How Much Are Repossessed Cars?

The allure of owning a car in the Philippines often comes with the consideration of affordability. And in recent years, the option of purchasing a repossessed or "repo" car has gained traction, promising substantial cost savings.

However, the question remains: Can you truly afford a repo car in the Philippines, and is it worth the investment? So, to help you with your car-buying decision, we explore the key factors that make repo cars an attractive option, the different price ranges they can go from, and what to check for when buying a second-hand car.

So, What are Repossessed Cars?

A repo car is a vehicle that has been repossessed by a bank or financial institution due to the original owner's inability to make payments on their car loan. Once repossessed, these vehicles are made available for sale at prices that can be significantly lower than the market value.

For instance, RCBC’s cars for sale are repo cars from loans that have defaulted. We offer these cars on our website, available for bidding to purchase. This is a popular choice for our customers as RCBC’s auto loan include packages for RCBC’s repo cars and are flexible to each individual.

Factors Influencing the Price of Repo Cars 

When canvassing for repossessed cars, it’s important to note the factors that can affect its offer price. This information can be helpful in case you have to auction a car, or to weigh whether the listing price offers a good value for money.

• Condition of the Vehicle: The overall condition of the repo car significantly affects its price. Cars in better condition, with minimal wear and tear, are likely to be priced higher than those requiring extensive repairs.
• Mileage: Lower mileage often translates to less wear on the vehicle's components. Repo cars with lower mileage may command higher prices compared to those with higher mileage.
• Make and Model: The make and model of the car plays a role in determining its value. Whether they’re brand new or repo cars, popular and reliable brands may have higher demand, affecting their prices in the repo car market.
• Age of the Vehicle: Generally, newer cars tend to be priced higher than older ones. However, the condition and maintenance history also play a crucial role in determining the value of a repo car. So, if the repo car is relatively new, the price may be closer to the original retail price.
• Market Demand: The demand for specific makes and models in the repo car market can influence prices. High demand for a particular vehicle may lead to increased competition among buyers and, subsequently, higher prices.
• Repair and Maintenance History: Detailed records of the car's repair and maintenance history can impact its price. A repo car with a well-documented history of regular maintenance and timely repairs can be more attractive to buyers and can even be beneficial as an added document in your car loan requirements.

What Are the Ballpark Prices of Repossessed Cars? 

Learning how to buy repossessed cars from banks in the Philippines is the first step in buying used cars. However, since the prices of repo vehicles are generally the main reason for buying them, knowing their estimated value can help you plan out your car canvassing experience, and can help you pinpoint which cars align with your budget.

Entry-Level Cars 

Also known as budget cars, entry-level vehicles are those that are generally more affordable and cater to budget-conscious consumers. These cars are designed to provide basic transportation with a focus on their cost-effectiveness.

A few price ranges for repossessed entry-level cars are:

• 2015 Nissan Almera Automatic Transmission (70,000 kilometers): ₱360,000
• 2016 Hyundai Accent Automatic Transmission (50,000 kilometers): ₱390,000
• 2018 Mitsubishi Mirage Manual Transmission (60,000 kilometers): ₱450,000
• 2019 Nissan Almera Automatic Transmission (20,000 kilometers): ₱480,000
• 2020 Honda Brio RS Automatic Transmission (30,000 kilometers): ₱640,000

Mid-Tier Cars 

Mid-end cars, also known as mid-range or midsize cars, fall between budget-friendly low-end cars and more luxurious high-end cars. These vehicles offer a balance between affordability, features, and performance.

The costs of some mid-tier repossessed cars are:

• 2015 Honda City Automatic Transmission (50,000 kilometers): ₱470,200
• 2015 Mazda 3 Automatic Transmission (30,000 kilometers): ₱480,000
• 2016 Hyundai Tucson Automatic Transmission (50,000 kilometers): ₱670,000
• 2017 Honda CR-V Automatic Transmission (60,000 kilometers): ₱790,000
• 2019 Toyota Rush Automatic Transmission (90,000 kilometers): ₱810,000

Luxury Cars 

High-end vehicles or luxury cars are those that prioritize comfort, advanced features, superior performance, and exquisite design. These vehicles are typically known for their exceptional build quality, cutting-edge technology, and luxurious materials.

The prices of repossessed luxury cars range from:

• 2015 Ford Mustang GT Automatic Transmission (18,000 kilometers): ₱2,380,000
• 2016 Ford Explorer V6 EcoBoost Automatic Transmission (60,000 kilometers): ₱1,390,000
• 2018 Toyota Alphard Automatic Transmission (15,000 kilometers): ₱3,700,000
• 2018 Mercedes-Benz E220 Automatic Transmission (40,000 kilometers): ₱3,180,000
• 2018 BMW X1 XDrive Automatic Transmission (20,000 kilometers): ₱2,180,000

So, Is It Worth It?

The question of whether a repo car in the Philippines is worth it ultimately depends on your priorities, budget constraints, and willingness to navigate the intricacies of purchasing a repossessed vehicle. If you prioritize significant cost savings, a diverse range of options, and the potential for well-maintained vehicles, a repo car can indeed be worth the investment.

If you're ready to buy your first car without breaking the bank, exploring repo cars might just be the right turn for you.