Document text
Car loan computation
Monthly amortization with an add-on rate, cash-out on release and what the vehicle really costs
Buyer: [YOUR NAME]
Vehicle: [MAKE, MODEL, VARIANT]
Bank or dealer: [NAME OF BANK OR DEALER]
1. The quote
What Amount
Cash price ₱ [AMOUNT]
Down payment ₱ [AMOUNT]
Amount financed ₱ [AMOUNT]
Term [YEARS] years — [N] payments
Add-on rate per year [RATE] %
Interest (finance charge) ₱ [AMOUNT]
2. What I pay
What Amount
Monthly amortization ₱ [AMOUNT]
Cash-out on release (down payment, fees, first-year insurance) ₱ [AMOUNT]
Total I pay ₱ [AMOUNT]
Paid on top of the cash price ₱ [AMOUNT]
Estimated true yearly rate on the declining balance [RATE] %
3. Ask before signing
Done To do
☐ The cash price and the price on installment, in writing
☐ The amount financed and the down payment
☐ The finance charge in pesos and the simple annual rate (Truth in Lending Act)
☐ All fees: chattel mortgage, processing, notarial, LTO transfer
☐ Insurance: first year included? who renews it?
☐ Penalty for late payment and for paying in full early
☐ Release date and the first due date
The rules Before the loan is made, the creditor must give you a written statement with the cash price, the down payment, the amount financed, the finance charge in pesos and centavos, and the finance charge as a simple annual rate on the outstanding unpaid balance (Republic Act No. 3765, Truth in Lending Act, s. 4). Add-on rate: interest is computed on the whole amount financed for the whole term and divided into equal payments — so the true yearly rate on the declining balance is almost twice the add-on rate. The «estimated true yearly rate» uses the N-ratio formula, an approximation; the rate in your disclosure statement is the one that counts. The vehicle usually stays mortgaged to the lender (chattel mortgage) until the loan is paid.
A loan worksheet, not financial advice. Rates, fees and insurance come from your quote. Checked 21 October 2026.