Owning a car in the Philippines is more essential than ever, especially as public transportation struggles with congestion and long wait times.
However, buying a car—especially an electric vehicle—often means securing a loan.
With over ₱476 billion in outstanding auto loans in the country as of December 2023, understanding car loan interest rates in the Philippines is crucial for making a smart financial move.
This guide helps you compare rates, financing options, and key factors so you can choose the best car loan for your needs.
Car Loan Interest Rates in the Philippines: 2025 Overview
Note:
Rates and terms may change. Always confirm directly with banks.
Key Factors That Affect Car Loan Interest Rates
Understanding what influences your loan rate can help you lock in a better deal:
1. Credit Score
Higher scores = lower interest rates.
Low scores may lead to stricter terms or higher costs.
2. Down Payment
The bigger the down payment, the lower the interest rate and monthly payment.
3. Loan Term
- Short-term loans = Lower interest rates but higher monthly payments.
- Long-term loans = Higher total interest but easier monthly installments.
4. Car Type
Brand-new cars usually have lower rates than second-hand vehicles.
Electric cars might involve different financing deals, including incentives.
5. Bank Policies
Different banks have different offers, bundles, and promotions that impact your final cost.
FAQs About Car Loan Interest Rates in the Philippines
Q: What is the average car loan interest rate in the Philippines?
A: Rates range from around 4.63% to 46.39% per annum, depending on the bank, loan type, and customer profile.
Q: Which bank has the lowest car loan interest rate?
A: Metrobank offers one of the lowest at 3.98% (one-month advance).
Q: Does a longer loan term mean cheaper monthly payments?
A: Yes, but it usually means paying more total interest over time.
How to Choose the Best Car Loan
When shopping for car financing in the Philippines, remember:
- Compare offers across multiple banks.
- Negotiate terms where possible.
- Calculate total costs (not just monthly payments).
- Choose a loan that balances affordability with long-term savings.
Ready to Drive Home a Smarter Choice?
At BYD Cars Philippines, we offer not just incredible electric vehicles, but also expert support in helping you navigate financing.
Explore BYD’s electric car models or visit our showroom to find a vehicle—and a financing plan—that fits your lifestyle!
