Cost of Owning a Car in the Philippines 2015

October 6, 2015 | Posted by: Carlo Miguel Castañeda | Car Insurance

October 6, 2015


Cost of Owning a Car in the Philippines


That new car smell really gets the blood going for a lot of people. As amazing as that feeling can be, there are times when you forget to calculate the total costs.
There’s not just the cost of a car to consider, you also need to take into account the costs of car insurance, driving skills, acquiring a license. After that, there are also the recurring expenses for your car – particularly when you’re getting ready for road trips, or just driving around in the city.
Fuel, parking, the cost of insurance, and LTO renewal are the top costs you’ll have, along with the loan you may have taken out in order to finance the purchase. Let’s take a look at the annual cost of owning a car in the Philippines for 2015:
Annual Cost of Owning a Car Infographic
Of course, the cost will vary depending on how you use you car, and you can cut costs by comparing insurance policies with

Infographic Text:

The costs of your car don’t end when you drive it off the lot. Take a look at the annual expenses involved with owning a car in the Philippines, based on a sedan worth Php 600,000.


Fuel is one of the biggest expenses involved with your car. Currently, diesel prices hover around Php 25/liter, with gasoline at Php 41/liter. This expense will vary on how much you drive and how much fuel you use.
Average Total Cost:
(Gasoline) Php 41.50 x 2.8 liters x 365 days = Php 42,413


Parking can be trickier. If you’re lucky, you’ve got a spot in the building that you work in. Otherwise, you’ll have to park in surrounding parking structures, and that can be just as costly. The average parking fee is around Php 150 for a full eight hours.
Average Total Cost:
Php 150 x 20 Working Days x 12 Months = Php 36,000

LTO Registration

If you want to be able to drive your new car around, this is a necessity. Renewal is once a year, and generally doesn’t cost so much.
Average Total Cost:
Php 950 (CTPL) + Php 410 (Emission Testing) + Php 1,974.06 (Car Registration) = Php 3,334.06

Loan Interest

Being able to afford Php 600,000 for a car from the get go is rare. So if you want a car, you’ll have to take out a loan. Assuming a 20% down payment for a 36-month term, you’ll be paying at least Php 72,000 in interest throughout the life of your loan, depending on your bank.
Average Total Cost:
Php 24,000


Comprehensive coverage premiums will vary between providers, but for a typical sedan, you’ll be spending an average of Php 20,000. Of course, you can compare providers on to get the lowest rate with the covers you want.
Average Total Cost:
Php 20,000

Repairs and Maintenace

This may be one of the more variable costs to 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
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 on these, as the money you pay goes a long way to ensuring your safety and the safety of anyone else in the car with you. However, it’s possible to save by comparing your options, and you can start with your car insurance.

Php 130,747.06