Philippines Used Car Market- Analysis And Forecast 2026

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Increased Used Car Awareness: The awareness and marketing in used car market of Philippines has played an important role in changing customer’s mentality from buying a new car to a used car. Social media platforms such as Facebook has now emerged as a viable platform to deal in used cars and make people aware about the certified used cars, merits of buying a pre-owned unit and others. The recent development in increase usage of social media websites have really helped the unorganized/ C2C market of used cars in Philippines as it is free medium to market an individual unit among friends and family.

Focus on Value-Added Services: Large number of dealerships and online platforms are offering value-added services such as online car evaluation, certification, vehicle inspection, financing, insurance and ownership transfer amongst others so as to enhance their margins and provide a hassle-free experience to the buyers.

Emergence of Classifieds and Online Auto Portals: Currently many companies are using omni-channel strategy to reach out to the customer. This type of channel is useful as digital presence is an important parameter to improve the customer penetration while the physical presence helps in building of trust of the customers. Currently, the small multi brand used car retailers have started to operate their own Facebook pages in order to increase their reach to the correct audience.

The customer uses both digital and physical channel simultaneously in order to find the best product according to their needs. The online auto portals and classified pages let the used car dealer/ individual seller to list their vehicle on their web page for a certain period of time after the payment of listing fees. The vehicles are listed on these portals in order to increase the probability of the vehicle getting sold.

Impact on Used Car Sales due to Covid-19: The strict lockdown measures in the initial few months (March – May) led to the steep decline in the market. Multiple trends in the used cars industry were observed since the onset of Covid-19. Moreover, ~ 2 million Filipinos lost their jobs due to the pandemic. These car buyers were unable to pay the back the entire auto loan amount and the banks had to forfeit their cars. This led to an increased supply of bank repossessed cars in the market. The demand for used cars was on the upswing once the lockdown was lifted. The increase in the sales in the following months was sufficient to compensate for the losses incurred during the ECQ months. The used car market declined by only 4% in 2020 as against the new car market which fell by a whopping 40%.

Adoption of Latest Technologies to enhance Digital Experience: Leveraging technologies such as Artificial Intelligence & Virtual Reality is expected to enhance the digital experience for consumers by offering 360° interior & exterior view of the car, estimating car price online via uploaded images, analysing consumer behavioral insights to show relevant ads according to interests & more.

Analysts at Ken Research in their latest publication – “Philippines Used Car Market Outlook To 2026 (Third Edition): Driven by the Pandemic Incited New Opportunities for Used Car Dealers and Increased Penetration in the Online Space for Used Car Transactions” observed that used car market in Philippines is expected to grow in the future, with the increased awareness on health and hygiene followed by the onset of COVID-19. The demand for used cars in the market is expected to increase as the real inflation in the country is increasing year on year and the citizens are left with little cash at disposal. The increasing credit appetite of banks fueled by competition from foreign financing companies would provide a boost to the industry. The competition is expected to increase within dealerships as customers would either approach a DDSA or multi brand dealer over another individual used car seller. The Philippines Used Car Market is expected to grow at a CAGR of 7.6% on the basis of GTV (Gross Transaction Value) over the forecast period 2021P-2026F.

Key Segments Covered

By Market Structure
Organized
Unorganized
By Sales Channel (Organized Segment)
Multi-brand Dealers
Direct Dealership Sales Agents
Bank Repossessed Cars
By Source of Lead generation (Organized Segment)
Online
Dealership walk-ins
By Average Ticket Size
Less than PHP 100,000
PHP 100,000-300,000
PHP 300,000-500,000
PHP 500,000-700,000
PHP 700,000-1,000,000
More than PHP 1,000,000
By Region
Metro Manila
Northern Luzon
Southern Luzon (except Metro Manila)
Visayas
Mindanao
By Type of Vehicle
Sedan
SUV
Hatchback
Pickup Vans
MPV
Others (convertibles, coupe, crossover, sports vehicles, etc.)
By Fuel
Gasoline
Diesel
Others (Hybrid and Electric)
By Type of Vehicle Manufacturer
Japanese
Korean
American
Chinese
German
British
Others
By Brand
Toyota
Mitsubishi
Hyundai
Ford
Nissan
Honda
Isuzu
Suzuki
Others (Kia, Mazda, Mercedes, Audi, etc.)
By Average Replacement Period
Less than 2 years
2-4 years
4-6 years
6-8 years
More than 8 years

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By Mileage
Less than 10,000 Kms
10,000-20,000 Kms
20,000-50,000 Kms
50,000-75,000 Kms
75,000-100,000 Kms
Above 100,000 Kms

Companies Covered

OEM Dealerships
Toyota Certified
Nissan Intelligent Choice
BMW Premium Selection
Mercedes Benz Certified Pre-owned
Banks (Repossessed Car Auctions)
EastWest Bank
Security Bank
BDO Unibank
Online Portals – Online Auto Classified Platforms
Carmudi
Carousell
AutoDeal
Automart
Zigwheels
Philkotse
Multi-Brand Dealers
Carmax
Carmix (by Lausgroup)
Automobilico
All Cars
Five Aces
Berylle Car Sales

Time Period Captured in the Report:-

Historical Period – 2016-2021P
Forecast Period – 2021P-2026F

Key Topics Covered in the Report

Executive Summary
Research Methodology
Philippines Used Car Market Overview
Philippines Used Car Market Size, 2016-2021P
Philippines Used Car Market Segmentation, 2021P
Growth Drivers in Philippines Used Car Market
Issues and Challenges in Philippines Used Car Market
Government Regulations
Ecosystem and Value Chain of Used Car Industry in Philippines
Customers Purchase Decision Making Parameters
Cross Comparison between Major OEMs and Multi-brand Dealers and Company Profiles & Product Portfolios
Snapshot on Online Used car market
Philippines Ancillary Services Market
Future Market Size and Segmentations, 2021P-2026F
Covid-19 Impact on the Industry & the way forward
Analysts’ Recommendations