Car owners in the Philippines eventually reach a point when they are faced with an important decision: to upgrade or not? If driving has become a part of your daily life, it is important that you know when to change your car or even get a second one.
What to watch out for
A car is one of the most significant investments you'll ever make, so spending your money wisely is essential. If you're considering whether it's time to upgrade your daily driver, here are some key signs to look out for:
- The car is no longer safe to drive.
- The costs to repair and maintain the car exceeds its current value.
- There is a frequent need for repair and maintenance.
- The fuel tank drains too quickly.
- The car no longer fits your lifestyle.
A quick rundown through these signs will help you decide whether to replace your old ride. Due to road safety concerns, just one of the abovementioned reasons is enough to justify an upgrade.
Choosing between buying brand new vs. secondhand car
While the usual passenger vehicles are built to last 200,000 miles or more, the longevity of a car often depends on how well it is taken care of.
A quick Google search will tell you that the average car lifespan is around 12 years. Again, relative to mileage and wear-and-tear, a car owner can always extend the life of a vehicle past the average. However, the usual signs of an aging vehicle will gradually surface.
After making the important decision of upgrading, the next thing to think of is what type of car to buy, and if it’s worth buying a brand new one vs. buying a used one. With the increasing costs of brand-new car prices, looking at secondhand cars can seem like a better deal.
Here are the factors for comparison when choosing between a brand-new vs secondhand car:
Price point or total cost
When choosing your investment, it’ll be good to know that secondhand or bank-repossessed cars have the advantage in price. For example, getting a secondhand Toyota Wigo can save you around PHP 220,000 to 250,000.
However, if you decide to buy secondhand, you must practice due diligence to ensure you’re getting the best value for your money.
Request for a history check on the secondhand or repossessed car to see if there’s any likelihood of recurring car trouble. After all, you wouldn’t want to end up paying for costly repairs that would rival the costs of a brand-new car.
If you can afford a car loan in the Philippines, going brand new can still be a cost-effective option, especially since you get a three to five-year service and maintenance warranty. This guarantees your new car is kept at brand new quality for a long time. With the current car loan interest rates for a brand-new car, a car loan allows you to enjoy all the benefits that come with peace of mind.
You can apply for a Metrobank Car Loan today and start making more meaningful journeys.
Condition, maintenance, and repairs
In the same way, secondhand cars have the advantage over brand new cars, it’s the latter has the edge when it comes to vehicle condition. Secondhand cars also come with a warranty, providing you with peace of mind.
With secondhand cars, you aren’t fully aware of what that vehicle has gone through. It might cost you more in maintenance and repairs.
Convenience and ease of purchase
If you’re the type of person who doesn’t like getting inconvenienced, then buying brand new is for you. With the fast turnaround times in securing bank approvals and car loans, you can enjoy a streamlined process that guarantees added security and peace of mind.
While established secondhand car dealerships also have bank partnerships, the usual installment payment schemes when buying brand new make this option more attractive.
For example, when buying a brand-new Toyota Vios 2022 1.3 Base M/T (selling price PHP 599,000.00), you can make a 20% down payment and secure bank approval to pay PHP 10,141.00 a month for the next five years.
Value and depreciation
If you intend to regularly buy and sell vehicles, getting a secondhand car is the better option in terms of value and depreciation.
The first owner has suffered the most from the drop in value, as he’ll be selling a vehicle in perfect working condition at a considerably lower price. The moment you get your brand-new car, its value depreciates already.
So, when is the right time to upgrade your car?
Given the telltale signs of wear and tear, you already know that replacing your car is for your safety.
You will likely turn to your finances when deciding whether to buy a brand-new or secondhand cars. How much does your budget permit? Will you have to sell your old car to buy a new one? Are you financially ready for an upgrade?
If you can afford the monthly payments and want all the benefits of being the first owner, buying a brand new through a car loan is a cost-effective option. With manageable payment terms and competitive rates, Metrobank’s Car Loan can provide the key to your dream car.
On the other hand, buying a secondhand or repossessed car can still be a good option if you prefer to pay in a lump sum and your risk tolerance is higher than average. It is also more budget-friendly. Feel free to visit Metrobank’s repossessed vehicles for sale and upgrade your daily driver today.
To ensure financial security, the best time to upgrade your car is when you already have an emergency fund, life savings, and some room to invest.
To ensure you’re financially secure, the best time to upgrade your car is when you already have an emergency fund, life savings, and some room to invest. Regardless of what you decide between a secondhand car vs. a brand-new car, it's wise to consider getting non-life insurance for your new vehicle. This type of insurance protects your investment against accidents and damages and provides peace of mind as you navigate the responsibilities of car ownership. With financial stability and adequate insurance coverage, you can enjoy your new ride with confidence and security.
Open a savings account at Metrobank or get a Metrobank Car Loan today!