing your trusted mechanic to inspect some issues.

Where can you buy a repossessed car in the Philippines?

 

Thankfully, there are reputable companies such as RFC (Radiowealth Finance Corporation) who has launched an RFShop, a web-based consumer marketplace intended for buying affordable and high-quality pre-owned vehicles.

With the RFShop, you can now search, browse, and buy pre-owned cars, trucks, and motorcycles at the comfort of your home, anytime, anywhere! RFC also offers a list of pre-owned vehicles from popular brands like Honda, Toyota, Ford, and Hyundai.

After choosing a car model and inspecting it in person, it’s time to make an offer. When bidding for a repossessed car, make sure to not lowball your offer since other buyers can easily outbid you.

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. Once the releasing and all the paperwork have been done, you can now enjoy your car! 

Also Read: 5 Practical Tips When Buying a Second-Hand Car

Conclusion

Knowing the benefits and drawbacks of purchasing a repossessed vehicle before deciding to buy one is imperative. And suppose you do consider buying a repossessed car, you should be thorough in choosing the financial institution you will buy from, as much as inspecting the condition of your chosen vehicle. In this way, you have the assurance that you are getting a quality vehicle from a trusted seller and at a lower price.

Ready to search for a repossessed vehicle? Take a look at RFC’s pre-owned vehicles for sale through this link: https://rfshop.com.ph/product/search?cat=1

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