Used Car Loan

Used Car Loan: How to get Approved- the Ultimate Guide

Used Car Loan: How to get Approved- the Ultimate Guide

One day, you were in the midst of canvassing for an auto and you happen to stumble upon a great deal for a used one.  Great! Now comes the tricky part of paying for it.  You look through your options and decided it would be better to buy the car using a used car loan.

Luckily, Philippine banks are more than willing to lend you money, as long as they can be reasonably assured they'll get their money back. Read more, to know more about the used auto loan process.

Note: Most cars in Automart.Ph are available for installment. You can apply for an autoloan after winning the bidding or auction for the car or vehicle in question. Automart will be there to guide you through the entire process so you don't have to worry about a thing!


Click here for the Ultimate Guide in Buying a Used Car.

Click here for more information on How and Why you Should Buy Repossessed Cars

Browse through our extensive car selection here


In a nutshell, the bank is really just interested in some information about you, before they approve your used car auto loan. This is partly government regulated by the Bangko Sentral ng Pilipinas or BSP, and mostly for the bank's safety and due diligence. They want to:

  1. Find out who you are and your contact information, including your address.
  2. Make sure you have the capacity to pay them back for the car.
  3. Make sure you're using the funds and the car for things that are above-board.

It seems like a lot of paperwork and documents, but it's really easy and necessary. Though it may take a while, you are also assured that the bank will help you through the entire process.

What are the requirements for a used car loan?

It partly depends on whether you're taking the used auto loan as a business or as an individual. Here are the requirements based on Eastwest Bank's.  Most other banks have very similar requirements too.

Qualifications

  1. Between 21 and 70 years old at the end of the loan term
  2. Gross family income of P40,000/ mo minimum
  3. Stable source of income from employment or business.

Documents

Individual

  1. Completely filled-up application form
  2. ITR
  3. Employment Certificate / 3 Months Bank Statement
  4. Valid Government Issued ID

Corporation/Business

  1. Completely filled-up application form
  2. SEC Registration
  3. Articles of Incorporation
  4. By-laws
  5. Latest GIS
  6. Latest ITR
  7. Latest Bank Statements for 3 months
  8. Comparative AFS

What is a good interest rate on a car loan?

Banks have different interest rates depending on the loan term you prefer–the longer the loan, the higher the interest. Here are the rates for some Key Bank Partners that we have:

EastWest Bank                                                      
  • 12 Months - 7.19%
  • 24 Months - 16.37%
  • 36 Months - 25.68%
  • 48 Months - 36.04%
BDO
  • 12 Months - Not Available
  • 24 Months - 14.11%
  • 36 Months - 22.52%
  • 48 Months - 30.06%

How much is the downpayment on a car loan?

Banks typically require a minimum of 30% for downpayment and a max term of four years.

Further, depending on the bank, some have minimum prices for cars that can be loaned for. As an example, Eastwest Auto loans department will only give you a loan if the car you're buying has a starting price of at least P300,000 and above.

Automart.Ph will gladly give you an Auto Loan Computation or estimate for the cars that you are interested in buying. Get in touch with us and ask for a computation!

How long does it take for a used auto loan to be approved?

Once you win the vehicle, we'll give you the forms and help you apply and get approved for the loans. Loan application time frame ranges from 2 weeks to 3 months. Unfortunately, we don't have direct control over how long this process will take.

Ready to buy your car? Simply call or message us now, or chat with us on our website so we can help you!

Phone:
+632-7904-7940
0927-887-6400

Email: contact@automart.ph
Website: https://automart.ph
Facebook: AutomartPh


Learn More About Buying Used and Repossessed Cars Here

Buying Used Cars - A Simple Guide

Why Buy Repossessed Cars