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

Updated on March 24 2025

TL;DR: Get Your Car Loan Approval Here.

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: Almost all 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

Financing from Automart.Ph's multiple bank and financing partners

Automart has partnered with the best and the biggest banks and financing companies to offer you the most competitive used car loans in the market, and give you the best chances of approval. Automart is partnered with EastWest Bank, BDO, BPI, Asialink, Global Dominion, South Asialink, JACCS, Welcome Bank, and other companies who are all committed to giving you the best used car financing options.

Is application for car financing free?

Yes, there is no application fee for online submissions. What's more, you should be wary of entities who charge you for financing approval.

Who is eligible for financing?

Although there are some variations across institutions, here are the general qualifications:

Applicants must be Filipino citizens of at least eighteen years of age with good character and reputation.
Residency of at least two years at their current address except in the case of a new home owner.
A source of income. If employed, you should have been connected with your current employer for at least two years with a minimum basic monthly salary of P18,000. If you are a professional or self-employed, you should have been in the same profession or the same business for at least three (3) years, and your business should have been operational for at least two (2) continuous years with profitable operations.

What are the requirements for financing or a used car loan?

The requirements are very similar to the usual loan information. Here is the list, depending on the entity applying:

For Individuals

2 valid government ID’s (if employed, please include company ID)
Proof of Billing
Proof of Income (3-month payslip)
Residential, Business, or Employment Address Map
Certificate of Employment
Barangay/Business/DTI Permit (for business owners)

For Businesses

Two Valid Government ID's (Front & Back)
Latest Proof of Billing (Electricity or Water Bill)
Business registration (Permits)
Three Months Bank Statement
At least 3 years operational

For Pensioners

Two Valid Government ID's (Front & Back)
Latest Proof of Billing (Electricity or Water Bill)
Proof of pension or 3 months latest bank statement
With applicable co-maker (first-degree relative)

For OFW

Two Valid Government ID's (Front & Back)
Latest Proof of Billing (Electricity or Water Bill)
Latest contract with compensation
Return ticket (if on vacation)
Latest proof of remittance or bank statements (3 months)
Automatic field verification

For Seafarers

Two Valid Government ID's (Front & Back)
Latest Proof of Billing (Electricity or Water Bill)
Latest contract with compensation
Return ticket (if on vacation)
Latest proof of remittance or bank statements (3 months)
Automatic field verification
Certification coming from crewing manager indicating borrower's next boarding schedule

How long does it take to process my application?

It's possible to get approved in just 1 day if your requirements are complete..

What are the terms of the installment?

The rates change on occasion, and the latest calculators are always found on Automart's page dedicated to car installment.

Is there a minimum or maximum amount for financing?

Yes, the loaned amount must be at least P200,000.

How to get a loan from the bank

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:

Find out who you are and your contact information, including your address.
Make sure you have the capacity to pay them back for the car.
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.

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. Some financing institutions can go down as low as 20% as their standard rates.

Through Automart's special partnerships with some financing institutions, we can offer 0% down payment on select units. Of course, this means that the monthly payments you'll end up paying would be higher, so this is something that you should think about.

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?

One day- If you have complete documents, we can process your loan within one day, with some of our preferred financing partners. Generally, larger banks take longer to approve loans.

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.

If I have a record of non-payment for past loans, including credit cards, can I still apply?

Yes! It is still possible to get approved for a used car loan even if you have a record. Although it would be harder to get approval with some institutions, it is still possible. We have financing partners willing to approve loans despite previous record. We strongly suggest to submit your documents, so we can help you get approval.

Can I get pre-approval even before choosing a car?

Yes you can! Just submit your documents, and we'll process your approval first so we can tell you the loan details, and how much your maximum loanable amount. From there, you can choose a car from Automart's thousands of cars available on our inventory.

Can I get financing approval after I've bid on a unit?

Yes, this is also possible, although keep in mind that there's limited time for you to get the funding for the car before the Payment Instruction Sheet (PIS) becomes invalid. For this reason, we suggest getting your loan pre-approved. Once your loan is approved, we can then help you find the best car for you.

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