Want new car - but geeez these things are expensive

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Want new car - but geeez these things are expensive


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Old 21st August 2019, 12:38 AM
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Default Want new car - but geeez these things are expensive

I thought I would get rid of a couple of 10+ year old vehicles I bought used 4 years ago and buy one new one. Man was I in for some sticker shock.

I guess if I did not live in the US for all my life I would not have questioned my decision. But I can't bring myself to spend 2-2.5 million pesos on a vehicle that I could get in the US for 1.5M - 1.7M pesos.

Looking into why there is a 20% Excise tax on the MSRP and then they add another 12% to the MSRP + Excise total. Then there is probably dealer markup. Seems the PI wants cars to be only available to the rich.

I will not buy another used vehicle in the PI because they always seem to be un-maintained junk. From my experience a lot of filipinos buy the cars/motors on loan and then cannot afford to maintain them or they know it will be repossessed eventually and purposely don't maintain it.

I may end up buying new but it will take a year of convincing myself. ha

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Old 21st August 2019, 10:20 AM
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[ =Zep;14933746]I thought I would get rid of a couple of 10+ year old vehicles I bought used 4 years ago and buy one new one. Man was I in for some sticker shock.

I guess if I did not live in the US for all my life I would not have questioned my decision. But I can't bring myself to spend 2-2.5 million pesos on a vehicle that I could get in the US for 1.5M - 1.7M pesos.

Looking into why there is a 20% Excise tax on the MSRP and then they add another 12% to the MSRP + Excise total. Then there is probably dealer markup. Seems the PI wants cars to be only available to the rich.

I will not buy another used vehicle in the PI because they always seem to be un-maintained junk. From my experience a lot of filipinos buy the cars/motors on loan and then cannot afford to maintain them or they know it will be repossessed eventually and purposely don't maintain it.

I may end up buying new but it will take a year of convincing myself. ha[/QUOTE]

Hey Zep. (I hear your torture) I'm sure you have followed my convoluted posts over time, yes buying second hand or buying new for us turned out to be a no brainer, buying a second hand car in PH. as you well know is fraught with dangers, lol, if the sellers even bother to answer your call or respond to an email enquiry and from experience when they do respond it's never a clear cut case, the owner is in another country or we have no service records etc. I'm sure you've been there.
Though we don't know what type/sort of wheels you are chasing to replace the two oldies I can tell you this, if you are prepared to buy a commercial set of wheels, utility, van or truck there appears to be no taxes, hence us looking at the Ford wild track for PHP 1.7M and there are discounts available on all new cars, percs. Also if you buy a new car you get 3 years rego and we got 1 year comp insurance as well. I love European cars and have owned many in Oz, Merc, Audi, Pug etc. I like creature comforts that come with those type of vehicles and of course went the same here, obviously budgets dictate and for 7 or 8 hundred K you get a basic car, we set a budget of 1M, paid 1.070M for a Chinese knock off brand (Haima S5 Noble) that had most if not all of the bells and whistles of a European car, a medium sized SUV that will do the job for the next 3 or 4, perhaps 5 years. That was our choice as we realised that in our situation a utility or half a utility was not needed as everything can be delivered here and most times free for our extensions and renovations.

While you are looking into taxes do yourself and readers, (pass it on) a favour and look into taxes on commercial type wheels. I always wondered why there were so many dual cab 4x2's and 4x4's kicking around in PH. Tax or none savings one assumes.
Simply a Ford Raptor (so many here now) here is 1.9M (discounts apply if you are astute and make it known) so in AU. 75K plus on roads @ 36 pesos to the buck =2.7M plus on roads. One of the reasons we looked at them and also the wildtrak that was better suited to us @ 1.7M and 3 years reg etc. We look forward to hearing the outcome of your PH. tardy research, wish you luck Zep.

I will add that the Toyota Vios while manufactured here in PH. and Thailand still commands a hefty price for lots of plastic, poor fuel economy, a very basic car from 660K to 1.1M is all plastic, noisy and conforming to what appears to be local needs, great for taxis. Get out and explore guys.

Sorry for the yes again long wined diatribe and then some. OMO.

Cheers, Steve.
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Old 21st August 2019, 10:40 AM
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Originally Posted by bigpearl View Post
[ =Zep;14933746]I thought I would get rid of a couple of 10+ year old vehicles I bought used 4 years ago and buy one new one. Man was I in for some sticker shock.

I guess if I did not live in the US for all my life I would not have questioned my decision. But I can't bring myself to spend 2-2.5 million pesos on a vehicle that I could get in the US for 1.5M - 1.7M pesos.

Looking into why there is a 20% Excise tax on the MSRP and then they add another 12% to the MSRP + Excise total. Then there is probably dealer markup. Seems the PI wants cars to be only available to the rich.

I will not buy another used vehicle in the PI because they always seem to be un-maintained junk. From my experience a lot of filipinos buy the cars/motors on loan and then cannot afford to maintain them or they know it will be repossessed eventually and purposely don't maintain it.

I may end up buying new but it will take a year of convincing myself. ha
Hey Zep. (I hear your torture) I'm sure you have followed my convoluted posts over time, yes buying second hand or buying new for us turned out to be a no brainer, buying a second hand car in PH. as you well know is fraught with dangers, lol, if the sellers even bother to answer your call or respond to an email enquiry and from experience when they do respond it's never a clear cut case, the owner is in another country or we have no service records etc. I'm sure you've been there.
Though we don't know what type/sort of wheels you are chasing to replace the two oldies I can tell you this, if you are prepared to buy a commercial set of wheels, utility, van or truck there appears to be no taxes, hence us looking at the Ford wild track for PHP 1.7M and there are discounts available on all new cars, percs. Also if you buy a new car you get 3 years rego and we got 1 year comp insurance as well. I love European cars and have owned many in Oz, Merc, Audi, Pug etc. I like creature comforts that come with those type of vehicles and of course went the same here, obviously budgets dictate and for 7 or 8 hundred K you get a basic car, we set a budget of 1M, paid 1.070M for a Chinese knock off brand (Haima S5 Noble) that had most if not all of the bells and whistles of a European car, a medium sized SUV that will do the job for the next 3 or 4, perhaps 5 years. That was our choice as we realised that in our situation a utility or half a utility was not needed as everything can be delivered here and most times free for our extensions and renovations.

While you are looking into taxes do yourself and readers, (pass it on) a favour and look into taxes on commercial type wheels. I always wondered why there were so many dual cab 4x2's and 4x4's kicking around in PH. Tax or none savings one assumes.
Simply a Ford Raptor (so many here now) here is 1.9M (discounts apply if you are astute and make it known) so in AU. 75K plus on roads @ 36 pesos to the buck =2.7M plus on roads. One of the reasons we looked at them and also the wildtrak that was better suited to us @ 1.7M and 3 years reg etc. We look forward to hearing the outcome of your PH. tardy research, wish you luck Zep.

I will add that the Toyota Vios while manufactured here in PH. and Thailand still commands a hefty price for lots of plastic, poor fuel economy, a very basic car from 660K to 1.1M is all plastic, noisy and conforming to what appears to be local needs, great for taxis. Get out and explore guys.

Sorry for the yes again long wined diatribe and then some. OMO.

Cheers, Steve.[/QUOTE]Geesh steve...I find your post entertaining and useful and they sure break up the boredom....mahangin? perhaps but well put....
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Old 21st August 2019, 12:34 PM
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Mayhaps you won't like the next one with green but hey that was only an observation from a newbie.

Mahangin in reply has many meanings and can be an insult, pleasant or passing comment.

Cheers, Steve.
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Old 21st August 2019, 12:37 PM
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Mayhaps you won't like the next one with green but hey that was only an observation from a newbie.

Mahangin in reply has many meanings and can be an insult, pleasant or passing comment.

Cheers, Steve.
mahangin refers to windy....but it was meant as a compliment.
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Old 21st August 2019, 12:39 PM
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This forum as many also has a pm feature(not directed to anyone)but sometimes its appropriate.

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Old 21st August 2019, 12:41 PM
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mahangin refers to windy....but it was meant as a compliment.
Depends on ones observations and perspectives Steve. All good and taken as transmitted.

Cheers, Steve.

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Old 21st August 2019, 12:43 PM
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This forum as many also has a pm feature(not directed to anyone)but sometimes its appropriate.
Can you enlighten me/us?

Cheers, Steve.

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Old 21st August 2019, 12:47 PM
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Can you enlighten me/us?

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ok steve,just sent a pm(private message ) to you....sometimes its very appropriate when confronting or just joshing or chewing the fat with another. If u go top right to your user name u should see a notification that you have an instant message. Then just click on it.


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Old 22nd August 2019, 02:33 AM
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ok I did compare the price of pickup trucks between the US and PI and they are about the same. Found an article that says:

" .........at the start of 2018 a freshly minted Tax Reform for Acceleration and Inclusion Act (TRAIN), then you should know that all pickup trucks in our market are now 100% exempt from excise tax. Which means pickups are now relatively more affordable compared to other vehicle types".

So this explains 20% of the difference. I guess they still pay VAT of 12% which is not that much more than the 8% sales tax I was used to paying in the US.

Too bad I don't want/need a pickup. I have a 2007 Toyota Innova and was looking at getting a van like the Honda Odessey or KIA Grand Carnival. But the price of similar in the US is like $32,000 MSRP vs $47,000 in the PI. Also in the US you never pay MSRP always less. Here it seems like they don't negotiate on the price of new cars.

I wanted to stick with something that is made in the US and also sold here. Even the Toyota Innova is a south east asia vehicle which probably has no crash test standards and will fold up like a beer can in an accident. Same reason I will not buy one made in china.

Wife wants a Toyota Hiace van but they have economy car interiors for 2M pesos and again no US equivalent.

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