There are many unknowns that can be involved when buying a used car in the Philippines, but by making careful and informed decisions, you can reduce potential risks and get a reliable vehicle.
Here are some tips to help you protect your rights during the car buying process:
1
Trading with trusted sellers
Try to choose a regular used car dealer, or an individual seller with a good reputation. Avoid dealing with unknown sellers, especially through social media or similar channels.
2
Check Vehicle History
Before purchasing a used car, be sure to check the vehicle's history, including the vehicle's insurance records.
Obtaining a vehicle's insurance records can help to find out if the vehicle has been involved in an accident or other problem. Insurance records may have information about accident claims, or repair history.
3
Beware of transaction fraud
Take care to avoid some of the common fraudulent trading practices, such as paying a deposit or full payment in advance without seeing the actual car.
This is a common scam where the fraudster may ask you to pay in advance for various reasons and then disappear or provide false information.
4
Contract
When buying a used car, the contract is an important legal document that protects your rights and money.
It is highly recommended that you hire an attorney to draft or review a contract to ensure that the transaction is legally compliant, avoids risk and fraud, as well as clearly defines the rights and obligations of both parties, thus preventing unnecessary legal disputes.
5
Verify OR /CR
Confirm that the OR (Official Receipt) and CR (Certificate of Registration) records of the vehicle match those of the LTO (Land Transportation Office).
6
Check if the its pending case.
7
Check if the its being used as collateral
For example, whether it has been used to secure a loan from a bank, etc.