Debunking 5 Myths About Buying Used Cars
In the Philippines, where rising prices and heavy traffic make car ownership a major decision, buying a used car is an increasingly popular choice. Yet despite the clear financial advantages, many Filipino buyers remain hesitant, largely due to myths and misconceptions that persist in the market. These misunderstandings often prevent smart, budget-conscious consumers from finding great deals on pre-owned vehicles.
In this blog, we debunk the five most common myths about buying used cars in the Philippine context and explain why a second-hand vehicle might just be the perfect fit for your needs.
Myth #1: "All Used Cars Have Hidden Problems"
The Reality
While it’s true that some used vehicles have issues, this stereotype unfairly paints all pre-owned cars with the same brush. Thanks to the growth of certified pre-owned programs and reputable dealerships in Metro Manila and across the Philippines, buyers today have better access to high-quality used cars than ever before.
What to Look For
- Vehicle History Reports: Services are available locally, providing information on past ownership, accidents, and service history. For instance, you can check the car’s registration and ownership details through the Land Transportation Office (LTO). Additionally, you can also check for any existing violations or penalties, or if the car was involved in any legal issues or cases of theft.
- Trusted Dealerships: Dealerships offering transparent pricing, maintenance history, and warranty options are far less likely to sell problematic units.
- Certified Pre-Owned (CPO) Vehicles: Car manufacturers and some automotive marketplace platforms now offer CPO programs. These typically include multi-point inspections, warranties, and repair guarantees, ensuring that the vehicle meets high standards of quality and reliability.
Pro Tip: Always bring a trusted mechanic or use third-party inspection services before finalizing any purchase. A small inspection fee can save you thousands in unexpected repairs later.
Myth #2: "Used Cars Are Not Reliable"
The Reality
Today's vehicles are built to last longer. It is not uncommon for cars to easily surpass 150,000 to 200,000 kilometers if properly maintained, and this includes vehicles driving daily in Metro Manila traffic.
According to our research on the top-selling used cars, cars like the Toyota Vios, Mitsubishi Mirage, and Mitsubishi Montero Sport are among the most popular in the Philippines, thanks to their durability and long-lasting performance.
How to Ensure Reliability
- Check Maintenance Records: A well-documented maintenance history is a strong indicator of a car’s future performance.
- Focus on Reputable Brands: Popular brands such as Toyota and Mitsubishi, particularly in the Philippines, are known for their reliability.
- Mileage Isn't Everything: A lower mileage car that was poorly maintained may perform worse than a higher mileage vehicle that was regularly serviced.
Pro Tip
Ask about regular services like oil changes, brake pad replacements, and timing belt changes, especially important in the humid Philippine climate.
Myth #3: "Used Cars Have Outdated Features"
The Reality
Modern used cars—especially those three to five years old—already come with a wide range of features. Touchscreen infotainment systems, rearview cameras, Bluetooth connectivity, and safety technologies like Anti-lock Braking System (ABS) and airbags are standard in many models sold in the Philippines.
Pro Tip
Be sure to list your "must-have" features before shopping. You'll likely find a used car that meets most, if not all, of your requirements for much less than a brand-new unit.
Myth #4: "Financing a Used Car is Difficult"
The Reality
Used car financing options are now available across the Philippines, especially in Metro Manila. Some even offer fast loan approvals for qualified borrowers.
In the past, financing a second-hand vehicle was more challenging due to limited options and higher interest rates. However, with the proliferation of Non-Banking Financial Institutions (NBFIs) like AsiaLink, Global Dominion, and others, it has become much easier to secure financing. These institutions offer specialized loans for used cars, providing more accessible and flexible financing options for buyers, whether purchasing through online marketplaces, auctions, or traditional showrooms.
What You Need to Know
- Loan Terms: Used car loans often have slightly higher interest rates compared to new car loans, but the overall loan amount is much smaller.
- Requirements: Typical requirements include valid IDs, proof of income, proof of billing, and sometimes a co-maker.
- Approval Speed: Depending on the lender, approval can happen within 24 to 72 hours, especially in Metro Manila.
Pro Tip: Many dealerships have established relationships with financing companies that specialize in car financing. When inquiring about these options, dealers can connect you with their trusted partners to secure better deals and terms.
Myth #5: "It's Safer to Buy New Because of the Warranty"
The Reality
While new cars do come with full warranties, many used vehicles—especially certified pre-owned or relatively newer models—still have active warranties. Even if the original warranty has expired, some dealerships in the Philippines offer limited warranties on select units.
Moreover, because used car prices are lower, buyers can allocate part of their savings toward extended warranty programs or service plans, offering similar peace of mind.
What to Watch For
- Certified Pre-Owned Warranties: Some local dealers offer six-month to one-year warranties even for used cars.
- Extended Warranty Offers: For a reasonable fee, buyers can extend the coverage of a used car’s major components.
Pro Tip
Always ask about available warranty options before finalizing a used car purchase. It can add tremendous value, especially if you plan to keep the car for several years.
Buying a used car in the Philippines is a smart move, as long as you approach the process armed with the right information.
Debunking these myths shows that a well-chosen used vehicle can offer reliability, modern features, financing options, and even warranty protection, all at a fraction of the cost of a brand-new car.
In today’s market, it’s entirely possible to find a great second-hand vehicle that meets your needs and gives you peace of mind on the road. Whether you're a first-time car buyer or looking to upgrade, don't let outdated misconceptions hold you back. Explore your options, do your homework, and drive away smarter—and with more money left in your pocket.
