For many Filipinos, buying a car is one of life’s biggest milestones. It’s a reward for hard work, a marker of success, and a symbol of independence. But too often, buyers focus only on the sticker price—and forget that the true cost of owning a car runs far deeper.
According to Marion Evangelista, a Registered Financial Planner (RFP), overlooking hidden costs can turn a dream car into a financial drain. In an interview with Financial Adviser PH, he explained:
“The purchase price is only the beginning. Fuel, maintenance, insurance, and after-sales service all add up. If you don’t plan for these, your car can quickly feel more like a liability than a reward.”
Here are the hidden costs every Filipino car buyer should factor in.
Fuel Efficiency Isn’t Always What It Seems
Many buyers assume small engines mean lower costs. But Evangelista warns this isn’t always the case.
“A 1.0-liter car may look fuel-efficient on paper, but if you’re carrying five adults or heavy cargo regularly, the engine works harder—and consumes more fuel,” he explained.
Similarly, multi-purpose vehicles (MPVs) with small engines may struggle under load. “Don’t just look at the brochure. Match the engine to your actual usage,” Evangelista said.
Maintenance and Repairs Can Surprise You
Every car needs regular servicing, but not all brands are equal when it comes to maintenance.
“Some brands have parts that are difficult to source locally. That means longer waiting times and higher costs,” Evangelista said. “A cheaper purchase price can lead to bigger expenses if parts aren’t readily available.”
He recommends choosing a brand with accessible service centers near your home or office. “It’s not worth saving ₱50,000 upfront if you’ll drive 30 kilometers for every oil change,” he added.
Insurance Costs Vary Widely
Insurance premiums are often overlooked when calculating affordability.
“Newer or higher-end models will naturally cost more to insure. But age also matters—cars older than 10 years may struggle to get comprehensive coverage,” Evangelista explained.
He advises buyers to request quotes from multiple insurers before finalizing their purchase. “Don’t assume insurance will be affordable just because the car is,” he said.
Comfort Features Save Money in the Long Run
While some features may seem like luxuries, Evangelista points out that certain conveniences can reduce hidden costs.
“Reverse cameras and parking sensors help avoid accidents that could cost thousands in repairs. Fog lamps improve safety on dark or rainy roads. Even USB ports and reliable air conditioning reduce stress and improve the ownership experience,” he said.
By contrast, purely cosmetic features—like spoilers or fancy wheel designs—don’t add long-term value. “They inflate the price without improving safety or comfort,” he cautioned.
After-Sales Service Makes or Breaks the Deal
Evangelista emphasizes that buying a car is like entering a long-term relationship.
“The sale is just the beginning. You’ll deal with the brand and dealership for years through servicing and repairs,” he said. “If customer service is poor or parts are hard to get, ownership costs rise quickly.”
He recommends testing the dealership’s professionalism during your visit. “Are the staff approachable and professional? Do they handle service requests efficiently? These things matter more than flashy marketing,” he noted.
Final Takeaway
For Evangelista, the key to smart car ownership is seeing beyond the price tag.
“Buying a car is like planting a tree. The upfront cost is just the seed—you also need to budget for water, soil, and care. Otherwise, the investment won’t grow the way you expect,” he told Financial Adviser PH.
In the end, the true value of a car isn’t just in the purchase price—it’s in how well it fits your lifestyle, protects your wallet, and supports your long-term financial goals.
