PROPOSED INCREASE IN DOWNPAYMENT AND ADDITIONAL REQUIREMENTS FOR

PURCHASING PRIVATE OWNED CARS TO MINIMIZE THE NUMBER OF PRIVATE UTILITY

VEHICLES.
Fatallo, Kyle F. | Flores, Queenie Joy A. | Perlada, Rency A. | Rafa, Clyke John C.

I. INTRODUCTION
Philippines is now among the fastest-growing economies in Asia—which means more Filipinos are able to buy
cars. Building more and more roads is not sustainable, especially given our land constraints. With a slower pace
of road building, the annual vehicle population growth rate also has to be moderated. Based on the information
we gathered online, low interest and easy access to credit enabled the domestic automotive industry to increase
sales by more than 24 percent in 2016, with total sales of 359,572 units. In 2017, the industry sold as many as
500,000 units. The figures do not include motorcycles, the sales of which reached 1 million in 2016. We have
thus opted for vehicle ownership controls to maintain the vehicle population at levels supportable by the traffic
management system.
II. METHODOLOGY
As stated in our study; there are two ways of which could help solve our current traffic situation here in the
Philippines. It is applicable not only to the congested city of Metro Manila but also throughout the entire peninsula
whose growing cities also experience such traffic situations.
First the higher down payment for vehicle purchase and second, the legitimate parking area requirement or proof
of parking space act as proposed in the Philippine Senate.
1. Increase of tax on auto mobiles and higher down payment rates.

2. Proof of parking space/legitimate parking area (Senate Bill No. 201).

According to the DOF or the Department of Finance (which regulates and mandates the taxes imposed in each
sector), the need for a public mass transit is needed to encourage people to ride public transport instead of buying
new vehicles that would cause pollution and traffic.
Based on the DOF proposal, the tax on entry - level cars priced P600,000 and below would rise from 2 percent to
5 percent, while luxury vehicles priced above P2.1 million would be taxed 60 percent of the manufacturing /
import price, up from the current P512,000 tax plus 60 percent above P512,000.
This would let then minimum wage earners to think if they really need to buy one when there’s a lot of things to
consider. The fuel consumption specially the Train Law has already implemented will be a factor to the everyday
cost of driving a vehicle. Also, in the opposite side. The rich persons would think twice to buy specially the car
tax rate has also increased. This would be a proof that this law could be fair and not a discrimination to both sides.
This law would allow the government to impose tax on vehicle purchase for the purpose of building transportation
infrastructures to handle the large volume of commuters in the present era. Thus, higher tax would result to the
increase of down payments offered by car dealers and other requirements should also be considered when
purchasing private utility vehicle. The polluted Metro Manila would also have a clean air to breath and the
population would not rely only on the usual car transport.
Our group is encouraged to conduct surveys in order to obtain additional information in backing up this study.
We will opt for a qualitative survey involving government agencies, mainly: Land Transportation Office (LTO)
and Department of Transportation (DOTr).

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We will gather data regarding these sample questions:
 The total number of cars sold per year.
 Amount of car population around congested area.
 On what grounds does a person have the right to own a private vehicle? What are the limitations?
 What requirements do consumers need to provide in order to purchase a car?
 What are the policies and regulations with regards to car ownership?
 Typically what brand do consumers purchase? (survey for car dealership)
o What kind of payment plan does this specific brand offer?
o Average down payment consumers usually purchase?
o Do they offer low down payment rates that would attract customers?
o What requirements do they consider when a customer wants to purchase a certain vehicle?
The purpose of this survey is focused on how car dealerships come up with their pricing and how they process
car ownership for consumers. Our objective in obtaining the said data is for us to know and propose a certain
price range for increasing down payment when purchasing private utility vehicle.

REFERENCES:
https://www.dof.gov.ph/index.php/dof-pushing-automobile-tax-hike-partly-to-help/
https://www.imoney.ph/articles/automotive-tax-philippines/crisis/
https://businessmirror.com.ph/2017/10/30/analyzing-metro-manilas-traffic-problem/
https://www.mot.gov.sg/about-mot/land-transport/motoring/vehicle-ownership