Skip to content

How to Get a Lower Car Loan Rate in the Philippines (2026)

The rate is set; the deal is not

0.15% off stated rates for BPI Preferred NEXT clients

No Philippine bank states a rate you can talk down at the branch. A bank's own partner-brand promo can add a discount worth ₱100,000 or more on top of its standard rate.

On this page, 10 sections
  1. In short
  2. Are car loan rates negotiable in the Philippines?
  3. What actually lowers the rate, on the bank's own table
  4. Do existing clients get a discount?
  5. Do promos lower the rate, and what is the catch?
  6. Can a dealer's partner bank get you a better deal?
  7. How do you compare two offers on the same basis?
  8. Can you choose your own insurer to cut the total cost?
  9. Can you refinance to a lower rate later?
  10. Questions

In short

What actually moves the number is the term, whether you pay one month in advance, and new versus used. On BPI's own table, the 60-month brand-new rate is 31.01% add-on, an 11.19% effective rate.

That is against 15.50% effective on a used car at the same bank. There is also no legal ceiling on car loan interest, so a bank is free to set its own rate within what it lists.

BPI brand-new, 60 months
31.01% add-on / 11.19% effective
Metrobank, 60 months, one month advance vs in arrears
29.13% vs 30.26% add-on
Security Bank, 60 months, standard vs one month advance
32.52% vs 31.29%
Regulatory ceiling on car loan interest
None (BSP MORB Sec. 305)
One bank client discount
BPI Preferred NEXT, 0.15% off stated rates
Metrobank refinancing fee
2% of balance or ₱15,000, whichever is higher

Are car loan rates negotiable in the Philippines?

Not in any stated sense. None of BPI, Metrobank, Security Bank or EastWest states that a borrower can request a lower rate.

None state that a relationship manager has room to move on it either.

There is also no ceiling that limits what a bank can charge. BSP's own rulebook states that interest on any secured or unsecured loan, credit cards aside, is not subject to a regulatory ceiling.

A bank sets its own stated rate, and that rate is what you get.

What actually lowers the rate, on the bank's own table

Three things move the stated number: a shorter term, paying one month in advance instead of in arrears, and choosing brand new over used.

Metrobank and Security Bank both print two columns for the same term, one for standard or in-arrears payment and one for paying a month ahead. The advance column is always cheaper.

BPI does not offer that choice, but its brand-new table is consistently cheaper than its second-hand table at every term.

Compare within one bank and one basis. BPI and Metrobank label their figures as add-on and effective.

Security Bank and EastWest print numbers without saying which basis they use. Do not line those two up against BPI's effective column.

Add-on rate by term, one bank at a time
Bank12 months36 months60 months
BPI, brand new5.43%17.76%31.01%
BPI, second hand7.89%24.80%44.32%
Metrobank, in arrears5.19%16.90%30.26%
Metrobank, one month advance4.45%15.96%29.13%
Security Bank, standard5.61%18.18%32.52%
Security Bank, one month advance4.80%17.16%31.29%
EastWest, in advance5.91%17.15%29.11%

Do existing clients get a discount?

Only one is stated. BPI Preferred NEXT clients get a 0.15% discount versus BPI's stated rate, plus terms up to 7 years on select brands and models.

No general loyalty discount for ordinary depositors appears on any other bank's page.

BPI Preferred NEXT discount
0.15% off stated rate
BPI Preferred NEXT extended term
Up to 7 years, select brands and models

Do promos lower the rate, and what is the catch?

Sometimes, but always with a condition attached. BPI's Dream More Deals promo runs through 30 September 2026.

It offers a discounted rate, without stating the actual figure, on brand-new loans of at least ₱500,000. The catch: the term must be exactly 60 months, and advance payment or pre-termination is barred for the first three years.

EastWest states its stated rates do not apply to dealer all-in promos or agent-referred accounts with a premium attached. A promo rate and EastWest's standard table are not directly comparable either.

See our roundup of what is currently running and the trade-offs in a promo rate versus a standard one.

3 of 3 still to check

Can a dealer's partner bank get you a better deal?

Yes, on specific brand promos. Hyundai's September 2026 sales promo gives an extra per-model discount to buyers financing through its partner banks, BPI, EastWest or RCBC.

For example, that is ₱10,000 off a Venue 1.6 GL 6MT and ₱100,000 off a Custin.

This is a brand discount layered on a bank's standard rate, not a separate negotiated rate from the bank itself.

Hyundai partner banks
BPI, EastWest, RCBC
Example discount
₱100,000 off a Custin, through 30 September 2026

How do you compare two offers on the same basis?

Use the effective interest rate, not the add-on figure a dealer or bank may lead with. BSP requires every lender to disclose the EIR consistently across all loan documents and marketing material.

This lets a borrower compare offers without doing the add-on math themselves.

Ask for the bank's disclosure statement before signing. It must be given to you before the transaction is finalized.

Can you choose your own insurer to cut the total cost?

Yes, in most cases. When a bank requires insurance as a condition of the loan, BSP rules say the borrower should be free to choose the provider.

That choice is subject to standards the bank discloses upfront.

BPI's own help center confirms this for accounts without a free-insurance package: you may insure with your preferred company. Free-insurance accounts must either renew with BPI's partner insurer or pay the full first-year premium to switch.

Right to choose insurer
BSP Circular 1160, subject to the bank's disclosed standards
BPI exception
Free-insurance accounts must renew with the partner insurer or pay the full premium to switch

Can you refinance to a lower rate later?

BSP rules give every borrower the right to prepay in whole or in part before maturity, with any prepayment cost disclosed upfront.

Metrobank charges a processing fee for a loan takeout or refinancing, 2% of the outstanding balance or ₱15,000, whichever is higher. It also charges a separate ₱7,500 pre-payment processing fee.

Weigh that fee against the rate difference before refinancing. See reducing what you pay in interest for the full prepayment picture across banks.

Metrobank refinancing costs
FeeAmount
Loan takeout or refinancing2% of balance or ₱15,000, whichever is higher
Pre-payment processing fee₱7,500

Questions

Are car loan rates negotiable in the Philippines?

No bank states a negotiable rate or a relationship-manager discretion policy. The stated table is the rate; what changes it is the term, payment timing and new versus used, not a conversation at the branch.

Is there a legal cap on car loan interest?

No. BSP's MORB Sec. 305 states that interest on any secured or unsecured loan, other than credit card receivables, is not subject to a regulatory ceiling.

Does a bigger down payment get me a lower rate?

No. BPI, Metrobank, Security Bank and EastWest all vary their stated rate by term, payment timing and new versus used only, never by down payment.

Do existing bank clients get a discount?

Only one is stated: BPI Preferred NEXT clients get 0.15% off BPI's standard rate, plus terms up to 7 years on select brands and models.

Can I get a discount through a car brand's partner bank?

Yes, on active brand promos. Hyundai's September 2026 promo, for example, gives an added per-model discount when financing through BPI, EastWest or RCBC, on top of the bank's own rate.

How do I compare two loan offers fairly?

Compare the effective interest rate, not the add-on rate. BSP requires every lender to disclose the EIR consistently, so it is the one figure that is comparable across banks.

Can I refinance my car loan to a lower rate later?

You have the right to prepay, but refinancing has a cost. Metrobank charges 2% of the outstanding balance or ₱15,000, whichever is higher, plus a ₱7,500 pre-payment processing fee.

Read next

Answer 5 questions to see the three car loans that fit you, or browse every car loan guide.