Summary
The market is segmented by Vehicle Type (Passenger Cars, Commercial Vehicles), Finance Type (Bank Loans, NBFCs, In-house Dealer Financing), Tenure (Up to 3 Years, 3–5 Years, above 5 Years), and Region (Luzon, Visayas, Mindanao).
Market Overview
Philippines Used Car Finance Market Overview
The Philippines Used Car Finance Market was valued at PHP 46.8 billion in 2018 and expanded to PHP 78.1 billion by 2023, registering a strong CAGR of 10.8% during 2018–2023. The lending landscape is largely dominated by NBFCs, accounting for 69.5% of total financing, followed by banks at 29.4% and captive financiers at 1.2%, highlighting the preference for flexible and faster credit options. In terms of vehicle type, sedans lead used car financing with a 39.2% share, driven by rising domestic usage, followed by SUVs at 22% and hatchbacks at 9.9%. On the demand side, young buyers aged 21–30 years form the largest end-user segment at 35.8%, primarily consisting of college students and early-career professionals seeking affordable vehicles with accessible financing. Additionally, the middle-income population, representing around 40% of the population in 2023, is expected to remain the key growth driver, reinforcing sustained demand for used car financing across the Philippines.
Philippines Used Car Finance Market Definitio
Philippines Used Car Finance Market: Philippines Used Car Finance Market has been defined as the total credit disbursement by banks/NBFCs and Captive finance companies towards the financing of used passenger and commercial cars.
Philippines Used Car Market: The used car market includes the revenue generated through number of cars sold by organized and unorganized players within the domestic territory of Philippines through both online as well as offline channels. Sales of both passenger as well as light commercial cars have been taken into account while calculating total sales volume. Heavy commercial vehicles such as trucks and buses have been excluded from the model.
Used Car: Used cars refer to vehicles that have been previously owned and driven by one or more individuals before being offered for resale. These vehicles may vary in age, mileage, condition, and features, providing buyers with options that fit their budget and preferences. All kinds of passenger cars which includes the following types- crossover, luxury sedan, entry level sedan, full size sedan, luxury SUV, full size SUV, convertible, super cars, coupe, hatch back, luxury hatchbacks, and SUV 4*4 (pick-up trucks) and light commercial cars like minivans, pickup trucks etc., MPVs/AUVs have been considered.
Financial Institutions: Financial Institutions have been defined as all the commercial banks (domestic and foreign) and its subsidiaries operating in Philippines extending various types of auto loans for used vehicles including both passenger and commercial vehicles.
NBFCs: Non-Banking Financial Institutions include captive and non-captive finance companies extending auto loans that are registered with Central Bank of Philippines.
Captives: Captive Finance Company has been defined as the subsidiary whose purpose is to provide financing to customers buying the parent company’s auto product.