Buying a car feels like a big milestone.
You imagine:
- No more long commute lines
- Easier grocery trips
- School drop-offs without stress
- Family road trips
But after the excitement settles… the real question comes: “Magkano ba talaga ang monthly gastos sa kotse?”
Because the truth is — the car price is just the beginning.
Let’s break down the real cost of owning a car in the Philippines in 2026, especially for families.
Step 1: Monthly Car Amortization (Loan Payments)
Most Filipino families don’t buy cars in cash. It’s usually financed.
Let’s say you’re buying a brand-new 5-seater sedan worth:
₱850,000 – ₱1,100,000
With:
- 20% downpayment
- 5-year loan
Example Computation:
Car price: ₱900,000
Downpayment (20%): ₱180,000
Loan amount: ₱720,000
Estimated monthly amortization (5 years):
₱15,000 – ₱18,000
SUVs (₱1.3M – ₱1.6M) can go:
₱22,000 – ₱30,000 monthly
That’s already a big chunk of income.
Step 2: Car Insurance (Comprehensive Coverage)
Insurance is NOT optional if you’re financing.
Comprehensive Insurance:
₱15,000 – ₱30,000 per year
That’s:
₱1,250 – ₱2,500 monthly (if you compute it monthly)
Insurance cost depends on:
- Car value
- Driver history
- Coverage inclusions
And yes — skipping comprehensive insurance is risky.
Step 3: Gasoline Cost (2026 Estimate)
Fuel prices fluctuate, but here’s a realistic estimate.
Average gasoline price:
₱60 – ₱75 per liter
If you drive:
- 20–30 km daily
- 5 days a week
Monthly fuel cost:
₱4,000 – ₱8,000
If you drive daily + long trips?
₱8,000 – ₱12,000 easily.
Gas is one of the biggest ongoing costs.
Step 4: Maintenance & Repairs
This is where people underestimate.
Regular maintenance includes:
- Oil change
- Filters
- Brake cleaning
- Tire rotation
Average annual maintenance:
₱10,000 – ₱25,000
Monthly equivalent:
₱800 – ₱2,000
Major repairs? That’s extra.
Tires alone can cost ₱15,000+ for a full set.
Step 5: Registration & LTO Fees
Yearly registration:
₱2,000 – ₱5,000
Emission test:
₱500 – ₱1,000
Small amount — but still part of total cost.
Step 6: Parking Fees
If you live in a condo:
Parking rental:
₱3,000 – ₱6,000 monthly
Office parking:
₱2,000 – ₱5,000 monthly
If you have free home parking, malaking tipid.
But city families often pay for parking.
Total Monthly Cost of Owning a Car (Family Example)
Let’s compute a realistic scenario.
Mid-range sedan financed.
Amortization: ₱16,000
Insurance (monthly equivalent): ₱1,800
Gas: ₱6,000
Maintenance (average): ₱1,200
Parking: ₱4,000
Total:
₱29,000 per month
And that’s not luxury — that’s normal city use.
So… How Much Should You Earn to Afford a Car?
A safe rule: Total car expenses should not exceed 15–20% of household income.
If your total monthly car cost is ₱29,000:
Ideal household income:
₱145,000+
If income is ₱80,000?
That same car becomes financially tight.
Brand New vs Secondhand Car (2026 Reality)
Brand New
✔ Lower repair risk
✔ Warranty included
✔ Higher resale value
But higher monthly amortization.
Secondhand
✔ Lower purchase price
✔ Lower loan
But:
- Higher maintenance risk
- No warranty
- Unexpected repairs
Sometimes “cheaper” becomes more expensive long-term.
Hidden Costs Families Forget
- Car wash (₱500–₱1,000 monthly)
- Toll fees
- Unexpected repairs
- Traffic fines
- Accessory upgrades
Little things add up.
When Owning a Car Makes Financial Sense
It makes sense if:
✔ Commute savings outweigh cost
✔ You have stable income
✔ Emergency fund is ready
✔ You plan long-term use
It doesn’t make sense if:
❌ It replaces your entire savings
❌ You’re already struggling with rent
❌ You’re buying out of pressure
A car should make life easier — not stressful.
A car is not just transportation.
It’s:
- Bringing your child safely to school
- Grocery runs without hassle
- Family trips without waiting
- Emergency hospital access
But financially? It’s a commitment.
Before signing that loan, ask: “Will this bring convenience… or monthly anxiety?”
If the numbers work, go for it confidently. If not yet, that’s okay too.
Financial timing matters more than social pressure. That’s the cost of owning a car in the Philippines 2026.
