Public commute had been very challenging in the Philippines and the pandemic made it worse. Now, more than ever, you would want to consider buying a car a.k.a., availing a car loan. I heard it is relatively easy to get a car loan approved if you are locally employed. If you can show a stable source of income, a decent bank account and a thumbs up from the people who conducts home background checks (CIs), for sure you will get an immediate bank approval. However, it is not the same for an OFW (Overseas Filipino Worker) like me.

First week of September 2021, I applied for a car loan to get a seven-seater family car while I was in quarantine from an overseas trip. I was mostly overseas so I never bothered to replace my 2005 model sedan before as it still serves the purpose for my son back home. However, due to pandemic, I intent to get more family members to safely travel with me while I am in the country. While going through the process, I almost gave up a few times as it was extremely difficult for an OFW like me. Luckily, after seven weeks of requirements resubmission and waiting, it went through successfully. Finally, I got my car out of the dealer last October 22, 2021!

So, for OFWs out there who are thinking of getting a car loan this pandemic, hopefully my pointers below, out of the personal experience I had, can help you to have a more hassle-free approval and car release. Good luck!

1. If you have a spouse or child (more than 21 years old) who has a stable source of income and a bank statement, it is advisable that they apply for a car loan and have you as a co-borrower instead.

2. If you need to be the primary borrower, ensure that you submit your application when you are already in the country. Banks do conduct background checks over the phone with no access to messaging apps like Whatsapp or Viber so you need to be reachable via mobile on a local number.

3. If your spouse or child (more than 21 years old) do not have any source of income and need to act as your co-borrower, they can declare remittance as their source of income instead. You only need to provide proof of monthly remittance to them. They also need to have a bank statement that has been active for at least a year.

4. Ensure all data submitted matches your answers during the interview including the down payment that you are planning to pay.
NOTE: your car sales agent should be giving this figure to you

5. Ensure that you and your co-borrower or whoever you declare will drive the car has a valid driver’s license already.

6. Ensure that the home address you declared is EXACTLY the same as your proof of billings (including Brgy. Certificate) and any other documents that you will sign during the release of your car.
NOTE: Even a slight discrepancy may cause you extra few hours of waiting for your car to be released.

7. Have one of your colleagues overseas or better yet, somebody from your HR ready to send a confirmation of your current employment to the company.
NOTE: Using company email here is a MUST

8. Have your return trip ticket to overseas ready

9. Tips for the home background check:
a. Be extra nice to the person doing the background check. No matter how they dress up or represent
themselves, they have a significant take to your approval!
b. Ensure you can show a proper car park at home
c. Ensure you have 3 names of your neighbors and 3 names of friends or people you work with who are
ready to provide you a good reference
d. Ask the person conducting the check to which bank are they tied up with. Normally, the dealership
submits the loan application to multiple banks so it will be helpful to track who had done the checks
already so your car sales agent can quickly follow through.

10. Once your car loan is approved, please ensure you allot one full day to release the car as there will be a lot of papers to sign.
NOTE: You better ensure a consistent stroke on your signatures. You will sign A LOT so if you get tired, just rest first. I heard stories of people who got the release of their car delayed due to inconsistent signatures!