Compare Car Finance in Philippines

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19 live offers compared from 19 providers, from 7.99% APR. Updated daily.

What is car finance in the Philippines?

Car finance, or an auto loan, lets you buy a vehicle by paying a deposit and repaying the balance in fixed monthly instalments over an agreed term, rather than paying the full price upfront. Banks and captive finance companies of car manufacturers provide the loan, the vehicle usually serves as collateral, and interest is charged over the life of the loan. This makes vehicle ownership accessible to buyers who cannot or prefer not to pay cash. Auto loans in the Philippines cover both brand-new and, in some cases, used vehicles, and are among the most common secured consumer loans alongside home financing.

How the Philippine market works

Two main lender types compete: universal and commercial banks, and the in-house or captive finance arms tied to specific car brands. Banks offer loans across all makes and often the most competitive rates for well-qualified borrowers, while manufacturer finance arms provide promotional deals on their own models, sometimes with low headline rates or bundled offers. Loans typically require a down payment — often around 20% of the vehicle price, though this varies with promotions — and terms commonly run from one to five years. Rates are usually quoted as an add-on or effective annual rate, and the vehicle is mortgaged to the lender until the loan is fully paid. Approval depends on income, credit history and employment stability.

Benefits

Spread the cost — Fixed monthly instalments make a major purchase affordable without draining your savings.

Own sooner — Financing lets you drive the vehicle now and pay over time rather than saving for years.

Competitive promotions — Manufacturer finance arms and banks often run low-rate or low-down-payment campaigns.

Predictable budgeting — Fixed-rate instalments stay the same each month, making household planning easier.

Builds credit — Consistent repayments strengthen your credit profile for future borrowing.

How to choose

Compare the effective interest rate rather than just the advertised add-on rate, because add-on quotes understate the true cost of borrowing. Look at the total amount you will repay over the term, the required down payment, and the loan tenure — a longer term lowers the monthly payment but increases total interest paid. Check for processing fees, chattel mortgage registration costs and any required insurance, since these add to the upfront outlay. If you are buying a specific brand, compare the manufacturer's finance promotion against a straight bank loan. Finally, confirm early-settlement terms in case you want to pay off the loan ahead of schedule.

Leading providers in the Philippines

Auto loans are offered by major banks including Security Bank, BDO Unibank, PSBank, Metrobank and PNB, each with dedicated car loan programmes and nationwide branch networks. Manufacturer-linked lenders such as Hyundai Finance Philippines and Mitsubishi Finance Philippines provide financing tailored to their own vehicles, often paired with dealer promotions. Banks tend to suit buyers shopping across brands or seeking the sharpest effective rates, while captive finance arms shine when a manufacturer is running an attractive campaign on the exact model you want. Comparing both routes for the same car is the surest way to find the best deal.

What it costs

Interest rates for Philippine auto loans commonly sit in the region of 7.99% to around 9%, though the exact rate depends on the lender, loan term, down payment and any promotion. Expect to pay a down payment — frequently about 20% of the vehicle price — plus one-off costs such as processing fees and chattel mortgage registration, and to carry comprehensive insurance for the loan's duration. A longer tenure reduces the monthly instalment but raises the total interest you pay overall. Always ask for the full computation, including all fees, so you can compare the true cost across lenders rather than headline rates alone.

Protections and regulation

Banks and financing companies offering auto loans are supervised by the Bangko Sentral ng Pilipinas (BSP) and, for financing and lending companies, the Securities and Exchange Commission (SEC). Lenders must disclose the effective interest rate and finance charges under truth-in-lending rules so you can see the real cost before signing. The vehicle is secured by a chattel mortgage, meaning the lender can repossess it if you default, so keep repayments current. Read the loan agreement's terms on penalties, insurance requirements and early settlement, and confirm the lender is a licensed, regulated institution.

Common questions

How much down payment do I need? It varies, but around 20% of the vehicle price is common, with lower amounts during promotions. What term should I pick? Terms of one to five years are typical; shorter terms cost less in total interest but have higher monthly payments. Is the advertised rate the real rate? Add-on rates understate the true cost, so ask for the effective interest rate. Do I need car insurance? Yes, lenders require comprehensive cover for the loan's duration. Can I pay off the loan early? Usually yes, but check for pre-termination fees in your contract before doing so.

Car Finance in Philippines — FAQ