Buying New Car in Philippines

[Allovertheworld 355]

Is there any sales tax when you buy a vehicle in Philippines?

 

Looking at this one:  Pretty cheap cost

 

2020 TOYOTA RUSH 1.5 G A/T Review | Maine Layug - YouTube

[JeanneAdil 6,498]

You will be subject to import tax

 

As a general rule of thumb, the total amount of import duties and VAT will be around 1/3 of the purchase price of the car. When import tax and duty have been paid, the customs office will provide a customs clearance certificate, which must be presented upon registration of the vehicle.

 

also the car must have emissions control that fits US safety,  bumper and emissions standards 

 

https://www.cbp.gov/trade/basic-import-export/importing-car

[Cyberfx1024 7,980]

1 hour ago, JeanneAdil said:

You will be subject to import tax

 

As a general rule of thumb, the total amount of import duties and VAT will be around 1/3 of the purchase price of the car. When import tax and duty have been paid, the customs office will provide a customs clearance certificate, which must be presented upon registration of the vehicle.

 

also the car must have emissions control that fits US safety,  bumper and emissions standards 

 

https://www.cbp.gov/trade/basic-import-export/importing-car

The OP is talking about buying a car in the Philippines and NOT IMPORTING it. 

[flicks1998 1,044]

If your comparing car prices to the US, there are no new cars in the Philippines that will be cheaper.  Ive been to many of the dealerships in Manila when moving expats into the country and you'll find prices to be about 25% to 200% more than in the US for a similar type car.  Lower end cars will be around 25-33% more than a comparable car in the US.  A few years ago, the Philippines increased their excise tax.  I dont remember the amounts but it differs by the price of the car etc.  If you see a car and the price looks "good" or maybe the same price as the US, its going to be a worse deal, guaranteed.  Less options, etc etc etc

 

Its actually better to buy a used car in the Philippines as you can get much better deals on these.  However you need to really check the condition.  In general, Filipinos dont necessarily keep up the maintenance on their cars like they should.  Also, with flooding common, you need to be careful of flooded cars.  There is no carfax, as far as I know.

 

If you're going to buy a car, I would go with Honda or Toyota and not necessarily a Ford, etc.  Not just because of better build quality, but being able to find parts.  We all know the "sorry sir, out of stock" at about any business in the Philippines.  Imagine now with a car and having to wait weeks or months for that part to arrive.  You get better turnaround times on Honda and Toyota.  

 

Also, if buying a car for Manila, your subject to coding which means one day a week you will not be able to drive it, unless very early in the morning or very late at night on that particular day.  Its determined by the last digit of the license plate.  1-2 Monday, 3-4 Tuesday, 5-6 Wednesday 7-8 Thursday, and 9-0 Fridays.  The government has floated the idea of having two coded days a week but Im not sure of the status on this and COVID may have delayed any type of plan for this. 

 

Before COVID, it was very common to go into a dealership on a Tuesday morning and it would be packed with people buying cars.  This was occurring between about 2012 up to COVID.  

 

The other poster listed about bringing your car into the Philippines.  Dont ever ever EVER do this.  Never.  Most likely you'll never get it out of customs, or you'll be paying 200-500% in "duties" than what you paid for the car in the US.  People have brought Harleys into the Philippines, but they have pieced these out and then rebuilt them when they arrived.  You cant exactly do this with todays cars. 

Edited November 23, 2020 by flicks1998

[payxibka 10,045]

1 hour ago, JeanneAdil said:

You will be subject to import tax

 

As a general rule of thumb, the total amount of import duties and VAT will be around 1/3 of the purchase price of the car. When import tax and duty have been paid, the customs office will provide a customs clearance certificate, which must be presented upon registration of the vehicle.

 

also the car must have emissions control that fits US safety,  bumper and emissions standards 

 

https://www.cbp.gov/trade/basic-import-export/importing-car

Even if the OP was thinking about importing to tbe Philippines,  what does US Customs regulations have to do with anything as it relates to a different country?

[Milmauka 80]

I didn't find Toyota car prices overly inflated in Davao.  I think i took these pictures in middle of 2019.  Granted the engines are not V6, but I thought the prices were reasonable.  I think the Hilux is a diesel engine.  Also, I did not inquire about closing costs.

 

 

Edited November 23, 2020 by Milmauka

[Allovertheworld 355]

30 minutes ago, Milmauka said:

I didn't find Toyota car prices overly inflated in Davao.  I think i took these pictures in middle of 2019.  Granted the engines are not V6, but I thought the prices were reasonable.  I think the Hilux is a diesel engine.  Also, I did not inquire about closing costs.

 

 

The price is right around 1 million pesos.  Last  can remember once a the engine displacement is over 450 cc then you only have to register every 3 years vs like a motorbike which is yearly due to low engine displacement.

 

Me I am good with a 4 cylinder for mileage

 

I am finding the price reasonable as well, I was thinking it would be much higher.  I have shopped for used cars in Davao City before, and will not go thru the process again it too much of pain and you just don't know what you are getting.  If I knew someone personally selling a used vehicle then I would consider that. But I don't see that happening.

 

My gut says you only pay for registration/insurance when you purchase a new car in Philippines. 

[flicks1998 1,044]

None of the various taxes are in those prices. 

[JeanneAdil 6,498]

to OP

sorry i was assuming you planned to buy in Phillipines and bring car here

 

[Allovertheworld 355]

Just now, JeanneAdil said:

to OP

sorry i was assuming you planned to buy in Phillipines and bring car here

 

Too long of a drive 

[JeanneAdil 6,498]

55 minutes ago, Allovertheworld said:

Too long of a drive 

funny but shipping is not that expensive and many military personal buy and ship here 

guys i autocrossed with would buy them out of country and bring them back as they could race them and not have better horsepower without all our emissions control standards

[seekingthetruth 1,246]

2 hours ago, Allovertheworld said:

The price is right around 1 million pesos.  Last  can remember once a the engine displacement is over 450 cc then you only have to register every 3 years vs like a motorbike which is yearly due to low engine displacement.

No.  If you buy new, the first 3 years registration is included.  After that, annual renewal.

Me I am good with a 4 cylinder for mileage

Toyota Wigo is 3 cylinder and weak.  Vios, etc., are 4 and just fine.  I have a Honda Brio 4 cylinder.  Small and peppy.  It was 700  brand new.  I bought it with 5000 km on it for 525.

I am finding the price reasonable as well, I was thinking it would be much higher.  I have shopped for used cars in Davao City before, and will not go thru the process again it too much of pain and you just don't know what you are getting.  If I knew someone personally selling a used vehicle then I would consider that. But I don't see that happening.

If you have patience you can find good late model used car.  I bought my Chevy Trailblazer 6 months old with 5000 km on it.  Same for the Brio.  Safer and easier to buy new if you can afford.

My gut says you only pay for registration/insurance when you purchase a new car in Philippines. 

No.  Registration must be current.  Minimal 3rd party liability insurance is mandatory.  Up to you if you want better coverage.

Vehicles that are built in the Philippines have lower excise taxes.  Toyota and I think Nissan are two.  I think pickups have lower taxes too.

 

If you look at new cars on websites such as https://www.carousell.ph/ you will see a lot of ads that say "all in".  That unusually means taxes and registration are included in the stated price.

 

[seekingthetruth 1,246]

2 minutes ago, JeanneAdil said:

funny but shipping is not that expensive and many military personal buy and ship here 

guys i autocrossed with would buy them out of country and bring them back as they could race them and not have better horsepower without all our emissions control standards

U.S. military used to be able do that and probably shipped for free.  A lot of the 70s / 80s muscle cars you see around Angeles were probably brought by military.

[JeanneAdil 6,498]

7 minutes ago, seekingthetruth said:

U.S. military used to be able do that and probably shipped for free.  A lot of the 70s / 80s muscle cars you see around Angeles were probably brought by military.

I do know as i lived in California 2 years with IBM but we bought our car in Belgium (a diesel) and shipped it her 

[Allovertheworld 355]

14 minutes ago, seekingthetruth said:

Vehicles that are built in the Philippines have lower excise taxes.  Toyota and I think Nissan are two.  I think pickups have lower taxes too.

 

If you look at new cars on websites such as https://www.carousell.ph/ you will see a lot of ads that say "all in".  That unusually means taxes and registration are included in the stated price.

 

I am looking at the Toyota Rush.   Looks sharp and fairly priced.

 

I just have to sit in one and see if I fit. I am 6'2" and 235lbs, not small framed.