Importing a Car to the Philippines
February 7, 2009
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Posted by dmihalia
When we decided to move to the Philippines there became the issue of transportation. After spending a while back there last year it was decided that we will need our own auto. We like to travel around Luzon and the general area where our house is too much to depend on public transportation or family members. Of course, being a man this made me happy because I would get to do one of my favorite things, shop for a car.
I have been researching prices and trying to decide whether to buy new or used and what model or type of vehicle I would want. My research is limited because I am currently in the US and I am using the Internet for my information. What I have found so far is that similar to my tastes on US cars I would prefer to buy a used car with a few years and a few miles on it over a new car. In the type of vehicle I want, which would be something that would carry five or more passengers comfortably a used vehicle would cost me in the 500-700k Php range as a new one would cost well over 1 million pesos. I prefer used because most of the kinks have been worked out.
The reason I’m talking about buying a vehicle in the Philippines and the title of the post is Importing a Car to the Philippines is because I’m getting my ammunition for my case against my wife. You see she has a beautiful fire engine red 2001 Pontiac Grand Am which has not given us any major problems so far. In fact, for a 2001 model figuring average 15-20,000 miles average per year you would think it should have mega mileage but actually it has around 50K on it and she takes very good care of it. She wants to take it to the Philippines thus my research on whether to import this car or buy one there.
You heard what I’m looking for and how much it would cost now comes the part on how much it would cost to import the car. First off, from my research I think it can’t be done. On the site Movers.com I’ve found that cars over 5 years old are restricted from importing into the Philippines. I rest my case! But looking into some other restrictions I can how it would be almost impossible even if the care was newer. Besides the owner having to be in the Philippines for delivery the restriction on gasoline fueled cars is 2,800cc not over 1,500 kg. This heavy 6 cylinder US gas guzzler far exceeds the limits on vehicles that are legal for import.
You have to understand that making it easy for people to import cars into the Philippines would cut down on those who would buy a car in the Philippines. My main concern though would be availability of parts, including tires to repair this car although there are repair shops for the major models in the Manila area but the parts must be shipped from the US. This is where balikbayan boxes could be utilized but then you would have to have a contact in the US for that.
If you are considering importing a car to the Philipppines I suggest that you look at the duties and taxes for doing such. From what I find the duties can be as high as 100% of value for the vehicle plus various taxes, bribes, and such. The good news on this front is the restrictions and fees are much less for the Hybrid and alternative fuel type cars although I’m sure the parts and fuel availabillty issues rise again.
In the end I am going to present this to my wife and steer her to sites such as Auto Trade Center Philippines and Buy and Sell Philippines. I’m sure she will enjoy shopping for our next vehicle in the Philippines and the Red Grand Am will stay in the US.
Categories: Philippines General
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Hi Dan – You can import a car. Import duty, though is 100% of the original sale price. So, if that car cost you $20,000 then you must pay the Philippine Government $20,000 to bring it in.
Sell the car and buy a new one here. There is no way to justify the cost of bringing one in.
Thanks for the support Bob!!
Hi Dan,
Nice site. I was going to comment, but Bob beat me too it.
When I fist moved here I bought a Kia Rio new. Most people tell me to buy used, but I was a newbee here.
In America Kia is thought of as a cheaper brand, but here is popular. Best of all was the dealership. I had 2 times I needed body work and they had the insurance adjuster there and even fixed all ot the scratches and dings and even changed the type of windshield tinting and put it all on the insurance. Great sericve department. Good Luck in your move
A KIA is definitely one of the types I am lookng at. Thanks for the info it puts a KIA higher on my list.
The duty and other fees have already been pointed out. It really comes out to more thna 100% added on.
Something else those who are ‘in love’ with their cars … a car like Pontiac Trans Am would be very unsuitable. It’s too big, too wide, burns way to much gas and more importantly, service would be a nighmare. You can’t get parts (imported parts are subject to the same duty) and many common US systems like anti-lock brakes, ait bags etc. would be very hard to get serviced.
Ford and Chrysler both sell here in limited quantities, but in the ford line (mainly SUVs) you’ll find the cars are actually made specially for export.
I would not buy a used car here, period. I looked for months before I gave up on finding anything that wasn’t overpriced junk.
Buy a new Kia, Toyota, Mitsubishi,, Nissan from a licensed dealer and save yourself a lot of heartbreak … it will be cheaper in the long run.
Dave Starrs last blog post..Philippine Fairy Tales and Other Bedtime Stories
Hi Dave
I agree with everything you said. As far as looking at used cars that will have to wait until I get in the country.
Hi you can check also carfinder(dot)com for used cars in the Philippines I used to stay there for a couple of months, and used car there are cheap if you have a good source.
Importing cars is not effective in most parts of the world. The reason for that is the fact that each country supports its economy and domestic dealers and importers. So you have 99% chance that buying a car locally you will win financially.
I’ve checked car finder. Seems nothing useful.
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I know i’m a little late putting my 2 cent into this blog but I’ve imported and purchased a vehicle in the Philippines and if I may I would like to give my view. Importing a car to the Philippine “would” be cheaper if the country wasn’t so corrupt and if someone could create some kind of order in customs. You have to grease everyone and their brother to get your car out of customs even after you pay the tax and VAT, and don’t bother complaining cause if you do your SOL cause they will make it even harder for you cause now the “Pulis” get involved and they have to get part of the action. Now this leads us to purchasing a car; if these import taxes was made to protect car dealers why do they sale a car 3 times the amount the price it would cost for you to purchase and import the car, I realize the dealers have to pay an import tax but when one purchase the vehicle the price should equal the amount if you where to import it yourself…No matter what avenue you take you going to get ripped off. I
No matter how you slice it, the folks at the Phil gov’t. structured the importation laws in such a way that you have to go through a whole hell of a lot just to get a hard-earned item into the country. It is a ploy to make avenues for “organized Philippine Government crime” to make money out of honest citizens of the world. Here you are willing to pay for importation dues and yet it is made so difficult to get that out of the pier. Even with this new so-called “honest” president and his administration, the mentality will not disappear. Sad to say, we are all crooks as a nation. For anyone who does not see that is in total denial.
Joe you could say that about many countries of the world. Some are so good at it that you wouldn’t even know they were robbing you.
Can some one tell me, if i can bring in a car motor to make my own Jeepney? as we are about to come back there after being in OZ for some time now, my wife in pinoy, so we thought our cars are not under 5yrs young so rip out the motors and gearboxs and bring them as make up two jeepney to have a side line… If any one can add to this it would be good.
The blog was without a doubt an excellent read & I like to see good writing floating around the net being that alot is the same thing. I recognize that when your talking about material it’s for the most part King in the case of making a website ranked and what not (probably the reason I saw this). I have made a few sites back when and am working on an internet micro jobs marketplace type site made for people to visit and buy and sell services to eachother. So I have to pound away on writing some blog content and what not on the site and what not. So anyway take it easy and keep getting out good material.
i happened on this article with interesting comments only because i myself am entertaining to import my car. i happen to be a filipino. i couldn’t help but agree with joe that the the gov’t red tape or procedure is structured as such to make money from the honest citizens. i always loved cars and even when i lived in manila i acquired an untaxed mini which was hidden in a container van. i went to the BOC to ask if i could voluntarily pay for the tax. there were bored employees sitting employees doing nothing in their desks. one of them told me that the amnesty period was over and that i could not pay so i guess that was the reason why they had nothing to do. i was offering them tax collection and they rejected it.
for D. mihalia let’s know and accept the country with it’s right and wrong, just like true, ACCEPT na lang love mo kasi. that’s why noynoy is president because people HOPE for a change. well HOPEFULLY IN OUR LIFETIME. it will not be overnight. you know the song it is better to light one little candle than to stumble in the dark.
for francis. WHAT? there hundreds or over a thousand surplus shops in the philippines for motors unless you mean an outdoor motor for a speed boat.
A PONTIAC in the philippines? a gas guzzler and it’s not really ammmm handsome? gas is expensive, you will learn it eventually. have you heard of toyota?
so my plan, import the car of my choice be ready for tax and LAGAY!as they say there are several gates as you leave manila north be ready, kasi love mo car mo. mahal ko ang pilipinas, lupa kong sinilangan, alam ko hindi ito perpecto, sana makita ko ang araw na kung walang corrupt walang mahirap. till that time ride lang tayo kung gusto mo ng imported car. OK