Looking to buy a new car soon?
If you don’t have enough cash on hand, chances are you’ll rely on car loans to finance your purchase. Do you know which banks offer the best car deals?
Check out our list below to guide you!
Sample computations for a purchase of a car that costs P700,000 are shown below.
The bank would normally require 20% downpayment, which means P140,000 will already be paid outright to the bank. This leaves you with a total principal car loan in the amount of P560,000.
Assuming you plan to pay this P560,000 balance in 36 months (3 years), you can check out the table below to see how much:
- the annual interest rate charged to your loan;
- the amount of your monthly car loan installment; and
- the total interest you will pay to the bank.
Car Loan Interest Rates (2014)
| Bank Name | Monthly Car Loan Installment | Interest Rate per Year | Effective Interest Rate | Total Interest over Loan Period | |
|---|---|---|---|---|---|
| 1 | Security Bank | P17,791 | 4.79% | 8.93% | P80,472 |
| 2 | BPI | P17,987 | 5.21% | 9.68% | P87,528 |
| 3 | Unionbank | P17,987 | 5.35% | 9.69% | P87,528 |
| 4 | PNB | P18,052 | 5.49% | 9.93% | P89,880 |
| 5 | Chinabank | P18,118 | 5.59% | 10.18% | P92,232 |
| 6 | RCBC | P18,164 | 5.59% | 10.36% | P93,912 |
| 7 | BDO | P18,183 | 5.63% | 10.43% | P94,584 |
| 8 | Eastwest | P18,276 | 5.83% | 10.78% | P97,944 |
| 9 | PSBank | P18,762 | 6.87% | 12.60% | P115,416 |
| 10 | Metrobank | P19,961 | 9.44% | 16.98% | P158,592 |
Make sure you’re able to afford your monthly loan installments before deciding to buy a car. Vroom vroom!
Must read these other awesome, useful posts!
- How to waive or avoid paying Annual Fees of credit cards
- List of Ongoing Credit Card Promos
- Housing Loan interest rates in the Philippines
- Compare Interest Rates: Housing Loans, Credit Cards, Savings and Time Deposits
Sources: Official websites of credit card companies, iMoney.ph, MoneyMax.ph
{hwajurong12@gmail.com or hwa.jurong@yahoo.com.sg)
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Thank you for sharing this. I’m actually in search for a car right now and is computing the costs. This is really helpful.
In case of absence of enough cash a person will rely on a car loan to finance the purchase. The car loan finance rates have been changing over the years. Hence it all depends on the company policies.