Short answer: BDO's auto loan finances brand-new and pre-owned cars for borrowers aged 21 to 70 at the end of the term with a total gross family income of at least ₱50,000 a month. The minimum down payment for a brand-new car for personal use is 20%, with up to five years to pay. BDO's official materials put the annual effective rate at about 7.50% to 10.50% for brand-new cars and 12.00% to 13.00% for pre-owned ones. Car loans are getting more expensive, though: the Bangko Sentral raised its policy rate to 5.00% on August 27, 2026, its third hike this year, and inflation jumped to 7.2% in September. The next Monetary Board meeting is on October 22.
PHBD1212Below: who qualifies, down payments and terms, the fees on top of the loan, insurance, what a loan costs over different terms and what to check in your disclosure statement.
Who qualifies
| Requirement | BDO's condition |
|---|---|
| Age | 21 to 70 at the end of the loan term |
| Income | Total gross family income of at least ₱50,000 a month, or its dollar equivalent |
| Locally employed | At least 2 years with the current employer |
| Self-employed | At least 2 consecutive profitable years in business |
| OFW | 2 to 3 consecutive years of employment abroad |
Down payment and term
| Minimum down payment | Maximum term | |
|---|---|---|
| Brand-new, personal use | 20% | 5 years |
| Brand-new, business use | 30% | 3 years |
| Pre-owned, personal use | 30% | 4 years |
| Pre-owned, business use | 40% | 2 years |
A pre-owned car must not be more than six years old, counted by year model, when the loan matures. So a 2022 model financed in 2026 can be paid over at most two years.
What a loan costs over different terms
Example: for a ₱1,000,000 car with 20% down you borrow ₱800,000. At an 8% effective annual rate, within BDO's published range for new cars, the monthly payment is about ₱25,069 over three years, with roughly ₱102,000 in interest, or about ₱16,221 over five years, with about ₱173,000 in interest. The longer term cuts the monthly payment by a third but adds about ₱71,000 of interest. Your actual rate depends on the term, the car and your profile, and banks often quote an add-on rate that looks lower than the effective rate; always compare the effective interest rate in your disclosure statement.
Fees on top of the loan
| Fee | Amount |
|---|---|
| Documentary stamp tax | ₱1.50 for every ₱200 of the loan |
| Chattel mortgage fee | Roughly 2% to 3% of the loan; you need an account with the Personal Property Security Registry before booking |
| LTO encumbrance fee | ₱380 |
| Notarial fee | ₱500 per document |
| Processing fee | Quoted on approval; varies by location |
| Release of mortgage after payoff | ₱500 |
On an ₱800,000 loan, documentary stamp tax alone is ₱6,000. BDO regularly runs promotions that waive part of these fees: its 2026 Deals on Wheels promo, for applications from August 1 to September 15 booked by November 15, waived up to ₱30,000 in fees on qualifying loans of ₱600,000 or more. Ask whether a current promo applies before you sign.
Insurance
Comprehensive motor insurance covering collision, theft, personal accident and acts of God is required for the whole term, along with the compulsory third-party liability cover required by the LTO. You can pay comprehensive insurance yearly, include it in the financing or take multi-year cover; promotions sometimes include free first-year insurance if you renew through BDO's broker. Compare the renewal premiums, since they add up over five years.
Before you sign
Under the Truth in Lending Act, the bank must give you a disclosure statement showing the amount financed, all finance charges and the effective interest rate. Read it, check the fees against the table above, and ask about early payoff charges. For other banks' car loans, see our car loan guide for the Philippines.
The booking deadline for BDO's Deals on Wheels promo is November 15, 2026, as of October 2026. If your application was filed between August 1 and September 15, 2026, get approved and booked by that date. Otherwise you miss up to ₱30,000 in waived fees and revert to standard rates, such as 10.50% effective for a 60-month new-car loan, published September 28, 2026. A new ₱500 collateral safekeeping fee applies if you leave documents unclaimed a month after payoff, then every six months. The Philippine car loan guide lists typical fees.
Because inflation hit 7.2% in September 2026, the BSP may raise its 5.00% policy rate at the October 22 and December 17, 2026 meetings. Banks often price new auto loans off those meetings, so a loan approved later could carry a higher effective rate than the September 28, 2026 sheet suggests. Under RA 11765 you may prepay a loan early, but check the amortized loan guide to see how prepayment and add-on quotes work.
In short
BDO's auto loan suits buyers with at least ₱50,000 monthly family income and 20% down for a new car. With the BSP at 5.00% after three hikes in 2026 and inflation at 7.2%, rates may keep rising, so lock in a fixed rate and the shortest term you can afford, and budget for fees and insurance on top of the monthly payment.
Before you sign, confirm the Deals on Wheels booking deadline of November 15, 2026 if you applied between August 1 and September 15, 2026, because missing it means paying standard fees and rates rather than the waived or discounted terms. Check your disclosure statement for the effective interest rate, not the add-on rate, and ask whether a new BSP rate hike after October 22 or December 17, 2026 will change your quoted rate before release. Verify that the ₱500 collateral safekeeping fee applies only if you leave documents unclaimed, and remember that under RA 11765 you can prepay without foregone interest. Acting before November 15, 2026 and locking a fixed rate protects your budget if inflation pushes loan pricing higher.