More people are buying motorcycles, which are more affordable than cars and relatively easy to acquire. Find out what it takes to be a habal-habal (motorcycle taxi) driver in Cebu City and what apps allow commuters in Metro Manila to hail a motorcycle taxi. This is the second of three parts of a multimedia report on the new "king of the road" that was originally published on April 3, 2017.
READ: Habal-habal invades cities (Part 1)
LIKE other developing countries, the Philippines is seeing an increase in motorcycles.
In Metro Cebu in central Philippines, the Land Transportation Office (LTO) has reported an uptrend in the renewal of motorcycle registrations. From 159,574 renewals recorded in 2014, the number went up to 172,671 in 2015 and 176,411 in 2016.
The low downpayment, affordable loan terms and fast processing have made it easier for the low- and middle-income sectors to acquire a unit, according to a motorcycle dealer.
Orlando Villaflores, branch manager of Honda in the city, told SunStar Philippines that most of their customers but their motorcycles because of the brand's cheaper prices, good quality, for personal use, and for business reasons.
ADVANTAGES. Orlando Villaflores, branch manager of Honda Motor Company in Cebu City, says clients prefer their brand because they are cheaper and have good quality. (SunStar Philippines/CIT-U Intern Aljun Cainghog)
The shop's most in-demand units are the XRM 125 Dual Sport, which costs P64,000, Honda Wade 110 Alpha Spoke (P44,900), and the Honda Wade 110 Alpha Cast (P46,800).
He said most of their customers come from Cebu City, Mandaue City, Lapu-Lapu City, Minglanilla, and Talisay City.
He said a customer can acquire a motorcycle by paying for it in cash or through loan.
Example, if a customer pays for an XRM 125 unit (P64,000) in cash, he can avail himself of a P500 discount which will lower the price to P63,500.
The unit can be released on the same day of purchase, according to Villaflores.
But if a customer wants to take out a loan to purchase a motorcycle, he has to fill out a CI (Credit Investigation) form that will be subject to approval.
Once the customer's CI form is approved, he will have to submit requirements like cedula, barangay clearance, 2x2 picture, proof of billing like a payslip, electricity of water bill, and his co-maker's 2x2 picture and two valid identification cards.
The processing of requirements for a loan usually takes at least three days depending on the availability of the personnel approving the documents.
The customer will also be asked to give a downpayment, which usually costs around P4,000, and choose different payment terms -- six months, 12 months, 18 months, 24 months, 30 months and 36 months -- and pay monthly installments.
Once the application is approved, the customer will sign a contract before the motorcycle is released.
Payment of the monthly installment, which usually amounts to around P3,000, starts in the following month.
Villaflores said a person can apply for multiple loans depending on their financial capabilities.
When asked if there are customers who buy motorcycles for habal-habal (motorcycle taxi) operations, he said they had a few buyers who cited the operations as their reason but their applications usually get rejected.
He said most of the customers, who used their units for habal-habal operations, were not able to finish paying for their units. (SunStar Philippines)