How to Get a Car Loan for Expats in the Philippines

Getting a car loan as a foreigner in the Philippines is hard but not impossible. You usually need two-plus years of residency, a co-signer or employer sponsor, and a chunky down payment. Here are your financing options and the most expat-friendly banks.

Buying a car is all fun and good until you get to the not-so-fun part: paying for it. Unless you can pay in cash, you’d still need to find a way to finance the car purchase. And it can be a challenge to secure a car loan if you are an expat in the Philippines. It’s not entirely impossible, but you need to have the right information and manage your expectations.

In this article, we’ll walk you through the different car financing options in the Philippines, the process of applying for a car loan, and what you should prepare for.

Car Financing Options for Expats

The Philippines has many similar financing options for auto purchases as many Western nations. Unless you can pay cash or bank transfer, you may need to seek out available financing options available to expats. 

Traditional Car Loans

Almost all of the major banking institutions in the Philippines have pretty robust vehicle loans with terms you will likely be familiar with. 

A word of caution is that the interest rates can be pretty demanding on your bank account, so make sure you take that into consideration when you are making a decision. Even if you have a bank account in the Philippines, a conventional bank loan is possible for expats, but it is incredibly challenging to achieve. 

It is not that banking institutions in the Philippines want to make your life more difficult or discriminatory. But let’s face it, for an unscrupulous person, it would be easy as a foreigner to get a loan and abscond from the country should you default on your financial obligations. Banks in the Philippines know this, probably by experience, and so it is quite difficult to get a traditional auto loan as an expat.

While incredibly frustrating at times, I also think this is very fair because the banks are in business to make money, and to be responsible to their shareholders.

In-House Financing

There is the option of buying from a second-hand car lot that will work out the financing internally or with a preferred bank. Knowing the people involved can really help with this process. Make sure you get terms that are manageable for you and don’t settle for an exorbitant interest rate that will see you paying way too much for a vehicle. 

When purchasing a car, don’t let the excitement or immediate need to have access to a vehicle overrule good financial sense, because that can result in money woes in itself. Stay grounded and reasonable, and make sure you understand the interest and borrowing terms very thoroughly. 

For a very critical financial decision like this, if the person you are working with doesn’t speak highly functional English and you haven’t learned a highly functional local dialect yet, bring along someone you know and trust who can help translate for you. It is always important to know and understand what you are agreeing to when it comes to your livelihood and money. 

Overseas Banking

Lastly, again, it can be incredibly advantageous to keep banking relationships open in your country of origin. I have had to use a line of credit for car repairs from my US-based credit union a couple of times. Because I still maintain an address in the US, I am legally able to do so. I highly recommend maintaining some kind of address in your “home” country so that you can maintain your bank accounts.

Depending on your origin country’s credit score or rating system, this can open up personal loans, lines of credit, home equity loans, and other open-ended bank products that can really help in buying a vehicle in the Philippines. 

Just for clarity’s sake, it should be noted that your origin country bank will not give you an auto loan in the Philippines though. Auto loans are collateral loans, and a bank not located in the Philippines has no way to collect the collateral (the vehicle) if you were to fail to make payments, so it’s not even a reasonable option. However, the open-ended borrowing options can be transferred to the Philippines and used for purchasing whatever you want – including, in this case, a vehicle. 

How to Get a Car Loan?

For those who can get a car loan, congrats! I’ll admit I have gone through the process multiple times and researched it heavily, so I am VERY familiar with it, but I have failed every time. This is despite having an expat employee contract in the Philippines, a steady and solid source of income that could clearly meet the payments, and the appropriate work permits and prearranged employment visas. 

You may be wondering, “Why?” I have often wondered that myself! Joking aside, it is because the requirements for a foreigner, like myself, to get a loan here are quite strict and, again, that is for good reason. 

I could now qualify for a loan pretty easily because I have been here for years (established some longevity in the Philippines) and have just extended my employment contract for another several-year period (so I have documented proof that I will be here working longer).

With these two pieces, I would be okay to get an auto loan, but I have already met my vehicle needs through buying second-hand vehicles utilizing other purchasing options (cash and US lines of credit). 

Expat Eligibility for a Car Loan

If you are an expat and you want to get a car loan in the Philippines, several of the major banks will help you and will offer decent interest rates if you qualify. BDO is one, for example, that does loans to foreigners, provided they meet the requirements. These car loan requirements in the Philippines can be summed up into a few subcategories:

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Length of Stay 

An expat who has resided in the Philippines for a minimum of two years and who can document their continued employment (such as via an employment contract) or continued stay in the Philippines. Banks, in this situation, will only extend the loan repayment length to coincide with the employment documents. An example, if you have a three-year expat employment contract, the bank will only go 36 months on repayment terms. 

Married to a Filipina/o

If you have a Filipino family, then often they can get the loan or can co-sign with an expat, so that the expat will get the loan. The co-signor actually does not need to necessarily be a family member, but I always find it difficult to ask people to be willing to commit to financial responsibilities on my behalf, so I have never explored this option more fully. However, it is important for you to know that it exists. 

Via an Employer

An employing organization can sponsor the expat for a vehicle loan. Basically, this is the equivalent of your organization co-signing with you and promising repayment if the individual defaults on the payments. 

Another important requirement for both Filipinos and expats is that you typically must be at least 21 and not over 70 at the time of the auto loan maturity. 

Required Documents

If you fall into one of these categories, then great! Getting an auto loan will actually be a pretty straightforward process for you. For the application, you will need to provide the following car loan requirements: 

• ID (typically a passport is best)

• Proof of income, such as your employment contract or bank statements

• Proof of your continued residency in the Philippines (a work contract or your visa)

• Your Alien Certificate of Registration (ACR) card

• Proof of address, such as a utility bill in your name or a copy of your lease. 

Additionally, if you have a co-signor, they will have to provide documentation as well. Processing is not instantaneous like in some other places around the globe and can take anywhere from a week to two weeks to be approved, so be sure to set expectations that you will not be able to immediately take home your vehicle. 

An important additional note: your mileage may vary on these recommendations. I have laid out the official processes based on what I know and my experience in the Philippines, but I have heard stories of expats getting auto loans much more easily by knowing the right bank manager or being a frequent customer of a certain branch. I cannot verify those stories independently and have not had a similar experience myself, but you may have smoother sailing, proverbially, than me as well. 

My advice is meant to give you a realistic perspective of the process so that you can prepare yourself and not be frustrated, so if your process ends up being easier than this – count that as a major expat win! And then please come back and comment about your experience and how you made it happen in this article, because I would love to know about it too.

Approval Process

If you have all of these things and qualify for financing, the next important thing to take note of is that the approval process takes time. For example, you can walk into a dealership in the US and be approved to leave with your new vehicle within a few hours. In the Philippines, most dealerships and lenders take some time to verify and approve the loan. So it could be a few days to a couple of weeks before your vehicle is released to you. 

Nonetheless, the process is relatively painless. Someone from the lending institution will likely call to verify details and perform a phone interview. Additionally, as an expat, they may send a service to verify your address and documents in person. This could include verification of employment as well. Think of it as a relatively noninvasive background check that provides assurance to the lender that you are who you say you are and that you do, in fact, have the means to make the repayment. 

Once the lender is satisfied and the loan is approved for underwriting, you and the dealership will be notified to coordinate the release date. Again, set your expectations that this will not be a same-day process. 

Interest Rates and Down Payment

It is also important to know that if you choose to finance through a Philippine car lender, you will likely need a down payment. This could be anything from 3% to 20% of the vehicle’s value. Obviously, the more down payment you can afford, the less expensive the vehicle will be over the long term in interest savings. 

Speaking of interest, this is where you need to pay careful attention to the terms offered to you. Vehicle loans in the Philippines can have interest rates from around 5% to 30% or more. I have not personally seen any extremely low-interest rates, such as 1-2%, in practice anywhere in the Metro Manila area. 

The bank will determine the interest rate based on the length of repayment, your overall financial risk, whether you have a cosigner, and your down payment. 

The last thing to be sure of is to clarify with the bank on early payment of the loan – sometimes you will still have to pay the full interest of the whole loan, or prepayment processing fees to do so. This varies from bank to bank, so make sure to understand the terms you are agreeing to before you sign on the dotted line.  

Something to Consider

Business in the Philippines can be very relational versus transactional sometimes, so being cordial and networking in the community is important in many aspects of daily life. This especially applies when making an agreement directly with some second-hand car lots, automobile shops, or car owners selling their cars personally. 

Typically, there has to be an existing relationship and some confidence that the buyer will be around to make the payment. Although direct loan options may not work for private person-to-person sales because the person selling doesn’t typically have the business capital to make this kind of long-term investment into a purchase, it doesn’t hurt to ask. In fact, I bought a motorcycle this way, but the agreement was with a business owner I had developed a relationship with and knew quite well.

Best Bank for Car Loans

Now that you’ve made it this far, I’ll give you some insight into the best bank in the Philippines for a car loan based on my experience and research. Understand that your background, situation, and needs may make this different, but this is the best in the Philippines based on my time as an expat there. Well, let me be more clear and say I’ll give you a handful of banks! 

If you do not have a company that is willing to help you get the car loan or a Filipino co-signer, then your best bank is BDO. While they do not offer the best interest rates, they are a solid bank with branches and ATMs all around the country. More importantly for this article, they will actually underwrite loans to foreigners.  Current applicants report BDO’s 2026 foreigner terms as roughly two years of residency on a valid visa with an ACR-I card and work permit, a minimum family income around ₱50,000 a month, and a 20% down payment, with rates starting near 7%.

That said, if you do have a company that can assist you or a Filipino co-signer, then there are several banks that are great institutions with much lower interest rates. Metrobank, EastWest, and BPI have new-car effective rates starting from roughly 6% to 11% (higher for used cars); BDO’s own published table runs from 7.5% for a 12-month term to 10.5% at 60 months. Of course, getting that rate will depend on your specific circumstances, but it is a much lower starting point than many other banks, and, of course, lowering the interest saves you money that you can use to go to Boracay or Palawan for the weekend instead!

Next Steps

Financing a vehicle in a new place where things function differently can be overwhelming. And actually spending money is never the fun part of the car-buying process, to begin with! 

That said, it is important to know where you can go to access the purchasing power that you will need to get on the road and have the freedom to experience and live in the Philippines at your own pace. Now you should have a good idea about what can be expected if you want to finance, and what alternatives are available if you do not qualify. 

I hope this will make your car hunting and buying a lot less stressful and a lot more exciting.  As always, never forget to carry an umbrella and tuloy kayo sa Pilipinas (welcome to the Philippines)! Maybe you can even ask the dealership for a freebie umbrella.

New Car vs. Used Car: Different Rates, Different Terms

Most of the figures above assume a brand-new car, but plenty of expats buy secondhand, and the loan math changes. Used-car loans carry noticeably higher interest: BPI’s own rates jump from about 9.88% to 11.19% per annum on new cars to 14.26% to 15.50% on used ones. EastWest shortens the term too, capping used-car financing at 48 months versus 60 for brand-new vehicles, and it finances only up to 70% of a used car’s appraised value versus 80% on a new one. Lenders also tend to set a hard age cutoff, commonly around 10 years old at loan maturity, so an older secondhand car may not qualify at all. If you are weighing a cheaper used car against a pricier new one, run both scenarios; the lower sticker price on a used car can be eaten up fast by the higher rate and shorter term. If financing does not work out, our full guide to buying a car as an expat in the Philippines covers cash purchases and dealership options.

Frequently Asked Questions

Can I get a car loan in the Philippines on a tourist visa?

No. Every major bank that lends to foreigners (BDO, BPI, Metrobank, EastWest) requires proof of continued residency, typically at least two years on a valid work or long-stay visa with a matching employment contract or an ACR I-Card. A tourist visa does not give you that history, so you would need a Filipino co-signer, an employer sponsor, or to wait until you have built qualifying time in-country. If you are not ready to commit yet, renting a car instead can cover your needs while you build the residency banks want to see.

Is there a minimum loan amount for auto financing?

Yes. BPI and EastWest both set a ₱200,000 (about US$3,190 at ₱62.7/US$1) minimum for new and used vehicles alike. If the car costs less than that, or your down payment covers most of it, some lenders will not process a loan that small and you would buy in cash instead. If your down payment is coming from savings abroad, our guide to sending money to the Philippines walks through the cheapest transfer options.

Do lenders require comprehensive insurance on a financed car?

Yes, as a standard loan condition. EastWest, for example, requires comprehensive cover with Acts of God (AOG) protection from an accredited insurer before releasing the vehicle. Budget roughly ₱20,000 to ₱50,000 a year (US$319 to US$798) for comprehensive cover on a ₱1,000,000 (US$15,949) car, on top of your loan payments.

Are used-car loan rates different from new-car loan rates?

Yes, by a wide margin. BPI’s rate table shows new-car loans around 9.88% to 11.19% per annum and used-car loans 14.26% to 15.50% on the same terms. EastWest also shortens the used-car maximum term (48 versus 60 months) and finances a smaller share of value. Factor this in before assuming a cheaper secondhand car is automatically the better deal.

What happens to my loan if I leave the Philippines before it is paid off?

The debt does not disappear. Auto loans are secured by the vehicle, so the bank’s recourse is against the car (repossession, if it is still in the country) and against any co-signer or guarantor on the loan. It will not follow you automatically the way an unsecured personal loan might, but it can hurt your standing with that bank and your co-signer’s finances.

Can I borrow cash against a car I have already paid off?

Some banks offer this as a separate refinancing product. EastWest’s AutoCash lets you borrow up to 70% of a car’s appraised value using the vehicle as collateral, with terms up to 48 months, but the car must be fully paid off and lien-free first. It unlocks equity in a car you own outright; it is not a way to add cash on top of an existing, unpaid loan.

Is a Filipino co-signer a legal requirement, or just a practical one?

Practical, not legal. Foreigners can be approved on their own if they meet the standard criteria: two-plus years of residency, sufficient income, and the right visa and ACR I-Card documents. A co-signer or employer sponsor is simply an easier path, especially before you hit the two-year mark or if your income alone does not clear the bank’s threshold. Holding a Philippines credit card for a year or two beforehand, and sorting out getting a Philippine driver’s license, both help build the local track record lenders like to see.

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