Auto Loans Philippines

Car financing from Philippine banks and in-house financing companies. Compare interest rates, down payments and terms for new and used vehicle purchases.

Who Philippine auto loans suit

Auto loans from banks and in-house financing companies let Filipinos purchase a new or used car without paying the full price upfront, spreading the cost over a fixed term with the vehicle itself serving as collateral. Bank-arranged auto loans generally offer lower rates for borrowers with strong documentation, while dealer in-house financing can approve faster with more flexible requirements, typically at a higher effective cost.

Eligibility basics

Applicants are generally required to be Filipino citizens or qualified resident aliens aged 21 to 65 at loan maturity, with a valid driver's license or other government ID, proof of income such as a Certificate of Employment and payslips or an ITR for self-employed borrowers, and a down payment that commonly ranges from around 10% to 20% of the vehicle price for a bank loan, sometimes higher for in-house financing on older or used units. The financed vehicle's Certificate of Registration (CR) is typically annotated with the financing company's chattel mortgage until the loan is fully repaid.

A cost example

For a car priced at PHP 900,000 with a 20% down payment of PHP 180,000, the financed amount of PHP 720,000 repaid over 60 months at a bank auto loan rate would produce a monthly amortization that is typically more favorable than financing the same amount through a higher-rate in-house or financing-company program, though the exact figure depends on the specific lender's current rate and any bundled insurance or documentation fees.

How to apply

First, decide on the specific vehicle and get a firm all-in price from the dealer, including registration, insurance and any dealer fees, so you know the exact amount to finance. Next, compare at least one bank auto loan quote against the dealer's in-house or tied financing option, since the difference in effective rate can be substantial over a multi-year term. Then submit your ID, income documents and down payment, and review the full amortization schedule and any required comprehensive insurance before signing. Finally, confirm when and how the chattel mortgage annotation on the CR will be released once the loan is fully paid, so you have clear, unencumbered ownership at the end of the term.