Imported Used Vehicle Blues

So, you just bought yourself an imported used sport utility vehicle (SUV). You may have gotten it from an auction somewhere in the north or from a car trader in the city. You feel lucky because it cost you less than a similar 4-year-old locally-assembled used model, and substantially less than the million-peso price tag of a comparable brand-new SUV. You were aware that your vehicle was a right-hand-drive (RHD) model converted to left-hand-drive (LHD), but you didn’t mind since the conversion seems mechanically sound and looks professionally done. The dashboard was replaced with a LHD unit and you were told that an RHD-to-LHD retrofit kit was used for the conversion. Besides, the vehicle runs great and seems trouble-free, and you’re looking forward to worry-free driving for a couple of years.

But once the Motor Vehicle Inspection System (MVIS) of the Land Transportation Office (LTO) gets fully implemented, you may need to spend more money to keep your imported used SUV on the road.

According to the Philippine Automotive Federation, Inc. (PAFI), the cost of certifying an imported used vehicle for road worthiness may spiral upwards when the MVIS is fully enacted. During its first media forum at the Dusit Hotel in Makati last week, PAFI released a report that outlined the MVIS compliance standards.

Basically, under the MVIS, vehicles are subjected to a 5-point inspection before registration. These tests are exterior/interior inspection, which checks on the license plate and confirmation of the vehicle’s identity; rust perforation and needed body repairs, wiper orientation, seatbelts, condition of seats, wheels, tire pressure and tire tread depth; handling test, which checks on the condition of the suspension, steering, alignment and brakes; headlight test, which checks alignment, aim, electrical system, including taillights, signal lamps, brake lights; under-chassis inspection, which checks under-chassis repairs, modification, rusting, as well as the condition of the exhaust system, steering system and brakes system; and the emissions test, which checks conformity the standards set forth by the Clean Air Act.

If the vehicle fails one test, it is required to undergo repairs before it can go on to the next testing phase. These tests are envisioned to be carried out by private testing centers that use computerized testing equipment and are linked real-time to the LTO data bank. Thus, it is hoped that the system is corruption-proof since the results of an MVIS test cannot be altered without the required repairs done to the vehicle in question.

According to Dante Santos, AVP for parts and service operations of Mitsubishi Motors Philippines and former president of the Truck Manufacturers Association (TMA), when they conducted MVIS tests on imported used vehicles, these posted a high average failure rate of 92 percent due to improper conversion, use of old components, misalignment, lack of safety equipment and failure due to high emissions. He further stated that repairing the vehicle in order to comply with the MVIS standards would cost the owner an estimated P243,000. Thus, if the acquisition cost of an imported used vehicle is around P350,000, the actual cost will be P593,000 when the repairs are factored in. Should the owner opt not to have the repairs done, the vehicle will not be allowed registration, thus it cannot be used on public roads.

Santos emphasized that P593,000 can buy a brand new AUV or a mid-grade passenger car. He stated that while these vehicles cannot be compared to an imported used SUV, he added that the same amount could be used as down payment for a brand new luxury mid-range car or a locally assembled SUV. He also said that these locally assembled vehicles come with warranty and a full range of after-sales service support needed to ensure their roadworthiness.

Ultimately, however, it will be the buyers who will decide which vehicle they will get. Whether they’ll get a locally assembled vehicle or an imported used vehicle depends on what these vehicles, and their sellers, have to offer. MVIS notwithstanding, it’s still the vehicle’s appeal that lightens the buyer’s bank account.