Philippines is the 46th largest economy in the world. In developing countries like the Philippines, used car started late, but develops faster. Japan is the major trading partner of Philippines. The country is one of the major importers of Japanese used cars. Along with Japan, used cars from Korea are also imported in the Philippine. The automobile sector of the country is growing, with the growing infrastructure, road network and political stability.
Philippines prefer to buy Japanese vehicles as depreciation of these vehicles are much less than that of vehicles manufactured by other automakers. They are known for more dependability and reliability. Day by day the popularity and the market of Japanese used vehicles is increasing tremendously. Every day, thousands of used vehicles are exported from Japan to various countries across the world. Used vehicles from Japan are generally in good condition, reasonably priced, and it is quite easy to find spare parts of Japanese vehicles.
While importing a used vehicle, importer should know and follow import regulations to avoid any problems during customs clearance. It is not allowed to import a used vehicle in Philippines unless the importer is a returning Filipino or a former Filipino citizen who has stayed abroad for more than a year or an immigrant to the country (must hold a 13G Visa duly issued by the Bureau of Immigration and Deportation). Importation of only left hand drive vehicles is allowed in the country.
The vehicle imported should be used for personal use and should be registered in the name of returning resident or immigrant for at least six months prior to importation. Plus the vehicle cannot be resold for at least three years once imported. Gasoline-fueled cars limited to 2,800 cc not over 1,500 kg. Vehicles imported should match with country’s safety and emission standards. Used vehicles imported in the country are subject to 40% Customs duty, 10% VAT and Ad Valorem Tax from 15% to 100% depending on its piston displacement.
With the increasing prices of new vehicles, buyers are finding better value in pre-owned market, thus resulting in higher demand for used vehicle market. There are huge opportunities for used vehicle exporters to invest in the Philippine market, as the used car market in the country is stable and growing with a rapid pace. Since it is a developing nation, the market is efficient and not very competitive. So, to increase business, dealers prefer to import and sell used vehicles in the country.