Is It Cheaper to Buy or Rent a Car Long Term in the Philippines?
Is it cheaper to rent or buy a car long-term in Philippines?
The cost of renting a car in the Philippines is mainly dependent on the age and model of the vehicle. As a rough estimate, you can expect to pay around PHP500-800/day to rent a small sedan like a Toyota Vios or Nissan Tiida, while larger vehicles like SUVs and MPVs will cost more.
In addition, there are some taxes that apply when you rent out a vehicle – they’re about 2% of the rental price per day, which adds up quickly depending on how long you’re renting it for.
The cost of buying a car varies according to the condition and age of the vehicle you buy. A small used sedan in decent condition costs around PHP100K-PHP300K depending on which part of Philippines you live in, while newer cars (2 years old) can go for more than double that amount.
There are also taxes due upon purchase (as high as 10%), and you must register your car for at least 3 months in order to get insurance. If your car is 10 years old or older then it may be cheaper to buy one rather than rent if it’s not very expensive – however, this depends on where you live!
What insurance do I need?
If you’re planning on driving in the Philippines, then you must have third-party liability insurance. This covers any damage or injuries caused by your vehicle in an accident, and it costs about PHP600/year for a small sedan (under 10 years old).
Note that this is the minimum amount of coverage required by law – if you want to get higher coverage, then you can contact your insurer and find out how much it would cost.
As with Singapore, we recommend getting additional coverage to cover any damage or injuries caused by your car. In Philippines, this is called comprehensive insurance (or “all risk”) and is sold separately from 3rd party liability insurance.
You can also get personal accident insurance as part of a package deal with the other two types of coverage. It covers medical expenses in case someone inside your car gets injuries or dies due to a road accident.
For example, if someone was sitting in the back seat of your car and got into accident with another car while crossing the street, then the maximum amount of their personal accident policy will cover their medical bill. Since there are no taxes on comprehensive and personal accident policies, these are definitely worth getting!
Insurance Minimum Coverage Amount Third Party Liability PHP600 (Compulsory) Excess/Deductible PHP100 Comprehensive PHP1,000 (Optional) Personal Accident PHP10K (Optional)
Are there other ways to save on car insurance?
In addition to the insurance options above, there are some other ways you can save money on car insurance. For example, if you have a car that’s less than 10 years old, then you should consider finding extended coverage from your insurer.
For older cars, it might make sense to just get 3rd party liability and personal accident coverage only – the deductible for third-party liability is PHP100 for all cars regardless of age.
Additionally, if you have multiple drivers in your household who drive frequently, then it’s worth checking out multi-car policies since they tend to be cheaper per person per year (as opposed to buying multiple policies).
However, keep in mind that multi-car policies will apply across all vehicles owned by each driver. For example, if two people from the same household are driving their own cars while sharing the same policy, then the law considers them as one vehicle per household rather than two individual ones.