Bank repossessed cars and bank vehicle lots are a great source of good quality used/ second-hand/ pre-loved/ pre-owned vehicles - cars, motorcycles and trucks alike. In fact, a lot of these bank lots in the Philippines are such a treasure-trove that many used car dealers get their supply from the banks. They'd fix the car's issues, bring them to more accessible, high-traffic lots and then sell them for a good profit.
If you're looking for a bargain car in the Philippines, then read on to know how to successfully buy used, bank repossessed cars!
Automart.Ph has hundreds of good quality repossessed cars that are being sold cheaply, so do check them out at https://automart.ph.
Where do repossessed cars come from?
Repossessed cars mostly come from owners who took out loans from banks or financing institutions to purchase the cars. For one reason or another, they’re unable or unwilling to pay their amortization and so they must return their cars to the banks – thus the banks put them in their repossessed cars inventory. Through a Philippines court order, banks are then legally able to sell the repossessed cars or used cars to another buyer.
Some things worth noting:
- Voluntarily returned – Around 80% of these cars are voluntary returns. They weren’t abused, are in decent running condition. The owners just decide not to pay anymore, and so return the vehicle.
- Some are lemons – Unfortunately, you do have to worry about the 20% bad lemons, where the repossessed cars and vehicles might’ve been flooded, been in a serious accident, the owners removed or replaced parts prior to returning, or the banks had to resort to “extra” measures to get the car bank including breaking a window, towing, etc. These drastically lower the car’s value and usability – so make sure you’re getting one from the 80%, not these 20%. Bringing a trusted mechanic or someone knowledgeable about cars can help you pick the right car. Automart.Ph can also help you by giving your car a 200-point inspection for a small fee.
- Pick the best banks – banks that most actively give car loans will mathematically have the most repossessed cars in their inventory, so go there for the widest selections. BDO, East West and PSBank have pretty wide inventories to choose from. Automart.Ph has a partnership with BDO, so we can sell all their inventory and can even help you get your bank financing.
How to Buy a Repossessed Car in the Philippines
Different banks will have slightly different processes, but in the Philippines, they all generally follow the same trend. Automart.Ph has partnered with BDO, and this is their process. Most banks that we’ve talked to have very similar processes.
- Get their current selling inventory – Repossessed car inventory moves fast, and most banks hold sales or auctions on a weekly basis. Be sure you get their latest list so you know what used cars and repossessed cars are in play. They are available on their websites. We have the list of bank website links below, for your easy reference.
** We wish we could tell you that banks update their inventory quickly, but some do not. Sometimes it’s best to call for the latest list that they can email you. We also have a list of the banks’ phone numbers.
- Shortlist and view the cars – Before going for viewing, it’s best to shortlist the ones you’d like to view. There will be hundreds of repossessed cars on the list, and it’s impossible to inspect them all. Take note of their brand, model, year, color and plate number to make it easy for the maintenance folks to help you. All banks will allow you to view the cars and start them to ensure the engine works fine. Go during their office hours. When we went there at lunch time, we normally had to wait a few mins – but it wasn’t too bad.
- Bid on the car or Buy it Now – By now you’ve found your dream car. What’s next? Well, some banks offer two different prices: the Buy Now Price and the Floor Bid Price.
Buy Now Price – When you agree to pay this price, the bidding process ends and YOU WIN IMMEDIATELY! Of course, it’s normally a premium price as opposed to the Floor Bid Price. Pay this if you really want the car and want to secure it, and you think there’ll be a lot of competition for it.
Floor Bid Price – This is the minimum bid price the bank will accept for the repossessed car. I suggest you bid slightly higher than this price, and use a non-round number, since banks use a sealed bidding process. Example: if the floor bid price is P100,000, bidding P100,811 gets you a better chance than bidding exactly P100,000 or bidding P100,500. We’ve seen winning bids around P800 higher than the floor price. Keep in mind that if someone pays the buy now price, you’d still use.
Complete and Submit Application Form and the Bid – Banks will normally have you fill out a 2-page document asking for a lot of details. This is a Bangko Sentral ng Pilipinas requirement to “know your customer”, “KYC”. Generally speaking, KYC is easier if you’re buying as an individual vs as a corporation. The latter requires secretary’s certificates, authorities to transact, etc.
BDO and East West follow a sealed envelope bid process. Write your bid on a piece of paper and place it inside an envelope, which bank officials will open and compare with other bids for the same car.
Give a Refundable Bid Deposit Check– Banks like BDO and East West Bank will ask you for a P10,000 check payable to them, to secure your bid. They do this just to make sure you won’t back out of buying if you do win. These banks will normally not deposit this check unless you win and then change your mind. If you don’t win, you can get the check back (or just let it lapse). Note that if you apply and are denied bank car loan financing to buy your car, most banks will not hold you to the purchase, and will not deposit your P10,000 check – so that’s not something you need worry about.
(Optional) Apply for Car Loan or Financing – If you need a car loan or financing to purchase your repossessed or used car, it’s best to apply at this point, even before the bidding ends. See our comprehensive guide to car loans here. This will cut down in the time until you get your vehicle. Banks will generally have the same requirements: identification documents of you and your spouse, and proof that you can pay (employment certificate and pay slips/ BIR forms if you’re employed or business permits and BIR tax returns if self employed, for example). We’ll have a more comprehensive article on this soon.
The car loan application form is a separate form from the buying application form we talked about in #4. Submit this together with the documents required. The sooner the better. It normally takes a bank 2-3 days to process a complete application package, and give you an approval (hopefully).
Wait to Win – For BDO and East West Bank, the sealed envelopes get opened Wednesday afternoon, and you’re normally called or emailed by Thursday morning if you win. If you do win, then congratulations! Now we’ll need to pay for it and get the car. If you use Buy Me Now, you don’t need to wait for Wednesday and just need to wait for approval (approx 2-3 days).
- Pay the Balance – Whether you pay for the repossessed car via cash or financing, you’d need to pay the balance at this point. The bank officer will guide you through this process, and it’s generally very simple, so nothing to worry about. Payment may be done at any bank branch. Once you pay, you can normally get the car on the same day. Note that you’ll be given an official receipt for your payment at this point.
- Get the car – For both BDO repossessed cars and East West repossessed cars (and perhaps other banks as well?), the used cars will be ready for pick-up the Monday after. You’d need to get clearances and authority to get the car, before the security guards allow you to bring the repossessed car out. Coordinate everything with the bank officer before going to the lot, so that you don’t waste a trip.
- Get all the papers – Upon the release of the car and issuance of gate pass, you’ll normally be given a photocopy of the OR and CR already. You’ll also be given a Deed Of Absolute Sale (DOAS) that you’ll need to sign, get notarized and returned to the bank.
After you give a notarized copy of the DOAS, it will “officially” take seven (7) banking days for the bank to release the original copies of the OR and CR. These are normally available at the bank’s head office (ask the bank officer for when/ where the releasing will be).
For BDO, if it will be difficult for you to pick up the original documents from the head office, you can request for the bank to transmit it to the nearest BDO bank branch. We are unsure of other banks’ processes as of time of writing.
- Transfer the title – Now that you have all the papers, it’s time to transfer the title to your own name. This involves going to the Philippine Land Transportation Office (LTO) and the Philippines Registrar of Deeds. We’ll tell you more in another blog post – soon!
Pro-tips on buying a repossessed car
Unlike buying from a dealer, there’s perhaps a bit more effort involved in buying a repossessed vehicle here in the Philippines – but the rewards can be worth it. Here’s a few steps:
- Set the appropriate expectations – unlike car dealerships, many bank car lots have repossessed cars or used cars that are a bit… dusty. That’s because they’ve been waiting until the banks can legally sell the car. There’s a redemption period for the original owner after all. Despite being caked in dust, perhaps without air in the tires or not having charged batteries, some can be diamonds in the rough. A serious interior and exterior detailing, and you could be getting your dream car for half the price!
- Bring a mechanic – if you don’t know how to evaluate a car, bring a mechanic to inspect a car. For a few thousand pesos, he can save you tens of thousands worth of headaches and costs in the long run. It’ll pay off.
- Plan out your day – Some of these used or repossessed car lots owned by banks can be quite far from the center of the city – some can be as far as Batangas or San Pedro Laguna. If you’re from Metro Manila, it’s best to group together visiting the different lots since most are grouped in adjoining provinces (where land is cheaper, so they can have bigger lots).
- Have a shortlist – Download the available list of repossessed cars and other assets from the net (they also have foreclosed houses and lots if interested) – most banks have them and are fairly updated. Know what you’re looking for and take note of the lot numbers. The people in the car lot will be friendly and helpful, but chances are, they won’t go out of their way to volunteer other cars you might like. It’s best to know what you’re looking for. This in itself is an art already.
We have a more comprehensive guide here, if you think you need more info: Buying a used car – a simple guide
- Ask for cars not/ not yet on the list – banks get repossessed cars all the time. Some of them might be coming on to the market soon, but not yet processed or printed (so you don’t see it on your list). Ask the guy for the “soon to come” cars. Who knows? That might be your dream repossessed or used car.
- Make sure all the papers are in order – if there’s one thing you take away from this short article, it’s probably this: make sure all the papers are in order before buying. Many banks will not sell a car until the papers are clear, but some will – just be sure you know what the documents situation is. You’ll need to ask for the Original Receipt, Certificate of Registration, a court order that the bank can now legally re-sell the car to you, and a deed of sale from the bank to you.
- Plan for financing early – when you win a car at an auction, you’ll normally only have 1-3 days to buy the car, so if you’re planning on financing it, get your financing done as early as possible. See comprehensive guide on getting a used car auto loan here.
Is there an easier, cheaper way? Yes, and it's Automart.Ph
OK, so we showed you the difficult, DIY way of buying a car from a repossessed car or used car bank lot.
Automart.Ph has a better, simpler way: use our website! We are the Philippines’ used and repossessed car website, where people can shop and buy used cars and repossessed cars without needing to go to the individual car lots. We provide both car auction and buy me now prices.
We promise A MUCH EASIER and TRUSTED BUYING EXPERIENCE at NO EXTRA COST.
Automart.Ph has partnered with BDO, Avis, Global Dominion, Park & Sell and soon many other banks in the Philippines, so you can easily view and buy a wide assortment of used cars and repossessed cars from your phone or computer. We’ll help and guide you through the entire process at absolutely no extra cost since we take commission from the sellers only.
Check out our inventory and buy your used car through the button below:
Details of Banks with Repossessed Cars in the Philippines
Address: QC: 63-65 Howmart St., Baesa, District 2, Quezon City
Phone: (02) 702-7025 / 702-7037 / 702-7039 / 330-7586
Email: chattelsales@ bdo.com.ph
Lots of inventory. Easy to navigate. Complete information (more or less). There’s a search area if you know exactly what you’re looking for. Incomplete photos. Seems frequently updated.
East West Bank
Address: Keynet Corp Whse 8, Mercury Ave. Bagumbayan, Libis QC (main)
Phone: 464-2549. 464-2550, 464-2547
Sealed bids must be submitted by the coming Wednesday afternoon, inexplicably at their main office in Pasong Tamo Extension, Makati. Starting bids relatively low with no buy now price. Cars generally kept clean and folks accommodating.
Address: 220 Mañalac Avenue, East Service Road, Bagong Tanyag, Taguig
Phone: 632) 370-4017 or (632) 815-9709
Email: (none provided)
Large (largest?) inventory. Look at the PDF files for latest cars. Cars with images are not as updated, so you might miss out. A pretty good, organized system.
Address: not in website
Email add: not in website
Difficult to use their website. Doesn’t seem like their inventory is updated. Generally, I don’t think they want to sell inventory. Probably because it’s their subsidiary PSBank doing the heavy lfiting.
Address: Along Muntinlupa-San Pedro National Highway, Brgy. Nueva, San Pedro City, Laguna (note they have many others)
Phone: (02) 588-3954, 588-3952
Email: (none provided)
They provide a PDF and have sales quarterly where they give away great deals. Probably worth checking their page occasionally.
Address: Cervantes St., Bormaheco Cmpd., Paranaque City (note there are others)
Phone: Chrisline Balute 867-6788 loc. 8995
Email: (none provided)
They have a pdf file of their cars. Odds are, this is more updated, so use this one not the main website.