Buying a car in the Philippines is more than just paying the sticker price or saving up for a downpayment. While financing options such as car loans make ownership more accessible, many first-time buyers are often surprised by the ongoing expenses tied to maintaining a vehicle. Understanding these costs upfront can help consumers make better financial decisions before committing to a purchase.

Fuel remains the most significant recurring expense for any car owner. Consumption varies widely depending on engine type, vehicle size and driving habits. Regular long-distance drives or heavy city traffic can substantially increase fuel costs, as can owning a larger displacement or less fuel-efficient vehicle. Electric vehicles also incur costs through charging, which, while generally lower than gasoline, still forms part of a household’s monthly expenses. A good way to estimate fuel or charging costs is to review your average daily mileage, check your vehicle’s consumption rate and multiply it by current fuel or electricity prices.

Preventive Maintenance Service (PMS) and repairs are the next largest costs. Most new cars include warranties and free services for an initial period or mileage threshold, but owners must prepare for periodic check-ups, oil changes, brake inspections and other mechanical upkeep once the free service window ends. Consumers can estimate these expenses by checking their car’s recommended maintenance schedule and requesting a service quotation from the dealership or an independent shop. Ignoring maintenance can lead to breakdowns and higher repair bills over time.

Insurance is another major consideration. In the Philippines, comprehensive car insurance protects against accidents, theft and natural disasters. Premiums vary based on the vehicle’s age, value and the owner’s driving record. Some lenders and banks also require comprehensive coverage as part of their loan agreements. When comparing policies, look at annual premiums and deductible amounts, and consider adding special coverage for acts of nature if your area is prone to flooding or typhoons.

Annual registration (after the first three years) with the Land Transportation Office (LTO) is mandatory. Fees are based on vehicle classification and engine displacement, and owners must also budget for emission testing or additional compliance costs. Beyond these, car owners should consider smaller recurring costs such as tolls, parking, car wash services and detailing. These may seem minor individually but add up over time. Tracking your monthly expenses for these items for a few weeks can give you a more accurate picture of the total cost.

Metrobank has recently promoted its “Happy Holideals” campaign to make car ownership more affordable. Under this limited-time offer, applicants can save up to ₱100,000 on fees such as Security Interest, Registration Fee, Documentary Stamp Tax and Notarial Fee. The bank also offers car loan interest rates starting at 8.70 percent per annum, alongside free first-year insurance from AXA Philippines for approved loans. Applications are open until October 15, 2025, through Metrobank branches or online at their website.

This combination of financial incentives and accessible online application aims to ease the financial burden of car ownership. Still, even with such offers, prospective buyers are encouraged to plan for the full cost of ownership including fuel, maintenance, insurance and other recurring fees to ensure their new vehicle remains affordable in the long run.