“Riding a bike is like an art, something you do because you feel something inside.”
– Valentino Rossi (Former motorcycle racer)
Getting stuck in your car in the middle of a traffic jam is the most frustrating thing that can happen to anyone on a work morning. Every year, drivers potentially lose hundreds of hours due to rush hour gridlock in the Philippines. The traffic there is so bad that it’s been globally recognized as a significant issue. (UBC Blogs: Introduction to Manila’s Traffic Congestion)
This is one reason why motorcycles are the most preferred mode of transportation in the Philippines. They not only help navigate heavy traffic, but are also more affordable, fuel-efficient, and versatile.
Considering these advantages, I bought one for myself, and the Golden Peso helped me finance my vehicle. Various aspects should be kept in mind while buying a motorcycle and in this article, I will talk you through the important considerations you need to be aware of to make a smart purchase.
Why Motorcycles are Popular in the Philippines
Before delving into the considerations, let me tell you about the key reasons for the popularity of motorcycles in the Philippines:
Cost-Effective Commute In comparison to cars and public transportation fares, motorcycles prove to be a more affordable option for daily travel, saving both time and money.
Fuel Efficiency Motorcycles consume far less fuel than cars. Many models in the market offer 40–60 kilometers per liter, making them the perfect choice for long commutes or frequent travel.
Traffic Navigation In congested roads in cities like Metro Manila, motorcycles help cut down travel time to a significant degree by allowing riders to navigate traffic efficiently.
Accessibility to Rural Areas In congested provinces, motorcycles can be a reliable way to reach places where larger vehicles struggle due to unpaved or narrow roads.
Versatility for Work and Business Motorcycles are the ideal choice for delivery services, ridesharing (e.g., habal-habal or app-based services), and other small businesses, offering an additional income stream.
Cost Considerations for Buying a Motorcycle
You’ve got it wrong that you think owning a motorcycle involves just the initial purchase price, I’ve listed down the breakdown of the costs for you to get a better idea:
1. Purchasing the Motorcycle
First, select a motorcycle that fits your needs and budget. These options can range from basic commuter models to more premium or specialized bikes.
Entry-Level Motorcycles: If you want a bike for daily commutes, this will be the perfect choice for you. Usually, the cost lies between ₱50,000 to ₱80,000. Famous models include:
Honda TMX125 Alpha
Yamaha Mio i125
Suzuki Raider J Crossover
Mid-Range Motorcycles: These offer better features and performance, priced between ₱80,000 to ₱150,000. Some popular choices are:
Honda Click 150i
Yamaha NMAX
Suzuki Burgman Street
Premium and Specialized Motorcycles: These are for enthusiasts or people who need motorbikes for business purposes. Their price ranges from ₱150,000 to ₱300,000+, examples include:
Kawasaki Dominar 400
Yamaha Aerox 155
Honda ADV150
DO YOU KNOW? The global motorcycle market is currently worth $148.8 billion and is projected to grow at a CAGR of 7.0% and reach $233.0 billion by 2032.
Financing Your Purchase
If you cannot afford to pay the full amount at once, motorcycle loans or installment plans are viable solutions. Golden Peso helped me in this by providing access to financing options that allowed me to purchase a motorcycle and pay in manageable installments.
Down Payment: Most loans require the buyers to pay a down payment of about 10% to 20% of the total price.
Monthly Payments: Loan terms typically span 12 to 36 months, based on your repayment capacity and the lender.
Example Calculation: To help you understand better, here is how I made my purchase, I bought a bike worth ₱70,000, and here is what the calculations looked like for me:
20% down payment: ₱14,000 upfront
Loan amount: ₱56,000
24-month term with a 1.5% monthly interest: ₱2,500–₱3,000 per month
2. Registration and Licensing Costs
After purchasing a motorcycle, you need to ensure it is registered with the Land Transportation Office (LTO). This is a mandatory step for legal operation on Philippine roads. The costs of it look something like this:
LTO Registration Fee: ₱1,000–₱1,500 annually for new motorcycles.
Emission Testing Fee: ₱300–₱500.
Third-Party Liability (TPL) Insurance: ₱300–₱600.
Driver’s License Application or Renewal: ₱800–₱1,200, depending on the validity.
Tip: You can ask for assistance for registration from your dealer, to bundle these costs into the purchase package.
3. Motorcycle Maintenance
Regular maintenance is necessary to keep your motorcycle in good condition and avoid costly repairs in the future. This is what the typical maintenance expenses may look like:
Oil Change: ₱300–₱600 every 1,000–2,000 kilometers.
Brake Pads Replacement: ₱500–₱1,500 annually.
Tire Replacement: ₱2,000–₱5,000 for a set, depending on brand and quality.
Chain Adjustment and Lubrication: ₱200–₱500 every few months.
General Check-Up: ₱500–₱1,000 per service visit.
Over the course of a year, maintenance costs for a commuter motorcycle can typically lie anywhere between ₱3,000 and ₱8,000, depending on usage and condition.
4. Fuel Expenses
It is no secret that motorcycles are extremely fuel-efficient, making them a budget-friendly option for daily commutes.
Average Fuel Consumption: 40–60 kilometers per liter.
Fuel Cost: ₱60–₱70 per liter (based on current prices).
The monthly cost for a rider commuting 30 kilometers daily (15 km each way) can be around ₱1,500–₱2,000
5. Safety Gear and Accessories
Investing in high-quality safety gear is non-negotiable for motorcycle owners. It not only protects you in case of accidents but can also enhance comfort during rides.
Helmet (Required): ₱1,000–₱5,000, depending on brand and certification.
Riding Gloves: ₱500–₱2,000.
Riding Jacket: ₱2,000–₱5,000.
Rain Gear: ₱1,000–₱2,500.
If you need additional accessories like phone mounts, cargo racks, and seat covers, it can cost another ₱1,000–₱3,000.
Budgeting Tips for Motorcycle Ownership
The following budgeting tips helped me make a wise and more economical decision:
1. Choose the Right Motorcycle
Choose a model that suits your needs and budget. If you need the motorbike for daily commutes, an entry-level or mid-range bike will be sufficient for you.
2. Plan for Financing
If you require help with financing, platforms like Golden Peso can help you explore loans at reasonable interest rates and repayment terms.
3. Budget for Recurring Costs
Regularly tracking expenses can ensure you avoid financial surprises. So, account for registration, fuel, maintenance, and safety gear in your monthly budget.
4. Build an Emergency Fund
There is always a possibility of unexpected repairs or emergencies. Keeping aside ₱5,000–₱10,000 for repairs or emergencies can bring you peace of mind.
5. Ride Efficiently
These efficient riding habits can help you maximize your fuel savings:
Avoid sudden acceleration and braking, as much as possible.
Always keep tires properly inflated.
Perform routine maintenance.
Owning a Motorcycle for Business Purposes
For those of you buying a motorcycle for work—such as food delivery, courier services, or ridesharing—here is how you can increase income:
Delivery Services: Motorcycles are widely used for delivery apps like GrabFood, Foodpanda, and Lalamove.
Ridesharing: Platforms like Angkas allow riders to earn money by delivering transport services.
Business Deliveries: Small businesses can use motorcycles to deliver goods or run every-day errands efficiently.
Financial Tip: If purchasing a motorcycle for business, ensure profitability by calculating your potential earnings and comparing them against monthly expenses.
FUN FACT According to studies, owning and riding a motorcycle can positively impact your physical and mental health.
Challenges of Motorcycle Ownership and How to Overcome Them
Owning a motorcycle also brings some challenges with it. To prepare you better, I have created the following list of potential setbacks and their solutions:
1. Safety Concerns
Riding motorcycles can be risky, especially on busy roads.
Solution: Always wear safety gear, follow traffic rules while riding, and ride defensively.
2. Maintenance Costs
Neglecting regular maintenance can result in bigger expenses in the long run.
Solution: Effectively budget for regular check-ups and preventive maintenance.
3. Fuel Price Fluctuations
Increasing fuel costs can have a significant impact on your monthly expenses.
Solution: Try to use fuel-efficient riding techniques and consider more suitable alternatives like electric scooters for short distances.
4. Traffic Violations and Penalties
Non-compliance with LTO rules can land you in legal trouble and result in costly fines.
Solution: Ensure your motorcycle is registered, your license is valid, and you follow all road safety rules.
Final Thoughts
From all we discussed in this article, it is safe to say that owning a motorcycle for daily commutes in the Philippines is a practical and cost-effective choice.
Carefully planning your finances for the purchase, registration, maintenance, and safety gear will allow you to enjoy the numerous benefits of motorcycle ownership without financial stress.
If upfront costs are an issue for you, platforms like Golden Peso can support you by providing access to loans tailored to your needs and helping you buy a motorcycle through affordable and manageable payment plans.
You can make your motorcycle an invaluable asset for work, travel, and your daily life by putting effort into thoughtful budgeting, responsible ownership, and a focus on safety.
