Consider these top 10 websites in the Philippines to submit your listings on the web to help you steer your car dealing business online. You can weigh their advantages and disadvantages, as well as the features that will benefit site visitors, including you as the business owner.

<h2 class="h2-caption">1. Philvex.com</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653633052/blog/20220527/philvex-logo_pd38pm.webp" style="width: 300px; height: 75px" alt="philvex-logo"/>

Philippine Vehicles Exchange (PhilVex) is a free classified ads website for automobiles that provides the latest technology for car shopping online. For those buyers who prefer to use MAPS while still being able to use classic search methods like <a class="a-link" target="_blank" href="https://philvex.com/cars-for-sale">lists</a>, then this website is for you. This platform utilizes map functionalities for searching both new and used cars online.

If you're looking to buy a new car, PhilVex has a map feature called the <a class="a-link" target="_blank" href="https://philvex.com/new-car-dealerships-map-locator">new car dealerships locator</a> that allows you to easily search among the hundreds of official new car dealerships in the Philippines that have joined the network. Pricing, active listings, and special offers, are among the information that you can get while enjoying this tool. You may compare the pricing and promos of car dealerships to find the best deal for you. 

You can also look for official sales agents who have registered and are linked with a specific car dealership if you require expert assistance. If you prefer to look directly for the top sales agents in your area with good ratings, you can utilize its <a class="a-link" target="_blank" href="https://philvex.com/sales-agents-map-locator">sales agents locator</a>.

PhilVex also has a <a class="a-link" target="_blank" href="https://philvex.com/used-car-dealerships-map-locator">used car dealerships locator</a>, a version of a map locator for buyers who prefer pre-owned, and slightly used autos.

If you want more flexibility while searching for new and used vehicles in your area, you may use its <a class="a-link" target="_blank" href="https://philvex.com/search-on-map?nearby=true" >find cars on maps</a> tool, which allows you to filter by make, model, price, and other specifications.

<a class="a-link" target="_blank" href="https://philvex.com/car-insurance">Car insurance</a> and <a class="a-link" target="_blank" href="https://philvex.com/auto-loan-application">auto loan</a> applications are among the services that can quickly be availed through Philvex.

<h2 class="h2-caption">2. Autodeal.com.ph</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/autodeal-com-ph-logo_enwgnj.webp" style="width: 300px; height: 50px" alt="autodeal-logo"/>

Autodeal.com.ph is a leading platform for buying and selling new and used cars in the Philippines. The website allows users to search for cars based on make, model, price range, and location, and provides a variety of tools and resources to help users make informed decisions about their purchases. In addition to listings for new and used cars, the site also offers information on financing and insurance options, as well as tips and advice for car buyers and sellers.

<h2 class="h2-caption">3. Zigwheels.ph</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/zigwheels-ph-logo_nn4xhe.webp" style="width: 300px; height: 60px" alt="zigwheels-logo"/>

Zigwheels.ph is a car website that provides the latest automotive news, reviews, and features in the Philippines, as well as tools and resources for car buyers. The site covers a wide range of topics, including new car releases, automotive trends, and motoring events, and offers resources such as car comparisons and a car loan calculator to help users make informed decisions about their purchases.

<h2 class="h2-caption">4. Philkotse.com</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/philkotse-com-logo_kwzety.webp" style="width: 300px; height: 130px" alt="philkotse-logo"/>

Philkotse.com is a comprehensive car website that offers a variety of resources for car buyers and enthusiasts in the Philippines. In addition to car listings, the site features car reviews, news, and features on a variety of topics, including new car releases, automotive trends, and motoring events. Users can also find information on financing and insurance options, as well as tips and advice for car buyers and sellers.

<h2 class="h2-caption">5. Carousell.ph</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/carousell-ph-logo_su375w.webp" style="width: 300px; height: 70px" alt="carousell-logo"/>

Carousell is an e-commerce website for various products including cars, gadgets, apparels, and many more. Formerly known as OLX, carousell offers a wide variety of features to a smooth transaction including chats to buyers and notifications. With an average of 4.1 million monthly visitors, it is considered as one of the e-commerce giants in the Philippines.

<h2 class="h2-caption">6. Carmudi.com.ph</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/carmudi-com-ph-logo_ybvay4.png" style="width: 300px; height: 120px" alt="carmudi-logo"/>

Carmudi.com.ph is a classifieds website that specializes in new and used cars. It features a wide range of car listings from dealers and private sellers, and allows users to search for cars based on various criteria such as make, model, price range, and location. The site also offers resources and tools to help users make informed decisions about their purchases, including car reviews, financing and insurance options, and tips and advice for car buyers and sellers.

<h2 class="h2-caption">7. Automart.ph</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653634215/blog/20220527/Automart-ph-logo_kxyfvv.webp" style="width: 300px; height: 80px" alt="automart-logo"/>

Automart.Ph is a popular destination for those looking to purchase a repossessed or used car in the Philippines. The website offers a large selection of affordable vehicles and has partnerships with major banks in the country, providing customers with access to a wide range of repossessed cars at discounted prices. Automart.Ph also has a team of professional sales advisers available to assist customers during the buying process. In addition to being an online platform, the website has physical car lots located in several cities in the Philippines, where customers can visit and view available vehicles in person.

<h2 class="h2-caption">8. Usedcarsphil.com</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653634349/blog/20220527/usedcarphil-logo_imjwsk.webp" style="width: 300px; height: 90px" alt="usedcarsphil-logo"/>

Usedcarsphil.com is a platform for buying and selling used cars in the Philippines. The website allows users to search for cars based on make, model, price range, and location, and provides a variety of tools and resources to help users make informed decisions about their purchases. In addition to listings for used cars, the site also offers information on financing and insurance options, as well as tips and advice for car buyers and sellers.

<h2 class="h2-caption">9. Tsikot.com</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/tsikot-com-logo_f9jeeh.webp" style="width: 300px; height: 90px" alt="tsikot-logo"/>

Tsikot is a comprehensive car website that allows users to buy and sell new and used vehicles, including cars and motorbikes, as well as auto parts, in the Philippines. The website features an intuitive search function that enables users to easily find the vehicles they are interested in by filtering their searches based on various criteria, such as keyword, condition, make, model, body type, price range, and location. In addition to its car listings, Tsikot also offers a variety of services related to cars, including engine repairs, towing and auto transportation, body and detailing, car insurance, and financing.

<h2 class="h2-caption">10. Philmotors.com</h2>
<img src="https://res.cloudinary.com/philvex/image/upload/v1653632720/blog/20220527/philmotors-com-logo_mdo81y.webp" style="width: 300px; height: 80px" alt="philmotors-logo"/>

Philmotors is another one of the pioneers of the automotive websites in the Philippines. It offers free of charge car listings. That is why it is considered as one of the most visited sites when it comes to automotive listings.

Since the COVID-19 outbreak began in December 2019, the car-dealing industry has been one of the hardest hit. Travel restrictions and intermittent lockdowns have hampered business-as-usual onsite visits, preventing clients from visiting your business.
Being visible online as a car dealer business owner is the most efficient strategy to adopt market behavior and reach the market. The majority of individuals nowadays use the internet to research items and services they wish to purchase. So take advantage of this opportunity to position your company online.

Top 10 Best Websites to Buy and Sell Cars in the Philippines - 2023 Ranking

Assume balance, also known as pasalo, is a type of sale in which a car with an existing auto loan is sold to the buyer on the condition that the buyer assumes responsibility for continuing to pay the monthly amortization until the loan is paid off in full. It's basically selling the vehicle even if the loan isn't completely paid off. 
In this arrangement, the buyer pays a lump sum based on the car's condition, market value, and total paid monthly amortization. This amount is often much lower than the traditional down payment for financing, making it more appealing. Following payment, the buyer then assumes the responsibility for paying the remaining monthly amortization. Though banks discourage this practice, it has become popular despite the fact that auto loans are not assumable per se, making the transaction becomes illegal.
However, what makes the transaction legal is when the seller (or the car owner with an existing auto loan) seeks permission from the lender to arrange such a transaction in order to avoid defaulting on the auto loan. If the lender agrees, the buyer will be subjected to the same credit investigation. They must also submit the same documentation as the original borrower did.

<h2 class="h2-title">Is the assume balance safe?</h2>
Though the "assume balance" is a win-win solution for both the seller and the buyer, as well as the bank, there are some risks associated with this arrangement.
On the seller’s side, it is important to seek permission from the lender before entering this transaction as the lender may sue you legally for selling and removing the vehicle from your premises without their consent because it violates the Chattel Mortgage Agreement, and you'll be the one who ends up with a bad credit rating if the buyer fails to make the monthly payments. As long as you obtain consent, the lender will go after the buyer instead of the seller once the buyer defaults on the monthly amortization.
On the buyer’s side, it is also important to have the lender’s consent as the vehicle can be legally sold to you. To protect your purchase, sign a Deed of Absolute Sale, but make sure it mentions that the vehicle is still mortgaged to the lender and the payment terms. This will allow you to keep ownership of the unit, subject to the lender mortgage, which means you'll assume the seller's remaining loan obligation. Furthermore, instead of sending monthly payments to the seller, agree to pay the bank directly, if possible, thus the payment is not dependent on the seller’s will.
Is it still worth it to enter an "assume balance" sale? Yes, but make sure you comply with all legal requirements. A simple contract of sale will not save you; if it breaches the law, it will be unenforceable in a court of law. Prior to closing the deal, both buyers and sellers must exercise due diligence. It will be safe and lawful as long as you receive the lender's approval with the relevant documentation.

Car owners who are unable to keep up with the monthly amortization of their auto loan would opt for someone else to shoulder the payment of the vehicle instead of losing money when the bank or financial institution exercises its right to repossess the vehicle. They'd rather enter into an "assume balance" arrangement or what they call "pasalo" in the hopes of recovering a portion of the paid monthly amortization. But what exactly is this scheme all about?

What is assume balance or pasalo? Is it safe?

We all know that the covid-19 pandemic has been striking our economy since December 2019, forcing businesses to reduce their workforces or, in the worst-case scenario, shut down operations due to lockdowns and quarantine restrictions. When the pandemic hit, car owners were among the most affected, as their payments were halted. Even though the economy is slowly getting back to normal, many of them are still having trouble repaying their auto loans, and others have already defaulted.
Once you miss payments on your auto loan, expect your creditor to charge you late fees. Furthermore, your creditor will likely charge you interest (normally 5%) on the overdue amount that has accumulated. It can also impair your credit history, making it more difficult for you to secure loans in the future, even if they are unrelated to car purchases. Though creditors do not automatically repossess your vehicle after missing one payment, or even after the three (3) month grace period (which varies by creditors), you still have a chance to avoid having your vehicle repossessed.

<h2 class="h2-title">What options do you have to save your car from being repossessed?</h2>

As previously mentioned, you still have options to save your car from being repossessed by your lender, including:
<ul class="ul-margin1">
 <li>Make up for payments that were missed. If you can still catch up on missed payments, it is better to review the loan contract you signed. Loan terms may vary between banks and other financing companies, some consider default if you missed payment by just one day while others provide you a longer grace period.</li>
 <li>
 Car loan refinancing. In a car loan restructuring or debt restructuring per se, you must negotiate with your bank to modify the terms of your auto loan in order to reduce the burden of repayment, provided that you promise to be able to repay the auto loan after restructuring. This could involve modifying your payment schedule, offering you a longer grace period, or even adjusting your interest rates. 
 <div>Read: <a class="a-link" target="_blank" href="https://philippinevehiclesexchange.com/blog/car-loan-refinancing-and-its-benefits">What is auto loan refinancing? How would you benefit from it?</a></div>
 </li>
 <li>Trade in your car at the dealership. Consider trading in your car for a cheaper model if you’re still able to make payments but with a reduced monthly amortization. In this way, the value of your car (after deducting depreciation) will offset the value of the cheaper model. While the more affordable model you choose may result in lower subsequent payments, the negative equity created by your old loan being applied to the new loan may result in higher payments. It depends on what you and the dealer can agree on.</li>
 <li>
 Assume balance or “pasalo”. This option requires you to find someone willing to take on the responsibility of repaying the auto loan balance in exchange for money, with the goal of recovering a portion of the loan payments. It's the same as selling a car that hasn't been fully paid for. You can list your car online through a dealer, auction, or classified car website such as <a class="a-link" target="_blank" href="https://philippinevehiclesexchange.com/">PhilVex</a>.
 <div>Read: <a class="a-link" target="_blank" href="https://philippinevehiclesexchange.com/blog/what-is-assume-balance-or-pasalo-car-is-it-safe">What is assume balance or pasalo? Is it safe?</a></div>
 </li>
</ul>

All these options may be considered to help your financial recovery. With that said, make sure that you have enough emergency funds before considering purchasing a brand-new car through financing as this will avoid you from missing the monthly amortization.

When you opt to finance your brand-new car, you assume that you’re financially capable of paying the monthly amortization, especially if you have a steady monthly income. However, there are some instances that you might experience financial difficulties as a result of uncontrollable circumstances such as the covid-19 pandemic.

What would happen if you defaulted on your auto loan?

<h2 class="h2-title">What is a mortgage?</h2>
Generally, [a] mortgage is a legal agreement between two parties, the creditor and the debtor, in which the former lends money to the latter for the purpose of purchasing a tangible property.
In this agreement, the property is used as collateral for the loan if the debtor fails to pay the agreed-upon terms, which are usually monthly over several years. While the lender doesn't own the property in this scenario per se, it typically reserves the right to seize the property if the debtor defaults on the loan. However, upon full payment, ownership of the property becomes the sole right of the debtor.

<h2 class="h2-title">What are the types of mortgages?</h2>
There are two types of mortgages: (1) traditional mortgage, and (2) chattel mortgage. A chattel mortgage is distinct from a traditional mortgage in that the lender retains ownership of the property until it is paid off. The lender isn't the owner of the property with a traditional mortgage, but they do have a lien on it that allows them to take possession in the case of a default. Ownership of the property passes to the buyer at the end of the mortgage term, if all payments have been made.

<h2 class="h2-title">How does a chattel mortgage for auto loans work?</h2>
Chattel mortgages are very common in the Philippines, especially for businesses to purchase new equipment, such as vehicles. Because vehicles have a long lifespan, the bank can spread the loan over a longer period of time, making the payments more affordable for the buyer. Should the loan be defaulted on, the bank retains ownership of the cars at all times. The buyer can utilize the vehicle as if it were their own when using a Chattel Mortgage. In the unlikely event that the buyer defaults on the loan, the bank can repossess the vehicle and sell it to recover their losses.
Choosing a chattel mortgage is a significant commitment that should be carefully considered. It can be a viable approach to acquire if well planned and executed. While there are more requirements and steps than with a regular cash purchase, this does not appear to deter many people, as indicated by the large number of car buyers who have secured auto loans in recent years.

Banks and other financial institutions play a vital role in every county’s economy as they provide loans to individuals and businesses to help them realize their goals, whether personal or business. But, as we all know, they are for-profit businesses since they have investors and/or depositors who are aiming for a return and/or capital appreciation. They must also safeguard the loans they have provided, particularly those that are extremely lucrative, such as auto loans. With that in mind, they create a solution that protects both parties' interests, which they call a "mortgage."

What is a chattel mortgage and how does it work for car loans?

<h2 class="h2-title">Cash</h2>
The most simple and straightforward of paying for a vehicle is to use cash. Paying cash avoids you to pay an additional cost that comes with car financings such as high-interest rates, and other charges. However, there are some cons you must be aware of as this could result in missed opportunities.
Pros
<ul>
 <li>No additional cost to pay. You don’t have to worry about the additional cost of borrowing such as interest.</li>
 <li>You only spend what you can afford. Spending what you have on hand keeps you from going over your budget.</li>
 <li>No auto loan. You owe no money to the bank or any other car financing company because you paid it off in full.</li>
 <li>Outright ownership. Once you paid it, you own it.</li>
</ul>
Cons
<ul>
 <li>It does not enhance your credit score. If you finance a vehicle, you will improve your credit score and be able to earn lower interest rates in the future if you pay your monthly bills early or on time.</li>
 <li>Missed Opportunity for Low-Interest Rate. On a new vehicle, a brand may sometimes offer lower interest rates or perhaps no interest at all. If the buyer loans the car through an automaker-affiliated institution, the dealer may give significant discounts. This is a chance you don't want to lose.</li>
 <li>Early depreciation. Depreciation begins automatically after the car is released from the dealership. If you plan to resell the vehicle on the secondary market in the future, this will have a substantial impact on the selling price.</li>
</ul>

<h2 class="h2-title">Financing</h2>
Car financing gives you flexible options to choose from. There are several banks and other financing services that offer auto loans.
Pros
<ul>
 <li>Easy to get a vehicle. Even if you are on a tight budget, banks can offer you a car loan</li>
 <li>You get the option of getting a better car or a higher trim-level model</li>
 <li>Allows you to pay for your vehicle in installments</li>
 <li>Flexible monthly rates and down payment options</li>
</ul>
Cons
<ul>
 <li>You have to pay the cost of borrowing – the interest</li>
 <li>You don’t own the vehicle until your last payment</li>
 <li>It is difficult to extinguish a loan when you’re in a financial difficulty</li>
 <li>There’s a possibility that your car will be repossessed especially when you missed a series of payments</li>
 <li>It can negatively affect your credit score or rating. This holds true if you miss out on your monthly payment.</li>
</ul>

There are several factors to consider even if you can afford it in cash, some people prefer to take out a loan. So, it depends on your current financial situation. With that in mind, we'll go over some typical circumstances for deciding whether to buy a car in cash or take out a loan:
<ul>
 <li>Use for the Business. If you own a business and a vehicle is required for daily commuting or as part of the operation, such as for Uber or Grab, it is preferable to take out an auto loan. Don’t worry about the interest; you can cover it with your monthly business earnings. Even if your company has sufficient liquid cash, save it for other purposes such as investing it in the stock market, or purchase it in the real properties to earn and expand, and others.</li>
 <li>For Personal Use. This depends on the financial capability and the characteristics of a person. It is advisable to take out an auto loan if you have a steady monthly income (such as an employee). Some employees, however, prefer to pay it in cash since they do not want the burden or hassle of paying the monthly amortization.</li>
</ul>
In general, an auto loan is always better than a cash payment. Purchasing a brand-new car is costly and paying cash for one means passing up an opportunity to invest in an income-generating asset like real estate.

“Why should I bother paying monthly for a car when I can afford it now?” This question is most asked when a person has enough money to pay for a brand-new car in cash. However, it does not always apply to everyone, particularly employees who make just enough to cover their daily expenses and have minimal savings. If you're thinking about buying a car, you'll need to weigh the pros and cons of paying cash or taking out a loan.

Should I pay cash or get a loan to buy a car? Which is better?

Before exploring further into how auto loans are calculated, it's important to first understand the factors that go into this calculation:
<ul>
 <li>Vehicle’s Cost. It is the purchase price of the vehicle when paid in cash. This includes the cost of the vehicle, any relevant taxes, and, in some cases, the registration fee. You must subtract from the overall value the value of any vehicle you intend to trade-in.</li>
 <li>Down Payment. It is an initial payment made when purchasing expensive goods or services. In most cases, a down payment is calculated depending on the rate, for example, a 20% down payment.</li>
 <li>Loan Term. The length of time for a loan to be paid off in full when the borrower is making regular payments. In most cases, the loan term is referred to the number of months to pay.</li>
 <li>Interest Rate. The percentage of the principal amount that the lender charges for the usage of its funds.</li>
</ul>

<h2 class="h2-title">Do the math</h2>
To compute the auto loan, here’s the formula:
Auto Loan = Vehicle’s Cost – Down Payment
where;
Down Payment = Vehicle’s Cost x Down Payment Rate
For example, the car’s price is P1,000,000 and the down payment rate is 20%. So, your computation is:
Auto Loan = 1,000,000 – (1,000,000 x 20%)
= 1,000,000 – 200,000
= 800,000

To compute the interest, here’s the formula:
Monthly Interest = Auto Loan Balance x (interest rate / 12)
In the previous example, the initial loan balance is P800,000, and let’s say the bank’s annual interest rate is 6%. The computation would be:

Monthly Interest = 800,000 x (0.06 / 12)
= 4,000
To stay on the same page, take note that an auto loan is an amortizing loan, which means you'll have to pay back the loan amount plus interest on a monthly basis. Your monthly payments are the same and include both the principal and interest. Each payment will be the same, but when you make more, you will pay more toward the principal and less for interest. It's known as the "Declining Balance Method" in accounting since the principal balance decreases as you make more payments.

<h2 class="h2-title">How to compute your monthly payment?</h2>
As discussed earlier, your monthly payment includes both the principal payment and the interest of the current loan balance. But how to calculate the monthly amortization? We have to use the PMT formula, which is an abbreviation for PAYMENT:
<img src="https://res.cloudinary.com/philvex/image/upload/v1654953922/blog/20220610/pmt-formula_cxzpns.webp" alt="pmt-formula" style="width: 250px;"/>
where;
P = principal (initial loan amount)
r = interest rate
n = number of payments per year (usually 12 months)
t = time in years
Let us say that the loan is payable for 3 years. To substitute from the previous example,
<img src="https://res.cloudinary.com/philvex/image/upload/v1654953922/blog/20220610/pmt-subtitute_tuev5n.webp" alt="pmt-substitution" style="width: 250px;"/>
Note: You need to use a scientific calculator in order to arrive at the exact amount of 24,338, regular calculators don’t work. 
 
Alternatively, you can use the PMT formula in MS Excel:
24,338 = PMT( (0.06/12), (3*12), -800000 )
 
Finally, we arrive at the following repayment schedule using the aforementioned example:
<img src="https://res.cloudinary.com/philvex/image/upload/v1654961167/blog/20220610/repayment-sched_xjvhnc.png" alt="repayment-schedule"/>

As shown in the table, the interest of 4,000 (800,000*(0.06/12)) is applied first to the first month's payment of 24,388, followed by the principal payment of 20,388. The new loan balance is 779,662 after reflecting the principal payment. Every payment repeats the process until the principal balance reaches zero, which exactly occurs on the last payment.

Have you calculated the amount of interest you'll have to pay on an auto loan? Maybe you're just relying on the bank's calculations, or maybe you're looking for a website that offers a <a class="a-link" target="_blank" href="https://philvex.com/?q=eyJhY3RpdmVTZWFyY2giOiJhdXRvTG9hbiJ9">free auto loan calculator</a>.
When it comes to getting a car loan, you know you want the lowest interest rate and monthly amortization available. However, it is often necessary to understand how the figures are calculated in order to determine whether the loan they are offering is advantageous to you or not.

How to compute auto loan and interest?

Having a lemon unit can be a great burden as it requires to have regular servicing due to some recurring issues. Not only does it add to your monthly expenses but also requires your time and effort. So, what should you do if your brand-new car is found to be defective in the first place? Fortunately, our government lawmakers approved a law that protects consumers in situations like yours. The law is known as "The Philippine Lemon Law".

<h2 class="h2-title">The Philippine Lemon Law</h2>
The <a class="a-link" target="_blank" href="https://lawphil.net/statutes/repacts/ra2014/ra_10642_2014.html">RA 10642</a> also known as “The Philippine Lemon Law” was enacted in 2014 to promote full protection to the rights of consumers in the sale of motor vehicles against business and trade practices which are deceptive, unfair, or otherwise inimical to consumers and the public interest.
This law basically gives full protection to motor vehicle buyers/owners in case the new units they bought from the authorized dealers are deemed defective. The vehicle types included are hatchbacks, sedans, crossovers, and even huge SUVs, among other passenger vehicles. It's important to note, however, that this law does not yet apply to motorbikes, buses, delivery vehicles, or heavy equipment. 
This law only covers brand new vehicles that are bought within twelve (12) months or twenty thousand (20,000) kilometers in operation after the delivery of the vehicle, whichever comes first. This includes nonconformity with the vehicle’s manufacturer or distributor’s standards or specifications except for the following causes:
<ul>
 <li>Noncompliance by the consumer of the obligations under the warranty;</li>
 <li>Modifications not authorized by the manufacturer, distributor, authorized dealer or retailer;</li>
 <li>Abuse or neglect of the brand new motor vehicle; and</li>
 <li>Damage to the vehicle due to accident or force majeure.</li>
</ul>

<h2 class="h2-title">Things that you should do</h2>
The following are the steps that you should take when your brand-new vehicle is found to be defective under the lemon law:
<ol>
 <li>Repair Attempts. You must first bring your vehicle to the manufacturer, distributor, dealer, or retailer, to give them an opportunity to fix the vehicle to be in conformity with the vehicle’s manufacturer or distributor’s standards or specifications. Be sure to bring it immediately after the discovery of defectiveness.
 If the vehicle is still not fixed after four (4) attempts to bring it into compliance with the vehicle's manufacturer or distributor's standards or specifications, you have the option of exercising your Lemon Law rights. Take note that these rights can only be invoked within twelve (12) months after the purchase or twenty thousand (20,000) kilometers of operation of the vehicles.
 </li>
 <li>Notice of Availment of Lemon Law Rights. Once you’re qualified for lemon law rights, you must first notify in writing the manufacturer, distributor, authorized dealer or retailer of the unresolved complaint, and your intention to invoke your rights under RA 10642 within the Lemon Law rights period.</li>
 <li>Availment of Lemon Law Rights. After filing the notice of availment, you should need to bring the vehicle to the manufacturer, distributor, authorized dealer, or retailer from where the vehicle was purchased for a final attempt to address your complaint to your satisfaction.</li>
 <li>File a complaint to the DTI. If the vehicle is deemed to be defective or the nonconformity remains unresolved despite the fixing efforts, you may file a complaint before the Department of Trade and Industry (DTI). But, if the vehicle is not returned for repair within 30 days from the date of notice of release following the final repair attempt, the repair is deemed successful.
 Take note that you are also entitled to a reasonable daily transportation allowance, to compensate for the non-usage of the vehicle while under repair and during the period you exercise your Lemon Law rights. This amount will cover the transportation from your residence to your regular workplace or destination and vice versa, as evidenced by official receipt, or in such amount to be agreed upon by the parties, or a service vehicle at the option of the manufacturer, distributor, authorized dealer, or retailer.
 </li>
 <li>Wait for the DTI to issue a decision. The DTI has sole and exclusive jurisdiction over the case. If the DTI finds nonconformity, it may order the manufacturer, distributor, authorized dealer, or retailer to provide you with one of the following remedies:
 <ul>
 <li>replace the motor vehicle with a similar or comparable motor vehicle in terms of specifications and values, subject to availability; or,</li>
 <li>accept the return of the motor vehicle and pay the consumer the purchase price plus the collateral charges.</li>
 </ul>
 </li>
 <li>Exercise your remedy. Once the DTI issues an order, you shall then exercise your rights with the aforementioned options. You can alternatively choose to buy another vehicle from the same manufacturer, distributor, authorized dealer, or retailer with a greater value and specs, but you will have to pay the difference in price. However, if the DTI does not find nonconformity with the motor vehicle, you must reimburse the manufacturer, distributor, authorized dealer, or retailer for the costs incurred in confirming your complaint.</li>
</ol>

Have you recently bought your first brand-new car? Perhaps no one could ever explain your excitement and eagerness when you take it for a drive around your neighborhood on the first day after picking it up from the car dealership. Furthermore, it’s a thrilling experience when you get behind the wheel of a new car and park it in your garage. How could anyone not be pleased with that?
After driving it for a week, you thought everything was fine with your car; of course, it's brand new! Unfortunately, after a few more weeks, you notice that your car is no longer as efficient as it used to be. Perhaps the car you consider your buddy becomes a problem due to some issues that were not discovered before purchasing it. They usually label it as a “lemon car”.

What should you do if your brand new car is found to be defective?

Thankfully, auto loans and other forms of financing make it easier to get your ideal car, as long as you meet the qualifying criteria for getting financed. If this is your first time applying for a car loan in the Philippines, here are some tips: <h2 class="h2-title">1. Check the minimum eligibility requirements for getting a car loan</h2>

Before you apply for a car loan in the Philippines, you must first determine if you meet the following minimum qualifying requirements:

<ol class="ul-marginp5" style="list-style-type: lower-alpha;">
 <li>Age. You must be at least 21 years of age but not more than 65 years old at the time the auto loan matures.</li>
 <li>Citizenship. You must be a Filipino citizen either residing in the Philippines or abroad. For OFWs, the beneficiary must be a resident citizen of the Philippines. Foreign nationals residing or working in the Philippines can also apply for a car loan if they have qualifying Filipino co-borrowers/co-makers or if the company they work for endorses them.</li>
 <li>Minimum monthly income. This varies depending on the loan provider, but it normally ranges from Php30,000 to Php50,000 of the entire monthly household income.</li>
 <li>Tenure/Business Status. Employees must have been employed on a permanent or regular basis for at least 2 years. Banks normally approve auto loans for businesses that have been in operation for at least 5 years.</li>
</ol>

<h2 class="h2-title">2. Decide where to get financed for your car loan</h2>

You can now choose where to finance your ideal car once you've determined that you're eligible for a car loan in the Philippines. When it comes to financing your car purchase, you have various alternatives:

<ol class="ul-margin1" style="list-style-type: lower-alpha;">
 <li>Bank Financing Bank financing is a financing scheme that lets you lend a specific amount from a bank so you can buy a car. The borrowed amount will subsequently be paid back in a series of monthly installments over the loan's duration, which is usually between 12 and 60 months. In addition to your monthly installment, you must pay interest on the amount you borrowed from them, which varies between 4% and 20% annually depending on the bank. 
 What's great about bank financing is that you deal directly with the bank, unlike other financing options like dealership financing, which typically charges a commission when you're approved for a car loan, resulting in higher interest rates.
 Banks usually offer you a car loan when they determine that you have established good credit with them.
 </li>

 <li>Dealership Financing Dealership financing is another common type of financing scheme in which car financing is made through car dealerships by a network of partner banks and other lending institutions. Some car dealerships also have their own financing arm (known as in-house financing), which ensures quick processing, free registration, chattel mortgage, and insurance. All these options give you the ability to compare offers including interest rates, and down payments.
 When you get car financing from a dealership, you can usually get special offers like 0% interest (for a year), low down payment schemes, or straight monetary discounts, all of which give you the advantage to make a purchase.
 What is good about this scheme is that it acts as a one-stop shop for car purchases which includes the unit and the financing. However, the disadvantage of this scheme is that you will pay more interest and other hidden charges, which will cost you roughly 4% and 5% more than bank loans.
 </li>
</ol>

<h2 class="h2-title">3. Prepare for the auto loan requirements</h2>

The most typical prerequisites for obtaining a car loan in the Philippines are listed below. This varies depending on the type of borrower:

<ul>
 <li>Locally employed
 <ul>
 <li>Valid government-issued ID with signature and photo such as passport, driver's license, UMID/SSS</li>
 <li>Certificate of Employment (COE) issued by your latest employer</li>
 <li>Income Tax Return (ITR) – usually BIR form 2316, 1700, or 1701</li>
 <li>Latest three months’ pay slip</li>
 <li>Latest proof of billing such as electricity, water, or internet bills</li>
 <li>Duly accomplished form</li>
 </ul>
 </li>

 <li>
 Self-employed (or with Business)
 <ul>
 <li>Photocopy of Certificate of Business Registration for Sole Proprietorship (DTI), Articles of Partnership for Partnership (SEC), or Articles of Incorporation for Corporation (SEC)</li>
 <li>Photocopy of Latest Income Tax Return (ITR)</li>
 <li>Photocopy of Audited Financial Statements for the last two years including Statement of Financial Position (or Balance Sheet) and Income Statement</li>
 <li>Bank Statements or Photocopy of Passbook for the last 3 months</li>
 <li>Valid government-issued ID with signature and photo such as passport, driver's license, UMID/SSS of the owner or the authorized representative</li>
 </ul>
 </li>

 <li>Overseas Filipino Worker (OFW) / Working Abroad
 <ul>
 <li>Latest employment contract authenticated by the Philippine Consulate for OFW or latest crew contract for working as Seaman/Seafarer</li>
 <li>Proof of remittance for the last 3 months or more</li>
 </ul>
 </li>
</ul>

Physical assets, such as real estate and other owned vehicles, can also be used as extra evidence of your ability to repay your car loan, increasing your chances of approval. You only need to show proof of ownership.

<h2 class="h2-title">4. Submit your loan application</h2>
If you want to apply for a loan from a bank, you can do it either walk-in or online. If you want to apply through a car dealership, you can do so by going to the nearest branch and filling out an application.
Using the online facility to apply for a loan is a more convenient choice. Other automotive websites, such as <a class="a-link" target="_blank" href="https://philippinevehiclesexchange.com/auto-loan-application">PhilVex</a>, also provide quick online car loan applications.
If you choose to apply online, you must scan or take pictures of your documents and upload them to the company's website.

Are you planning on buying a car soon? Perhaps you've already made up your mind about which vehicle you want to buy after conducting extensive research on the internet using sites like <a class="a-link" target="_blank" href="https://philippinevehiclesexchange.com/cars-for-sale">PhilVex</a>.

Unfortunately, not everyone, whether individuals or businesses, can afford to pay for a car in full at once, not to mention the additional costs of insurance and registration resulting from acquiring such a vehicle. Even if you have enough cash, it is impractical, especially for businesses, to withdraw a large sum of money from their bank account when that money could be put to better use.

How to apply for a car loan in the Philippines?

So, how would you know if the car you’re buying isn’t stolen? Here are some important tips:

<h2 class="h2-title">1. Check the Vehicle Identification Number (VIN)’s authenticity</h2>

The Vehicle Identification Number or VIN is like a fingerprint of a vehicle. Every manufactured vehicle has its own unique code which represents the VIN. The VIN can be used to track recalls, registrations, warranty claims, thefts, and insurance coverage. It is composed of 17 characters (digits and capital letters) that can be found in some places in your car and may vary depending on the auto manufacturer. The most common places you can locate the car’s VIN are on the dashboard, engine block, car frame, under the hood, rear-wheel well, and the driver’s door pillar.

Why VIN is so important when buying a used car? Whenever something happens to a vehicle, be it an accident, oil change, overhaul, or being carnapped, the event is recorded with the vehicle’s VIN. This tracks all the history of events of a specific vehicle. So, when you’re going to buy a used car, be sure to check the VIN.

But how would you know if the VIN is authentic? Make sure that the VIN’s letters are smooth and clearly written. Any signs of tampering such as scratches, strange marks, or cover-ups, are suspicious. If you think that the vehicle is indeed carnapped, that’s the time that you must further verify it by doing the following steps.

<h2 class="h2-title">2. Verify using the LTO’s Mobile Query Facility</h2>


The Land Transportation Office (LTO) adapts to the advancement of new technologies using a mobile query facility that allows the public to inquire about the status of a specific vehicle by texting LTO VEHICLE &lt;space&gt; &lt;plate number&gt; to 2600. After a few minutes, you will receive a text reply containing the information about the vehicle’s status in the following format/sequence: 

Plate number/Make/Model/Year of Manufacturing/Color/Date Last Registered in LTO/LTO Apprehension/Records/LTO Alarm.

The system gives you a convenient way of accessing the status of the vehicle. The “LTO Alarm” on the text message gives you an idea if a car is stolen or not. If it says that it “has no alarm”, then you have a valid reference that the car that you’re going to buy is legit. Once the car owner reports to the LTO that his/her car is stolen, this will update the status of a vehicle bearing plate number under the LTO alarm.

<h2 class="h2-title">3. Contact the Highway Patrol Group (HPG)</h2>

Another way that you can reliably ask for more information about the status of a specific vehicle is by contacting the Highway Patrol Group (HPG). HPG’s main mandate is to “ensure safer highways for all motorists and road users”. While ensuring traffic safety, they also have a complete record of all traffic events including accidents, criminal involvement, and court cases. You can ask for a vehicle clearance certificate from them if the car you are buying has no record of these events. You can contact them via the following:

<ul style="list-style-type: circle;">
 <li>Facebook Page: https://www.facebook.com/Headquarters-Highway-Patrol-Group-800365920063503</li>
 <li>Email: headquartershpg@yahoo.com</li>
 <li>Landline: (632) 724-8869</li>
<ul>

<h2 class="h2-title">4. What should you do if the car you’re dealing with is stolen?</h2>

You have the option of reporting it to the police or not. But take responsibility for the other people that may become a victim if you’re just leaving it to you. Who knows, maybe a member of your family or a relative of yours become a victim. So, it’s better to report it to the police as much as possible so that they can find an easy way to search for the stolen vehicle.

During the pandemic, there has been a shift in the preferences of car buyers to buy second-hand cars over new units to save money especially if you have a tight budget for your next dream car. Conversely, the emerging pre-owned auto market has boomed with the rise of classified automotive websites like <a class="a-link" target="_blank" href="https://philvex.com">PhilVex</a>. With these platforms, you can easily find your next dream car instantly. But don’t ignore the fact that there are risks associated with buying second-hand low-priced cars. Hustlers and carnappers would love making deals with those people leaning toward low-cost transactions.

Are you concerned that the car you're buying is stolen? Here’s how you can verify

<h2 class="h2-title">Common red flags when buying a car</h2>

Keep these warning signs in mind when purchasing a car online:

<ul class="ul-margin1">
 <li>Fake listings on classified websites. Classified websites can be a potential medium for online scamming. They tend to post a fake listing by copying the same information from a legitimate one of the same website or others. They usually post these listings at very attractive prices within a limited timeframe, thus, attracting more victims in a hurry.</li>

 <li>The seller’s and car’s identities don’t match. Always ask the seller for proof of identity. This includes government-issued IDs like SSS/UMID and driver’s license. Make a full check if the name and address match on the vehicle’s registration form. Make sure that the vehicle registration form is original and not a copy, then check for evidence of tampering.</li>

 <li>The seller insists on wire transfer payment in advance. Online scammers usually insist you make a payment in advance using wire transfer services, like MoneyGram or Western Union, before shipping the car. Other scammers nowadays use GCash or account deposit as a medium of fund transfer. Legitimate car sellers don’t use these modes of payment.</li>

 <li>The seller avoids pre-purchase inspection. A pre-purchase inspection is a good way to determine hidden defects of the car you want to buy. Though it costs you to pay for an auto mechanic, it saves you a lot from uncovering defects that you may have missed before pushing the deal.</li>

</ul>

<h2 class="h2-title" style="margin-top: 3rem;">Common red flags when selling a car</h2>

Watch out for these common warning signs when selling cars online:

<ul class="ul-margin1">
 <li>Fraudulent fake deposit. A scammer may ask for your bank account number and name to send money to your account. After a few hours, he will send you a fake validated bank deposit slip claiming that he had made a payment for the car purchased. Don’t just rely on the validated deposit slip, make some effort to check your balance online or call your bank to verify the deposit of the same amount.</li>

<li>Promise of future payment. A dishonest buyer may promise you a staggered payment arrangement or wait until he gets the next paycheck before paying you. This could be a sign that the buyer will not pay after he got the car.</li>

</ul>

As the internet users grow fast, the online automotive marketplace also has tremendously grown fast as it is easier to buy and sell vehicles on the secondary market. But don’t ignore the fact that scammers are also moving to the internet.

Whether you are on the market for brand-new or slightly used vehicles, you always must safeguard yourself against the potential risk of losing your hard-earned money to these online scammers. Spend some time researching so that you can avoid being a victim of a car scam.

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