Expats’ Guide to Owning a Car in the Philippines
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Fully owning land in the Philippines may be a no-go for expats, but vehicles are an entirely different matter. Land ownership is governed by Republic Act no. 7042, or the Foreign Investments Act of 1991, which limits foreign ownership to just 40%. Vehicles, on the other hand, are not limited for expats, making them easier to get.
Also read: Expat’s Guide to Owning Land in the Philippines
If you’re the type who would want to get your hands on the latest make and model of your favorite car/vehicle, then you’re in luck. Car ownership here generally extends to whether or not you qualify for a car loan (or if dealers will let you buy one outright).
The best thing about getting a car from the dealer is they tend to take care of everything for you, especially when it comes to getting vehicle insurance (they usually have a list of those they trust) or the dreaded process of vehicle registration.
Car loans are hard to come by if you’re an expat, but with BDO they’ll make it easy for you. As an expat, you’ll need to satisfy these requirements to be eligible for an auto loan/car loan:
- At least 21 years old but not exceeding 65 at the end of the loan term
- Residing in the Philippines for at least two years
- Minimum gross family income of P50,000 per month
- Stable source of income from employment or business:
- if locally employed, at least 2 years with the company
- if self-employed, at least 2 consecutive profitable years of operation
If you’re qualified for a BDO Auto Loan, then prepare the following documents for your application:
- Alien Certificate of Registration (ACR) with Work Permit
- For locally-employed individuals:
- Latest Income Tax Return (ITR), BIR Form 2316, or payslip
- Certificate of Employment with Salary
- Current employment contract
- For self-employed individuals:
- Photocopy of Audited Financial Statements for the last 2 years with your latest ITR
- Bank Statements of Photocopy of Passbook for the last 3 months
- Certificate of Business Registration
- Proof of other income (if any)
Once you have these documents, just visit any BDO branch and tell them you want to get an Auto Loan. They’ll give you different makes and models to choose from, depending on what you want and what you need. If you’re struggling to decide, then our guide on choosing a car will help you out.
Also read: Expats’ Guide to Owning a Car in the Philippines
Image courtesy of negativespace.co
