Own Your New Car through Auto Loan (and Find Out the Best Bank For You!)

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.

What You Need to Know about Banks and their Remittance Services

OFW and remittances are two concepts that go together. Always. In fact, one of the primary goals why Filipinos work abroad is to be able to provide a better future for the family. To fulfill that promise, one must be able to send money back home.

Here’s the challenge: choosing the best remittance provider where you can entrust your money.

You can rely on remittance providers like Xoom or Western Union to help you send money in the Philippines. You get to save on fees too, which can be helpful since every centavo in your hard-earned money counts. On the other hand, there are risks involved and going after them can be a headache.

This is why you need to consider banks as a your remittance provider.

Check out the banks that provide remittance services for you and your family:

BDO Remit 

BDO has facilities in Asia, Europe, Middle East, and North America to make their remittance services fast, easier, and more accessible for you. BDO also partnered with various remittance centers worldwide like MoneyGram, Wells Fargo Express Send, Xoom, and Ria Money Transfer among many others. All you need is to apply for BDO Remit Cash Card and you are good to go.

Why BDO Remit?

  • Real-time sending of your remittance
  • With your Cash Card, you can shop anywhere with POS terminals and use the card to pay for your purchases
  • Allows your family to easily withdraw money anytime, anywhere
  • Beneficiary is informed of the remittance made through BDO Remit Text Service

What about the fees? That would depend on BDO’s remittance partner where you coursed your money transfer. For a detailed list of remittance fees, check it as per BDO’s website here.

BPI Remittance 

“Make the best happen” is what BPI believes in. To live up to that promise, they want to make sure that they can extend their helping hand to OFWs through various products, including remittance services. This is why BPI was awarded as the top commercial bank in the Philippine remittance business for three consecutive years.

Why BPI Remittance? 

  • Wide remittance network in key areas around the world to make money transfer easier and more convenient
  • Money sent is almost realtime (which will start from the time BPI receives valid payment instructions from their tie-ups)
  • Remittance is credited either directly to BPI account or any other account from local banks in the Philippines, which your beneficiary can get from branches nationwide or through door-to-door delivery
  • Money can be withdrawn using the ATM card, free of charge
  • You can send money in peso or dollar, except for BPI Direct savings where only peso currency is allowed
  • Free text message informing you and your beneficiary of the remittance made
  • Allows you to pay bills directly to a merchant

What about the fees? The fees would also depend on the amount charged by their tie-ups. Check the links for more detailed information about Overseas Office service fees and Inward Remittance Charges.

Metrobank Remittance Services

One of the most stable banks in the Philippines, Metrobank offers variety of products and facilities for OFWs, including remittance services.

Why Metrobank? 

  • Real-time credit of money to your Metrobank peso account or World Cash Card and within 24 hours credit when money is transferred to other Philippine bank accounts
  • Door-to-door cash delivery, which your beneficiary will receive within 24 hours for Metro Manila and 2-3 days for provincial areas
  • Cash pickup services in partner centers like Cebuana Lhullier, LBC, and Palawan Pawnshop among others
  • Allows you to pay your utilities even while abroad through Metrobank foreign branches and subsidiaries

What about the fees? Similar to the first two banks, the fees depend on the branch where you will course your remittance. Check out this link for a more detailed information about remittance fees.

China Bank Remittance 

Apart from the savings account, Chinabank also offers remittance facilities to OFWs. It can be another option to send money in a fast and secure way.

Why Chinabank? 

  • There are variety of options to receive money – credited to Chinabank account or other local bank account, door-to-door delivery, or pick up in any China Bank branches or pay-out partners nationwide like LBC and SM Global Pinoy Center among others
  • Your beneficiary can withdraw money from any ATM branches nationwide
  • Fixed remittance fees regardless of where you are when remitting your money

What about the fees? Check this link for a detailed list of the fees when making remittances.

PSBank Remittance 

PSBank is known for providing accessible and affordable products for Filipinos. True to its reputation, the bank now offers affordable remittance services for OFWs.

Why PSBank Remittance? 

  • Partners with some of the biggest banks around the world, including Wells Fargo and JP Morgan Chase
  • Money is wired quickly and safely at low service fees through telegraphic transfer

What about the fees? It doesn’t matter where the money is being wired from. Remittance charges are fixed regardless of where you are. Know the fees in detail by clicking this link.

PNB Remittance

“Global Filipino” is what PNB believes in. To live up to that, they also offered several products specifically for OFW, including remittance facilities.

Why PNB Remittance? 

  • Remit money straight to your PNB account or Global Filipino Money card (GFMC) in seconds
  • Offers variety of ways to send money back home through their correspondent banks and tie-up remittance companies
  • Conveniently withdraw money in PNB, Megalink, Bancnet, and Expressnet ATMs all over the Philippines
  • Tied up with various banks and remittance partners to make sure you transfer money easier and more conveniently
  • Allows you to check the remittances online, which you can access here.
  • Door-to-door delivery, credit to non-PNB accounts and remittance pickup at any PNB branches and pay out partners are likewise available

What about the fees? The remittance charges are dependent on where you remitted your money. PNB website listed the detailed charges when coursing through money transfer with them, which you can access here.

Banks may charge higher rates when coursing money transfer and require you to have an account with them. Nonetheless, you can never buy safety and peace of mind, especially when it concerns your hard-earned money.