Guides & Tips
How Car Financing Works in the Philippines
By Richard Cuagdan, Car Sales Executive ·
Most new cars in the Philippines are bought through a bank auto loan arranged by the dealership. You choose a unit, pay a down payment (or none, on Zero DP promos), and the bank pays the dealer the balance. You then pay the bank a fixed monthly amount, called the amortization, until the loan is done.
The four numbers that matter
- SRP – the suggested retail price of the unit.
- Down payment (DP) – what you pay upfront. A bigger DP means a smaller loan.
- Term – how many months you pay. Promos on this site are computed on 60 months (5 years).
- Monthly amortization – the fixed amount you pay every month over the term.
When comparing offers, look at all four together. A low monthly with a large down payment and a higher monthly with no down payment can both make sense; it depends on how much cash you want to keep on hand.
What "all-in" means for your cash-out
Registering, insuring and mortgaging a car costs money on top of the price. On an all-in promo, those charges are bundled into the package so your upfront cash-out is just the stated down payment. See what all-in includes.
How the bank decides
Banks look at whether the monthly fits comfortably within your income, how stable that income is, and your credit history. A common rule of thumb is to keep the car payment to a reasonable share of your monthly household income so you still have room for fuel, maintenance and everyday expenses. The budget calculator uses your income to show which units fit.
From application to release
- Pick a unit and a down payment option.
- Submit your documents (see the requirements guide).
- Wait for the bank's credit evaluation and approval.
- Sign the loan documents and pay the down payment, if any.
- Receive your car, with registration and insurance handled by the dealership.
Tips before you apply
- Prepare complete documents. Missing papers are the most common cause of delay.
- Be accurate about your income. Overstating it can lead to a denial later.
- Budget for fuel, parking and periodic maintenance, not only the monthly.
- Ask what happens if you want to pay off the loan early.