AS Gen Zs approach adulthood, many of them have started to take on more responsibilities: paying bills, helping with household expenses, and of course, finally making big purchases one could only dream of as a kid.
Now that you’re adulting, one thing you might be thinking of is taking that big step and buying a car, given how inconvenient public transportation in this country could be.
However, it’s important to ask yourself: is this something that you’re prepared for, especially in today’s economy?
“With inflation, it’s quite difficult owning a car, especially when it’s for everyday use,” shared 23-year-old Riley de Leon, who learned how to drive in 2019 and was recently given a car as their graduation gift.
“It’s worth it to buy a car when you have places (to go to) that are far apart and public transportation is limited in the area.”
Think of the maintenance
According to Toyota Philippines, you need the following to be able to purchase a car in the Philippines:
- Driver’s license
- Minimum of 12 post-dated checks under the name of the borrower / co-maker
- Latest original proof of billing under the name of the borrower / co-maker
- 2 valid government IDs of the borrower / co-maker
- Filled out and signed credit application form
- Bank statements from the last three months
- 3 PR and 2 PR with address and landline listed
- Payslip
- Latest contract / Certificate of Employment with compensation / Business Registration
- Latest income tax return with the latest audited financial statement
- Proof of remittance (for seamen or OFWs)
- Reservation fee
This may vary depending on the brand you’re buying, and if you’re buying a brand new or secondhand car.
Philkotse also noted that it’s important to have the following when making your purchase:
- Payment documents
- Check from the bank
- Check from a pre-approved loan
- Check from the cashier
- Personal check
- Driver’s license
- Proof of insurance
- Car title
- Deed of sale
- Registration certificate
- Purchase receipt
Some long-term costs that you need to take into consideration are the following:
- Fuel costs
- Loan interests
- Comprehensive insurance payments
- Maintenance fees
- Repair fees
- LTO registration and renewal
When buying a car, you need to remember that this isn’t a one-time payment. You’re opening yourself up to expenses for your vehicle’s maintenance, such as oil and wiper fluid changes, car washes, and many more.
De Leon, for example, spends about Php 8,000 per month on their car’s maintenance for things like oil changes and checking since their car is a 2024 Toyota Veloz, which has electric features.
For gasoline alone, they spend about Php 4,000 a month. 22-year-old Gerrie Joaquin Talavera, another car owner, spends between Php 2,000 to Php 3,000 on fuel.
Talavera, who also received his 2023 Subaru BRZ as a graduation gift, explained that you need to change oil every 1,000 and 10,000 kilometers. Changing the oil on his car after 1,000 kilometers cost him about Php 5,000.
You also need to pay for driving school, your license, and many others before you’re able to drive. De Leon noted that they spent about Php 6,000 to 7,000 for this.
Talavera, who got his license in 2021, found the process of getting a driver’s license to be rather cumbersome though understandable, given that this was to prevent road accidents and troubles.
And there’s, of course, the heftiest amount that you need to think of: the cost of the car itself and the monthly installments if you’re not paying in full.
De Leon advised those thinking of getting a car to take their time to consider all these aspects.
“Save up as much as you can, and possibly a little over five preventive maintenance services to ensure that both the vehicle and its maintenance would be accommodated for,” they said.
Talavera, who lives in the province, sees his car as a necessity for more convenient transportation, though he’s noticed that the roads have grown more congested.
“Generally, having a personal car is still worth it since aside from the comfort it provides, it is also a good help should there be emergencies,” he said.
“I recommend having a car in the province, but not so much in Metro Manila, since roads are almost always congested and there are other expenses one has to pay for such as parking.”
At the end of the day, though, the decision’s up to you. If you’re financially capable and think it’s time, Talavera recommends doing a cost-benefit analysis to determine if it is worth it.
He added: “For the kind of car and its maintenance, it always depends on the buyer’s budget, and the car they have or want, so I can’t give an exact price. I would recommend, however, to only buy what you can afford [to take care of.]”
