A common mistake that people make is saving up only for the total cost of the car purchase and not for the expenses that come after buying it. The costs of your car don’t end when you drive it off the car dealer. Take a look at 6 annual car expenses involved with owning a car in the Philippines, based on buying a sedan with a fair market value (FMV) of Php 600,000.
1. Fuel
Fuel is one of the biggest expenses involved with your car. Currently, diesel prices are around Php28.00 per liter, with gasoline at Php41.00 per liter. This expense will vary on how much you drive and how much fuel you use.
Average Total Cost:
Php 41.50 x 2.8 liters x 365 days = Php 42,413.00
2. Parking
Parking can be trickier. If you’re lucky, you’ve got a spot in the building that you work at. Otherwise, you’ll have to park in surrounding parking structures, and that can be just as costly. The average parking fee is around Php150.00 for a full eight hours.
Average Total Cost:
Php150.00 x 20 Working Days x 12 Months = Php 36,000.00
3. Loan Interest
Estimating a 20% down payment for a 36-month term, you’ll be paying at least Php72,000.00 in interest throughout the life of your loan, depending on your bank terms.
Average Total Cost:
Php 24,000.00
4. Car Insurance
Comprehensive coverage premiums will vary between providers, but for a sedan, you’ll spend an average of Php 20,000. You can compare providers on MoneyMax.ph to get the lowest car insurance covers you want.
Average Total Cost:
Php 20,000.00
5. Repairs and Maintenance
This is a variable cost of owning a car. Costs will depend on the usage of the car, its brand, and model. Most cars should undergo an oil change every 5,000 kilometers, and preventive maintenance services at regular intervals.
Average Total Cost:
Php 5,000.00
6. LTO Registration
If you want to be able to drive your new car around, this is a necessity. Renewal is once a year and is mandated by the Land Transportation Office (LTO) for all car owners. You can do this at any LTO branch near you.
Average Total Cost:
Php950.00 (CTPL) + Php410.00 (Emission Testing) + Php 1,974.06 (Car Registration) = Php 3,334.06
Total Annual Car Expenses
Php 130,747.06
The total annual cost of owning a car requires looking into the details, and will vary depending on how you use your vehicle. That doesn’t mean that you should cut corners, as the money you pay goes a long way to ensuring you and your companions safety in your new car.
