Should You Buy a Car on a Loan?
For us Filipinos, the ultimate dream is a simple one—to buy and secure a house for our family. While most of us dream of a better home, it’s also true that a good many of us end up buying a car instead -- sometimes as an early investment in preparation for a bigger and grander bucket list. Most of the time, it’s exactly what we need.
Yes, we are even willing to forget about fuel, depreciation and maintenance costs, and the countless hours spent in traffic as long as our family is safe and comfy. On the flip side, the gridlock on EDSA paints a sorry state of affairs that has somewhat become the embodiment of stress and anarchy in the Metro. With traffic and public transportation becoming a hot topic nowadays, so is acquiring the one thing that lets us traverse the urban jungle.
The burning question is: What’s stopping you from buying a car? Let me rephrase: If you do need a car, do you even have enough cash on hand to buy one? One of the best, if not the best, way to finance your purchase is through a car loan.
Many Filipinos are enjoying the convenience of getting their car financed through flexible and easy payment terms offered by lending institutions. If you’re having second thoughts and afraid to get a car loan, you should know that financing a car has never been so easy.
Of course, you still want to make sure your application goes as smoothly as possible. Make a checklist of requirements and research. If you’re not sure how much you can borrow, you can try Security Bank’s loan calculator here.
Another thing to note is that every bank has their own unique car loan programs: fast approval, lower interest rates, and free car insurance to name a few. To help in your car loan application, here are some tips you might want to consider:
- Research for banks with good rates. You might get overwhelmed with the numerous offers from different banks all with their enticing car loan options. Start doing your homework by researching banks that provide low interest rates. There are banks that offer 1-day approval with FREE first year comprehensive car insurance program—including acts of nature (perfect for the stormy Philippines)—that can protect your vehicle from accidents and damage.
- Go straight to the banks. There’s nothing wrong with going to multiple in-house car dealers for car financing, but the best and safest flexi car loan deals are with the banks. Chances are, you can get the better deal for lower rates, not to mention the peace of mind that you’re dealing with a credible financial institution.
- The bigger your down payment, the better. In principle, interest is charged as an add-on rate and not on diminishing balances, which means the effective rate is actually higher for car loans. You can lower interest expense by paying a higher equity portion. The bigger amount you pay upfront, the smaller your monthly amortization will be.
- Consider buying pre-owned cars. Some banks also let you use the car loan to finance the purchase of either a brand-new or pre-owned vehicle. In a nutshell, buying pre-owned is cheaper but is more advisable if you’re looking for something short term. In terms of quality, however, you have nothing to worry about because bank-repossessed cars are not broken down. Remember, these cars were not given up because they were failing but because owners couldn’t pay for them anymore.
Featured Articles
- Latest
- Popular
-
-
-
-
Fuel prices continue to rise this weekPaulo Papa . Sep 15, 2025
-
Suzuki PH rolls out XL7 Hybrid Black EditionPaulo Papa . Sep 15, 2025
-
-
-
All-new Fronx officially joins Suzuki PH stableRuben Manahan IV . Sep 12, 2025
-
-
Suzuki PH rolls out XL7 Hybrid Black EditionPaulo Papa . Sep 15, 2025
-
-
Recommended Articles For You
-
-
-
-
-
-
Honda PH: Be a better rider during lockdownRuben Manahan IV . Jun 25, 2020
Featured Cars
- Latest
- Upcoming
- Popular
-
AITO M9Price coming soon
-
-
Geely OkavangoPrice coming soon
-
Audi Q7Price coming soon
-
Audi Q8Price coming soon
Car Articles From Zigwheels
- News
- Article Feature
- Advisory Stories
- Road Test
-
BYD Cars PH debuts all-new Tang DM-iCesar Miguel . Today
-
Omoda, Jaecoo NEV sales breach 600k-unit mark worldwideRuben Manahan IV . Sep 16, 2025
-
Toyota Mobility Foundation turns over 3 Tamaraw shuttles to PGHCesar Miguel . Sep 16, 2025
-
Here’s what to expect at the Japan Mobility Show 2025Cesar Miguel . Sep 16, 2025
-
Coco in CDO: Toyota Tamaraw ambassador meets MSME ownersPaulo Papa . Sep 16, 2025
-
Check out JMC EV2’s key strengths, weaknessesCesar Miguel . Today
-
Here are the 7 stunning colors of the Omoda C5Paulo Papa . Today
-
Check out the GWM Ora 03’s key rivalsCesar Miguel . Sep 12, 2025
-
Here are the Ford Territory Hybrid’s strengths, weaknessesCesar Miguel . Sep 12, 2025
-
VinFast VF 5: top 3 reasons to buyPaulo Papa . Sep 09, 2025
-
How well do you understand traffic signs?Cesar Miguel . Sep 09, 2025
-
How car collectors can take advantage of Liqui Moly productsRuben Manahan IV . Sep 08, 2025
-
Do you still need to wash your car after it rains?Cesar Miguel . Jun 12, 2025
-
What should you visit first at MIAS 2025?Cesar Miguel . Apr 11, 2025
-
Do you really need 4x4 for overlanding?Cesar Miguel . Mar 26, 2025
-
Ford Everest Sport Special Edition: ‘tough’-tier SUVPaulo Papa . Sep 15, 2025
-
Toyota Corolla Cross GR-S HEV: sporty yet sustainablePaulo Papa . Sep 08, 2025
-
ELECTRIA: JMC EV3 - cutesy city slickerCesar Miguel . Sep 04, 2025
-
First drive: Here’s why the Li Mega is the ideal pick for those who wants to be chauffeuredPaulo Papa . Aug 27, 2025
-
GWM Cannon: range dayPaulo Papa . Jul 29, 2025
