10 Expenses to Prepare for As a Motorcycle Owner

For many Filipinos, motorcycles are a uniquely affordable symbol of personal freedom, with about 1 in 3 Philippine households owning at least one. Even mid-priced motorcycles feature ownership and maintenance costs significantly lower than those of even the cheapest brand-new sedan. Thus, it’s not surprising that these nimble vehicles are much loved in a country known for its traffic snarls.

Part of the reason motorcycles are so popular these days is the ease with which working Filipinos can now access credit. The Philippines’ growing economy and the resulting increase in average buying power meant that more Filipinos could buy motorcycles without the long wait of saving up in full. Flexible loans and even digital products like a credit card with no income requirement in the Philippines, particularly app-based virtual credit lines like Maya Easy Credit, can help bridge gaps for interested buyers. With a maximum borrowable amount of Php 30,000 and up to a 30-day payment term, Maya Easy Credit makes it easier to cover the down payment of popular low- to mid-range motorcycle models.

Still, while owning a motorcycle these days may seem straightforward, many first-time owners will underestimate the true cost of keeping one in good condition. Beyond the list price, there are many other recurring expenses that every responsible rider should plan for. Let’s get into some of the things you’ll need to look out for before you even hit the road.

1. LTO Registration and Related Fees

Before using your new motorcycle, you’ll need to register it with the Land Transportation Office (LTO). Registration fees will vary depending on engine size, classification, and the region where you register, but they typically include charges for the plate number, inspection, and annual renewal. You’ll need to set aside a few thousand pesos for these upfront and yearly expenses, as failure to renew on time can lead to more expensive penalties.

2. Insurance Coverage

While motorcycle accidents are infrequent, they’re not exactly uncommon either. Fortunately, these days, there is basic compulsory third-party liability (CTPL) insurance that protects you from expenses arising from accidents involving other people. However, you may want to consider getting a more comprehensive insurance policy that offers better coverage for theft, damage, or natural disasters. Premiums will depend on your bike’s value and use case (i.e., if you’re using it as a ride share or delivery vehicle), with premium bikes being more expensive to insure. Regardless, the peace of mind insurance brings is worth every peso.

3. Fuel and Oil Costs

Fuel efficiency is one of a motorcycle’s biggest advantages, but regular refueling and oil changes will still add up over time. Budgeting a realistic amount for gas in relation to your usage ensures you’re never caught off guard, even as fuel prices continue to fluctuate in the Philippines.

4. Preventive Maintenance

In practice, modern motorcycles can be quite forgiving of abuse, but most mechanics will nevertheless recommend servicing your bike every 3,000 to 5,000 kilometers. This is not just a cash grab but a great idea, as well-maintained motorcycles perform better and last longer, giving you much more bang for your buck.

Keep in mind that maintenance costs can be as low as PHP 500 and as high as several thousand pesos, depending on parts and labor needed. To comfortably meet these expenses, it is necessary to earmark a separate fund for critical upkeep.

5. Replacement Parts and Accessories

Even with proper maintenance, some wear and tear is inevitable, especially if you use your motorcycle daily. Components like tires, brake pads, spark plugs, and chains have finite lifespans and are effectively consumable. Having a small reserve for parts and upgrades keeps your motorcycle in top shape without affecting your monthly budget.

6. Safety Gear

A good helmet is non-negotiable for motorcycle riders, but you’ll also need gloves, a sturdy jacket, and durable closed shoes for protection and to comply with various local laws. Also, consider purchasing high-visibility rain gear for added safety during inclement weather. Quality gear can be costly upfront, but it’s an investment that could very well save your life.

7. Parking Fees and Tolls

Depending on where you live or work, daily parking and toll fees can easily drain your wallet. While motorcycles often get discounted rates or dedicated slots, these costs still accumulate, especially if you need to be in a place where paying for parking and toll roads is your only option. If your situation calls for them, include these expenses in your monthly transport budget.

8. Upgrades and Modifications

Overspending on aftermarket parts, decals, and performance upgrades is sometimes taken as a joke in riding circles, but the financial consequences are very real. If you must make modifications, prioritize the ones that genuinely improve safety and performance over expensive and purely cosmetic tweaks.

9. Long-Term Costs and Depreciation

Like most vehicles, the vast majority of motorcycles lose value over time. Even if you own what is considered to be a classic or luxury model, there is almost no chance of recovering your initial expenditure, even if you exercise the best possible care.

Depreciation is inevitable, but planning wisely can help you preserve it and maximize your motorcycle’s potential resale value. Keep it in good condition and maintain complete service records to minimize your losses.

Your Two Wheels Need One Solid Financial Plan

Owning a motorcycle comes with many financial responsibilities that some riders aren’t necessarily prepared for. Fortunately, so long as you learn your obligations and manage your payments wisely, your motorcycle won’t be a financial drain. Rather, it can be your way to more freedom, in both leisure and livelihood.