Cheapest Brand New Car In The Philippines 2020: Your Guide to Affordable Mobility

Cheapest Brand New Car In The Philippines 2020: Your Guide to Affordable Mobility cars.truckstrend.com

The dream of owning a brand new car in the Philippines is a shared aspiration for many, symbolizing independence, convenience, and a step up in life. However, for a significant portion of the population, this dream often collides with the reality of tight budgets and rising costs. In 2020, amidst a dynamic economic landscape and evolving consumer needs, the quest for the "cheapest brand new car" became more relevant than ever. It wasn’t just about finding the lowest price tag; it was about identifying vehicles that offered genuine value, reliability, and practicality without breaking the bank.

This comprehensive guide aims to navigate the landscape of affordable brand new cars available in the Philippines in 2020. We will delve into the factors that influenced pricing, the key considerations for budget-conscious buyers, spotlight the top contenders in the entry-level segment, and provide actionable advice to help you make an informed decision. Whether you were a first-time car buyer, a growing family, or simply seeking an economical daily driver, understanding the options available in 2020 was crucial to unlocking the dream of brand new car ownership.

Cheapest Brand New Car In The Philippines 2020: Your Guide to Affordable Mobility

Understanding the Philippine Car Market in 2020 for Budget Buyers

The year 2020 presented a unique context for the Philippine automotive market. Before the full impact of the global pandemic hit, the market was largely stable, characterized by intense competition among manufacturers. This competition, coupled with the implementation of the TRAIN Law (Tax Reform for Acceleration and Inclusion) in previous years, which adjusted excise taxes on vehicles, had already reshaped pricing strategies. While luxury vehicles saw significant price increases, entry-level and locally assembled models often became more competitive.

For budget-conscious buyers, this meant a growing focus on the subcompact and city car segments. These vehicles, designed primarily for urban driving, offered compact dimensions, fuel efficiency, and a lower barrier to entry in terms of upfront cost. Manufacturers recognized the vast market for affordable mobility solutions, leading to the introduction of new models and aggressive pricing for existing ones. The emphasis shifted from luxury and power to practicality, running costs, and accessibility. Understanding these underlying market dynamics was the first step in identifying true value in 2020.

Key Considerations When Buying the Cheapest Brand New Car

Purchasing the cheapest brand new car is more than just looking at the sticker price. A truly smart purchase involves a holistic evaluation of various factors that contribute to the overall cost of ownership.

1. Beyond the Sticker Price: The Total Cost of Ownership

   • Down Payment and Monthly Amortization: While the cash price is attractive, most buyers opt for financing. Factor in the required down payment (typically 15-30% of the vehicle’s price) and the subsequent monthly amortization over 3 to 5 years. Interest rates from banks or in-house financing can significantly affect the total amount paid.
   • Interest Rates and Loan Terms: Shop around for the best interest rates. Even a slight difference can save you thousands of pesos over the loan term. Longer loan terms mean lower monthly payments but higher total interest paid.

   

   • One-Time Costs: Don’t forget registration fees, LTO (Land Transportation Office) charges, and Chattel Mortgage fees (for financed vehicles), which can add a few tens of thousands of pesos to the initial outlay.

2. Operating Costs: The Ongoing Expense

   

   • Fuel Efficiency: This is paramount for budget cars. A car that costs less upfront but guzzles fuel will be more expensive in the long run. Look for models with small, efficient engines.
   • Maintenance and Parts Availability: Research the cost of regular preventive maintenance service (PMS) and the availability/affordability of spare parts. Brands with a wide dealership network and locally manufactured/assembled models often have cheaper and more accessible parts.
   • Insurance: Comprehensive car insurance is mandatory for financed vehicles and highly recommended for all new cars. Get quotes from different providers to find competitive rates.

3. Features vs. Price: What to Expect

   • Entry-level models prioritize affordability, meaning basic features are standard. Expect manual windows, simpler infotainment systems (often just a radio with USB/AUX), steel wheels with hubcaps, and fundamental safety features like dual airbags and ABS.
   • Higher variants of the same model will offer more features (power windows, touchscreens, alloy wheels, more airbags, parking sensors), but these come at a higher price point. Decide which features are "must-haves" and which are "nice-to-haves" to stay within budget.

4. Resale Value:

   • While you’re buying new, consider how well the car might hold its value. Popular brands with a reputation for reliability and readily available parts generally have better resale value. This is important if you plan to upgrade in the future.

Top Contenders: The Cheapest Brand New Cars in the Philippines (2020 Models)

In 2020, the entry-level car segment was dominated by several strong contenders, each offering a unique proposition for budget-conscious buyers. Here are some of the most prominent models:

1. Suzuki S-Presso:

   • Overview: Launched in late 2019/early 2020, the S-Presso quickly became the darling of the budget segment. Its mini-SUV styling, high ground clearance, and incredibly attractive price point made it a standout.
   • Key Features (Base Model): K10B 1.0L engine, 5-speed manual transmission, dual airbags, ABS, rear parking sensors. Basic but functional interior.
   • Target Buyer: First-time buyers, young professionals, small families looking for an urban daily driver with a distinctive look.

2. Mitsubishi Mirage/Mirage G4:

   • Overview: A long-standing favorite in the subcompact segment, the Mirage hatchback and its sedan counterpart, the Mirage G4, consistently offered reliable and fuel-efficient mobility.
   • Key Features (Base Model): 1.2L MIVEC engine, 5-speed manual transmission, dual airbags, ABS. Known for its spacious interior for its class and proven reliability.
   • Target Buyer: Practical individuals, small families, ride-hailing drivers looking for a dependable and economical car with good cabin space.

3. Toyota Wigo:

   • Overview: Toyota’s entry into the city car segment, the Wigo, leveraged the brand’s reputation for reliability and strong resale value. It’s a no-nonsense, easy-to-drive urban vehicle.
   • Key Features (Base Model): 1.0L engine, 5-speed manual transmission, dual airbags, ABS. Simple, robust, and designed for city maneuverability.
   • Target Buyer: Brand-loyal Toyota enthusiasts, first-time car owners who prioritize reliability and ease of maintenance.

4. Kia Picanto:

   • Overview: The Picanto offered a stylish and surprisingly refined option in the city car segment, appealing to those who wanted a bit more flair without a hefty price tag.
   • Key Features (Base Model): 1.0L engine, 5-speed manual transmission, dual airbags, ABS. Often praised for its European design cues and comfortable ride.
   • Target Buyer: Style-conscious urban dwellers, young professionals seeking a compact yet fashionable daily driver.

5. Hyundai Reina:

   • Overview: Positioned as an affordable subcompact sedan, the Reina aimed to capture buyers looking for a more traditional sedan form factor at a competitive price point.
   • Key Features (Base Model): 1.4L engine, 5-speed manual transmission, dual airbags, ABS. Offers a decent boot space and comfortable ride.
   • Target Buyer: Small families, individuals who prefer the practicality of a sedan’s trunk space, and those looking for a slightly more powerful engine in the budget segment.

Practical Tips for Securing the Best Deal

Buying the cheapest car doesn’t mean settling. With smart strategies, you can maximize your value.

1. Do Your Homework: Thoroughly research models, compare specifications, and read reviews. Understand what features are standard in the base variants of your target cars.
2. Visit Multiple Dealerships: Don’t settle for the first offer. Dealerships often have different promotions, financing options, and sales targets. Visiting 2-3 dealerships for the same model can give you leverage for negotiation.
3. Negotiate Smartly: Focus on the "all-in" price, which includes the vehicle, LTO registration, chattel mortgage, and insurance. Ask for freebies (tint, matting, early warning device) or discount on accessories.
4. Look for Promotions: Car manufacturers and dealerships frequently offer cash discounts, low down payment schemes, or low monthly amortization plans, especially during year-end sales or specific campaigns. Keep an eye on these.
5. Test Drive: Always test drive your shortlisted vehicles. This is crucial for evaluating comfort, handling, engine performance, and overall driving experience. The cheapest car isn’t worth it if you’re uncomfortable driving it daily.
6. Understand the Contract: Before signing any papers, meticulously read the financing agreement, sales invoice, and other documents. Clarify any terms you don’t understand, especially regarding interest rates, penalties, and payment schedules.
7. Consider After-Sales Service: Research the reputation of the brand’s after-sales service, the availability of service centers near you, and the cost of routine maintenance. A good after-sales experience can save you headaches and money in the long run.

Challenges and Solutions for Budget Car Ownership

While buying an affordable car is a great start, there can be some challenges associated with entry-level models.

• Challenge: Limited Features & Basic Aesthetics. Base models often lack the bells and whistles of higher variants.
  • Solution: Focus on functionality. For aesthetics, consider affordable aftermarket accessories like window tint, seat covers, floor mats, or a basic car stereo upgrade if it doesn’t come with Bluetooth. Prioritize safety and reliability over advanced tech.
• Challenge: Perceived Durability & Quality. Some buyers worry that cheaper cars might not be as durable.
  • Solution: Modern entry-level cars from reputable brands are built to withstand daily use. Adhere strictly to the manufacturer’s preventive maintenance schedule. Drive responsibly, and address any minor issues promptly to prevent them from escalating.
• Challenge: Space Constraints. City cars are compact, which might be an issue for larger families or frequent cargo hauling.
  • Solution: Smart packing and organization can maximize interior space. For occasional larger loads, consider foldable rear seats or external roof racks (if compatible). For families, carefully evaluate the rear passenger space and trunk capacity during your test drive.
• Challenge: Financing Hurdles. Securing a loan can be difficult for individuals with limited credit history or unstable income.
  • Solution: Work on building a good credit score. Explore various financing options, including bank loans (often with lower interest rates), in-house financing from dealerships, or even cooperative loans. Having a co-maker can also help in securing approval.

Price Table: Cheapest Brand New Cars in the Philippines (2020 Entry-Level Models)

Below is a table summarizing some of the cheapest brand new car models available in the Philippines in 2020, focusing on their entry-level variants. Please note that prices are approximate starting prices from 2020 and could vary based on dealership promotions, location, and specific variant features.

Car Model	Variant (Cheapest)	Starting Price (PHP – 2020 Approx.)	Engine Type	Transmission	Key Feature(s)
Suzuki S-Presso	GL MT	P 519,000	1.0L K10B	5-Speed Manual	Mini-SUV Styling, High Ground Clearance
Mitsubishi Mirage	GLX MT	P 699,000	1.2L MIVEC	5-Speed Manual	Fuel Efficient, Roomy Interior
Mitsubishi Mirage G4	GLX MT	P 737,000	1.2L MIVEC	5-Speed Manual	Fuel Efficient Sedan, Practical Boot Space
Toyota Wigo	1.0 E MT	P 568,000	1.0L 1KR-VE	5-Speed Manual	Toyota Reliability, City Maneuverability
Kia Picanto	1.0 LX MT	P 590,000	1.0L MPI	5-Speed Manual	Stylish Design, Refined Ride
Hyundai Reina	1.4 GL MT	P 683,000	1.4L MPI	5-Speed Manual	Affordable Sedan, Spacious Cabin
Changan Alsvin	1.4L MT	P 629,000	1.4L BlueCore	5-Speed Manual	Value-for-Money Sedan, Feature-Rich (for price)
MG 5	1.5L Core MT	P 657,800	1.5L VTi	5-Speed Manual	Spacious Interior, Aggressive Pricing

Frequently Asked Questions (FAQ)

Q1: Is it wise to buy the cheapest brand new car?
A1: Yes, it can be a very wise decision, especially for first-time buyers or those on a strict budget. It provides access to new car reliability, warranty coverage, and the latest safety standards, often with lower maintenance costs compared to older used cars. The key is to choose a model that meets your essential needs and offers good long-term value.

Q2: What are the typical monthly payments for these cars?
A2: Monthly payments vary significantly based on the car’s price, down payment amount, loan term (e.g., 3, 4, or 5 years), and interest rate. For a car costing around P600,000 with a 20% down payment over 5 years, monthly payments could range from P10,000 to P12,000, depending on the interest rate and other charges.

Q3: Do these cheapest cars come with good safety features?
A3: In 2020, even the cheapest brand new cars were generally equipped with essential safety features mandated by law, such as dual front airbags and an Anti-lock Braking System (ABS). Higher variants or more recent models might add features like Electronic Brakeforce Distribution (EBD), rear parking sensors, or even a reverse camera. Always check the specific variant’s safety features.

Q4: Can I get these cars on installment without a huge down payment?
A4: Yes, dealerships frequently offer low down payment schemes (e.g., 15% or even lower during promotions) to make car ownership more accessible. However, be aware that a lower down payment usually results in higher monthly amortizations and higher total interest paid over the loan term.

Q5: What’s the fuel efficiency like for these entry-level cars?
A5: Fuel efficiency is one of the strongest selling points of these budget-friendly cars. With small engines (typically 1.0L to 1.5L) and light curb weights, they are designed to be very economical. Expect city driving consumption to be around 10-15 km/L and highway driving to reach 18-25 km/L or even higher, depending on the model and driving conditions.

Q6: Are spare parts readily available for these affordable models?
A6: For popular brands like Toyota, Mitsubishi, Suzuki, and Kia, spare parts are generally readily available through their extensive dealership networks and aftermarket suppliers. Newer brands like Changan and MG have been working to expand their parts availability, but it’s always wise to inquire with the dealership about this before purchasing.

Conclusion

In 2020, the landscape for brand new car ownership in the Philippines offered viable and attractive options for budget-conscious buyers. The "cheapest brand new car" was not just a label but a gateway to practical, reliable, and economical mobility for thousands of Filipinos. By focusing on total cost of ownership, understanding key considerations beyond the sticker price, and leveraging smart buying strategies, consumers could successfully navigate the market.

Whether it was the urban adventurer Suzuki S-Presso, the dependable Toyota Wigo, or the practical Mitsubishi Mirage G4, each contender offered a compelling reason to consider it. The decision to purchase an entry-level brand new car is a testament to prioritizing essential needs and smart financial planning. It reinforces the idea that owning a car doesn’t have to be an unattainable luxury; with careful research and informed choices, the dream of driving home a brand new vehicle was very much within reach in 2020.