DON?T be surprised if the country?s city streets get even more clogged with brand new vehicles. You can blame it on low interest rates that have made automobiles within reach of an increasing number of Filipinos.

There was a time when getting a brand new car through a loan would mean paying an interest of over 10 percent a year, such that at the end of the five-year term, you would effectively have bought the equivalent of one and a half cars.

As such, brand new cars were limited to those with a sizable monthly income. The rest had to make do with buying the best second-hand car they can afford or just make do with public transportation.

But these days, because the banks have more money to lend out and competition for customers has become even stiffer, interest rates are at their lowest.

For example, BPI Family Bank, one of the country?s biggest consumer banks, offers a one-year loan for a brand-new car at an interest rate of only 5.15 percent or 33.47 percent at the end of a five-year term.

Credit card companies, by comparison, charge over 3 percent a month or at least 36 percent a year. It has thus become much easier to get a car than to buy something else on credit with a credit card company.

But then again, credit card companies do not require collateral while a bank can always take back the car if a customer fails to make the payments.

BPI offers a minimum loan amount of P200,000 and the downpayment required is 20 percent of the car?s value. To be eligible, borrowers must have a combined monthly income of P30,000.

BDO Universal Bank, meanwhile, charges an annual interest rate of 6 percent on a car loan for an effective interest rate of 45.98 percent at the end of a maximum six-year loan period.

Under its Metrocar loan program, Metrobank offers one of the lowest interest rates. Minimum loan amount is P250,000, while the minimum downpayment required is 20 percent of the vehicle?s net selling price. Payment terms range from 12-60 months and amortization can be made through post-dated checks or an automatic debit arrangement from the deposit account. The bank also boasts of ?fast? approval and even provides assistance in sourcing vehicles. PSBank, while offering higher rates than its parent bank, lures consumers with its 24-hour loan approval and prompt payment discounts.

And as if the low rates were not enough, consumer banks are also attracting clients through freebies and perks to go with the loan.

BDO has introduced a ?Deals on Wheels Program,? for example, where successful car loan takers can get a free gas card worth P1,000 and the borrowers can also enjoy BDO Rewards points throughout the loan life.

Minimum loan amount starts at P100,000 and the required down payment for the brand new car is 20 percent. The rest can be paid back using a number of payment options such as the issuance of postdated checks.

Qualified to borrow are Filipinos 21-65 years old with a gross family income of P50,000. Even first-time borrowers are eligible to take out a loan. Be ready to submit income tax returns, certificates of employment and other documents to show that you are capable of paying back the loan.

The Philippine National Bank, meanwhile, recently introduced its own ?Gear Up!? auto fair at the PNB Financial Center Parking Lot. Car loans with as low as 4.21-percent interest rate for a 12-month term are offered, but only to those who will come to the auto fair.

BPI has also extended its BPI Family ?Auto Loan Real Thrill? campaign, under which borrowers who will get loans until April 15 this year can get a free GPS. The minimum amount financed should be P700,000 while the minimum term is 36 months. The vehicle should be brand new, for private use and delivered by May 2.

Banks are not the only sources of financing.

Auto industry leader Toyota Motor Philippines Corp., for example, is riding on the financing bandwagon through Toyota Financial Services Philippines (TFS).

Toyota first vice president for vehicle operations Rommel Gutierrez said in an interview that in-house financing schemes make it even easier for consumers to acquire brand new vehicles.

?Toyota dealers and TFS collaborate to make sure Toyota customers get the best purchasing experience through its quick and convenient one-stop shop financing service. Customers only need to talk to a Toyota dealer marketing professional who can assist them in all their vehicle purchase requirements,? he added.

There are also financing companies that offer loans. They require less paperwork, but do charge significantly higher rates.

Thus, with the low rate environment in the market today, it may be better to just go to a bank and endure the paperwork. At least, at the end of it, you get a brand new car without having to pay through the nose.