Raise your hand if you don’t want a car of your own. Aside from your dream home, you also wanted a nice car for your family to avoid commute and abusive drivers. Apparently, all good things come with a cost, including a car.
Don’t worry. Banks are always there to save the day in the form of Auto or Car Loan. Before you submit your application to all the banks you can think of, make sure to read this post to help you determine the right lender that will finance your car needs.
BDO’s Auto Loan
Purpose: Acquisition of brand-new or pre-owned vehicles or reimbursement of brand-new units, whether for personal or business use (except for pre-owned vehicles).
Downpayment: For brand-new, minimum 20% and 30% of the vehicle purchase price for personal and business, respectively. For pre-owned vehicles, minimum amount is 30% and 40% of the vehicle’s appraised value for personal and business use, respectively.
Loanable amount: Minimum of P100,000, regardless if it is personal or business use. On the other hand, maximum loan amount for brand-new vehicles is 80% and 70% of the vehicle purchase price for personal and business use, respectively; and 70% and 60% of the vehicles’s appraised value for personal and business respectively for pre-owned vehicle.
Loan term: Minimum of one year and maximum of 60 months for brand-new cars and 48 months for pre-owned vehicles.
Payment options: Automatic debit arrangement (ADA), post-dated checks, over-the-counter, fund transfer via SWIFT code through corresponding banks overseas, and BDO Remit
Bonus: All-in financing, which includes chattel mortgage fees, three-year LTO registration, and first year car insurance premium; earn reward points through BDO Rewards and redeemable at all SM stores; fast loan processing, with approval within 24 hours
Additional requirements for OFWs: 2 years consecutive contract for skilled workers and 3 years consecutive contract for household workers
BPI Family Auto Loan
Purpose: Purchase of brand-new or previously-owned vehicles for personal or business use
Downpayment: 20% for brand-new vehicle and 30% for pre-owned units and brand new truck
Loanable amount: Minimum is P200,000
Loan term: Up to three years for brand-new truck, up to five years for second-hand units, and up to six years for brand new vehicles
Payment options: Automatic debit arrangement (ADA), through BPI Express Online, Express Teller ATMs, BPI Express Phone, and over-the-counter
Bonus: Qualified for a BPI-Petron Mastercard with free annual membership fee for the first year; loan approval within three to eight hours (provided that all documents are submitted); online loan application
Additional requirements for OFWs: At least P30,000 monthly family income, Contract or Certificate of Employment, Crew Contract and Exit Pass validated by POEA for seafarers, notarized or authenticated Special Power of Attorney (SPA) to allow someone to process the loan on your behalf, and proof of monthly remittances
Metrobank’s Car Loan
Purpose: Purchase of brand-new vehicles only for personal or business use
Downpayment: 20% of the net selling price
Loanable amount: Minimum amount of P250,000 and maximum amount of 80% of the vehicle’s net selling price
Loan term: Equal monthly amortization in 12, 18, 24, 36, 48, or 60 months
Payment options: Automatic debit arrangement or post-dated checks
Bonus: Pre-termination of loan is allowed but must be approved first, choose between paying your first monthly amortization 30 days after loan approval (in Arrears) OR pay first monthly amortization upon release of the unit and enjoy lower rates (one-month advance or OMA); must secure a comprehensive insurance policy that includes Acts of Nature coverage with Metrobank-accredited insurance providers; online loan application; approval within one banking day
Additional requirements for OFWs: Valid government-issued ID with signature, Certificate of Employment Contract with email address of employer (land-based), latest POEA contract (seafarers), bank statement or latest Income Tax Return (ITR), and at least P35,000 gross monthly income
PNB’s Sure Wheels Auto Loan
Purpose: Purchase of brand new or previously-owned vehicles
Downpayment: No information available on the website
Loanable amount: Mimimum of P300,000 up to 80% of the purchase price for brand-new vehicles and minimum of P150,000 to 75% of the appraised value for second-hand cars
Loan term: Maximum of 60 months for brand new vehicles. For previously-owned cars, maximum loan term is 48 months if the car is one to three years old, 36 months for four-year old vehicles, 24 months for cars aged five to six years, and 12 months if the car is seven years old and above.
Payment options: Automatic debit arrangement and post-dated checks
Bonus: Low interest rate, quick approval, easy to comply loan requirements
Additional requirements for OFWs: Latest contract of employment and proof of remittance
Bank of Commerce Auto Loan
Purpose: Purchase of a new car
Downpayment: No information is provided in the website
Loanable Amount: Minimum of P100,000
Loan term: 12 to 60 months
Payment options: No information is provided in the bank’s website
Bonus: Limited information available
Additional requirements for OFWs: Original Certificate of Employment indicating your position, income, and length of stay in the company
Take note that this post is for information purposes only and subject to change without prior notice. Inquire directly to your preferred bank to determine the exact requirements needed in the loan application.