Car
10 cheap cars in the Philippines

Revisiting 2017's 10 Cheap Cars in the Philippines

With the recent tax reform in the country courtesy of the TRAIN (Tax Reform for Acceleration and Inclusion), many have raised concerns regarding how said program could affect the prices of basic commodities. Last year, we talked about how easy it was to own a car now compared to the previous years, but does this still hold true?

We revisit our list of 10 cheap cars in the Philippines from last year and see how their prices—and affordability—have changed.

Honda Brio

2017

2018

Price Difference

P609,000

P631,000

UP 3.6%

Kia Picanto 1.0 EX

2017

2018

Price Difference

P575,000

P615,000

UP 6.9%

Chevrolet Spark

2017

2018

Price Difference

P548,000

P648,888

UP 18.4%

Mitsubishi Mirage GLX

2017

2018

Price Difference

P533,000

P560,000

UP 5.1%

Chery QQ3

2017

2018

Price Difference

P499,000

P499,000

NO CHANGE

Lifan 520 1.3 DX

2017

2018

Price Difference

P498,000

P498,000

NO CHANGE

Toyota Wigo 1.0 E

2017

2018

Price Difference

P473,000

P526,000

UP 11.2%

Geely LC GB

2017

2018

Price Difference

P449,000

P398,000

DOWN 11.4%

Hyundai Eon GL

2017

2018

Price Difference

P438,000

P460,000

UP 5%

Suzuki Alto 800

2017

2018

Price Difference

P398,000

P429,000

UP 7.8%

Is 2018 the right time to buy a car?

With the price of automobiles increasing, with a few exceptions, it can be discouraging for those who are planning to buy a new car in 2018. As the table above shows, even some of the cheap cars in the Philippines have increased their prices to as much as 18%.

There are still several cars under P500,000 so it’s not all bad. If you really need a car, it’s best to buy one this year instead of next year, when fuel prices are set to increase again. Based on the new tax scheme, the new excise taxes for 2018 shall be as follows:

Net Manufacturer’s or Importer’s Selling Price (NMISP)

Excise Tax Rate

P599,999 and below

4%

P600,000 – P999,999

10%

P1,000,000 – P3,999,999

20%

P4,000,000 and above

50%

Take note that excise tax for hybrid cars are half of what’s stated above, and some vehicle types are exempted from it altogether because they aren’t considered “automobiles” under the TRAIN, namely buses, trucks (including pick-ups), cargo vans, jeepneys and jeepney substitutes, single-cab chassis, and special-purpose vehicles.

If you have plans of buying a new car, you must also consider current fuel prices, and the prices for the next two years. The table below shows the new excise tax rates based on the TRAIN.

Fuel Type

2018 Excise Tax

2019 Excise Tax

2020 Excise Tax

Gasoline

P7.00

P9.00

P10.00

Diesel

P2.50

P4.50

P6.00

Kerosene

P3.00

P5.00

P6.00

Auto LPG

P2.50

P4.50

P6.00

Take note that diesel, kerosene, and auto LPG used to be exempted from excise taxes. If your car uses any of these, you should be mindful that you’re now going to pay excise taxes, and that these taxes are to increase in the next two years.

What about car insurance?

You’ll be glad to know that the rate of car insurance premiums haven’t changed despite the TRAIN. However, since the selling price of brand new cars are higher due to the new excise taxes, you will see higher premium rates compared to the previous years because the car’s selling price is one of the determinants of car insurance premiums. However, this is no reason to ditch car insurance; in fact, with fuel and car prices increasing, you should be considering car insurance all the more so you won’t have to worry about repair and other costs in case of emergencies.

Which car insurance plan is for you?

Different drivers have different needs, and there’s no one-size-fits-all solution when it comes to choosing the ideal car insurance policy. Whether you opt for one of the 10 cheap cars in the Philippines or other more expensive models, the prudent thing to do is to check out the available car insurance products out there and pick one that fits your needs. Compare car insurance plans with GoBear today so you can start shopping for your car insurance—and your brand new car.