20% vs 30% Down Payment Car Loan 2026

Aditya Aman, author and expressway expert based in Manila, PhilippinesBy Published Sep 28, 2026Editorial PolicyLives in the Philippines and has driven nearly every Luzon expressway with his family.

On a ₱1,250,000 car over 60 months, 30% down instead of 20% puts ₱125,000 more down and cuts the monthly and the interest. The table shows how much at every term.

20% down, 60 months
₱20,967 a month on a ₱1,250,000 car
30% down, 60 months
₱18,346 a month on a ₱1,250,000 car
Banks that take the lower down payment
8 of 8

20% vs 30% down for your car, term by term

Pick your car or type its price. Each row is the bank with the lowest monthly payment for that term.

Car

Choose a brand

Over 60 months, 30% down instead of 20% puts ₱125,000 more down, lowers the monthly by ₱2,621 and saves ₱32,250 in interest.

Pay over20% down30% down
MonthlyInterestBankMonthlyInterestBank
12 months₱86,757₱41,089BDO₱75,913₱35,953BDO
18 months₱59,140₱64,525BDO₱51,748₱56,460BDO
24 months₱45,800₱99,189BDO₱40,075₱86,790BDO
36 months₱32,003₱152,100Maybank₱28,002₱133,088Maybank
48 months₱25,135₱206,500UnionBank₱21,993₱180,688UnionBank
60 months₱20,967₱258,000UnionBank₱18,346₱225,750UnionBank

Example car, ₱1,250,000, brand new, at the bank with the lowest monthly for each term. Total paid includes the down payment, not insurance or one-time charges.

How the monthly payment is worked out

UnionBank's 60-month add-on rate of 25.80% on a ₱1,000,000 loan, step by step. Most banks charge this way.

1Interest for the whole term: loan x add-on rate₱1,000,000 x 25.80% = ₱258,000
2Total to repay: loan + interest₱1,258,000
3Monthly payment: total divided by 60 months₱20,967
=As a yearly rate on the balance, that is about9.43% a year

Questions

Is 30% down better than 20%?

A bigger down payment lowers both the monthly and the total interest, because you borrow less. The trade-off is the cash you part with now. The table above shows the exact saving for your car at every term.

More on loan terms

Compare every bank for your car, or see what ₱20,000 a month can finance.