Aiming to grab a preloved car, eh? Whether you are someone on a budget who is looking for his first car or someone looking for an additional car for his growing family… who is also on a budget, we got you covered. Where to get yours, you ask? No worries, friend. The options are many and we have listed here 5 of the best and well-known 2nd hand car dealers in the Philippines that can hook you up with a certified quality used car without burning through your available cash.
Banks and Private Car Financing Companies
But first, it’s best that you decide first whether you’re going to apply at a bank or a private car financing company. Which is better? Obviously the huge similarity is that you can get the “financing” option unlike with individual sellers where you have got to have the cash upfront. About the differences though:
Banks
– Generally offer lower Interest rates and are considered to be less expensive overall
– Usually offer longer payment terms that reach up to 5 years. On the other hand;
Private Car Financing Companies
– Are well-reputed to be faster in terms of processing. You need the car by next week? You got it.
– Have less strict qualifications and thus have a higher approval rate
– Also requires less documents
Looking at this makes banks look like they don’t have that much of an edge – which is a sensible inference but you have to keep in mind that to many people, the interest rate is a really huge deal. If you want to save the most, you may want to consider banks but if you think that the speed and higher chance for approval are worth the few extra decimals of interest rate, then private companies are the best choice. It’s still a matter of individual preference after all.
Now onto our list, let’s start it off with a well-know bank;:
BPI
Bank of the Philippines has the title of being the first bank in South East Asia. Since 1851 (their founding year) their business, products and services have played a significant role in many Filipino’s daily life, as well as in the country’s increasingly expanding and evolving economy and yes that includes their role as one of the leading banks in car financing both for brand new automobiles and secondhand ones.
Auto Loan Details:
– 20% to 50% Down Payment
– Maximum unit age is 5 years
– Minimum Loan amount of PHP 200,000
– Interest rate in arrears is 8.87% to 10.43% and with one-month advance 9.21% to 10.45%
– Payment term is 12-60 Months
Eligibility:
– Must be a Filipino Citizen
– Between 21-65 years old
– Must be Employed Full-Time or an owner of a DTI-registered business
– Income is above PHP 40,000
TFSPH
Toyota Financial Services Philippines. Being one of the most prominent manufacturers in the country, it has established a strong base of loyal customers. Known for their 211-point inspection system where they evaluate a vehicle through rigorous examination using their tech and certified assessors, they promise that each sale, each car which they call Toyota Certified Used Vehicle (TCUV, or simply, Toyota Certified) is an extension of their gratitude towards the loyalty of their customers for many years.
Auto Loan Details:
– 20% to 35% Down Payment
– Maximum unit age is 10 years
– Payment term is 12-60 Months
Eligibility:
– Must be a Filipino Citizen
– Between 21-65 years old
– Must be Employed Full-Time for 2 years or an owner of a DTI-registered business
– Minimum income of PHP 30,000 to PHP 40,000
Security bank
Next on our list is Security Bank. With customer-centricity at the forefront, the new Security Bank promises to put customers first and craft personalized solutions for their needs. Underlining its value to the Philippine market, Security Bank is an independent bank with a solid niche among the mass affluent Filipino-Chinese community. The Bank’s three core businesses are managed separately to focus on their respective markets and they operate with a high degree of synergy among each other; Wholesale Banking, Financial Markets, and Retail Banking which includes their car financing services.
Auto Loan Details:
– 20% to 50% Down Payment
– Maximum unit age is 11 years
– Standard interest rate is 6.77% to 37.63% and with one-month advance 6.02% to 36.38%
– Payment term is 12-48 Months
Eligibility:
– Must be a Filipino Citizen
– Between 21-65 years old
– Minimum joint monthly gross income with spouse of PHP 20,000
– If Employed, must be a regular employee for 2 years or a permanent officer-rank employee
– For Corporations, must be duly registered to operate as a legal entity in the Philippines and the business must be in operation for at least three (3) years.
– If owner of a start-up business, co-makers / sureties will be required and the business must have strong prospects/potential based on evaluation.
GoDrive
One of the leaders in terms of being a pre-Loved cars online marketplace in the Philippines. GoDrive is the Philippines’ authority in online marketplace for matching interested and responsible buyers to quality pre-loved car units. The team offers second-hand units which are being sold by dealers and private sellers, as well as repossessed units from the financing company Global Dominion Financing Inc., its mother institution. Through this platform, Filipinos are empowered to pick the best units at their fingertips, without the need to leave their houses. And with brand new vehicles which are going to be available in their market soon, their services can only continue to grow and expand.
Auto Loan Details:
– 30% Minimum Down Payment
– Maximum unit age is 10 years
– Interest rate is as low as 1.3% plus a processing fee of 5.5%
– Payment term is 12-36 Months
Eligibility:
– Must be a Filipino Citizen
– Between 21-65 years old
– Must be Employed Full-Time for a year or an owner of a DTI-registered business
– Minimum income of PHP 30,000
PSBank
PSBank has gone a long way from its humble beginnings as a neighborhood bank since it first opened its doors to its clients in1960. It was the very first bank that offered Monday to Saturday banking with no noon break, extended banking hours, online electronic data system, and banking-by-mail.
PSBank was recognized as the 2nd strongest bank in the Philippines by The Asian Banker, in its AB500 annual ranking 2016-2017 edition. The ranking is based on a financial scorecard that ranks the 500 largest Asian banks according to their financial and business performance. A reassuring fact to consider should you decide to have a bank process your car financing needs.
Auto Loan Details:
– Minimum of 20% Down Payment
– Minimum Loan amount of PHP 100,000
– Standard Interest rate is 5.58% to 28.76% and with one-month advance 4.85% to 27.70%
– Payment term is 12-60 Months
Eligibility:
– Filipinos or foreigners holding permanent resident / immigrant visas (permanent residents) and certain non-immigrants and embassy officials (temporary residents)
– Between 21-65 years old
– If employed, must have a tenure of at least two years
– If engaged in business, must be operating profitably for the last two years
– Gross monthly family income of at least PhP30,000
Which should I pick?
We can only guide you and introduce you into the most basic details and qualifications of some of the best car dealers in the Philippines. At the end of the day, you are still going to make the decision for yourself and you may even want to check other dealers that are not on this list. If you want to have an idea where to start though, your best bet is to directly engage with the listed dealers and let their agents facilitate your inquiries. You can try visiting their website or their facebook page. Why don’t you try and send them a message now?