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What is boundary hulog?

“Boundary hulog” refers to acquiring a vehicle by making monthly, weekly, or daily payments over a specified period. This approach is especially popular among Grab drivers who want to own a car without a bank loan. Once all the payments are completed, the vehicle’s ownership is transferred from the operator to the driver. 

If you’re an active Grab driver who doesn’t own a car and is interested in a boundary hulog scheme, this blog post is for you.

Boundary Hulog Contract Inclusions

Entering a boundary hulog agreement requires a contract between the Grab operator and the driver. The contract varies from operator to operator, but these are the usual arrangements that you will encounter. 

  1. The operator must pay the amortization. 
  2. The driver will pay the operator PHP 1,000 daily (free on coding days).
  3. The driver must have a fund for car maintenance, repairs, and registration renewal, which amounts to PHP 100 per day. All other expenses for the car not covered by this fund will be shouldered by the driver.
  4. The garage should be provided by the driver.
  5. Mandatory vehicle inspection on weekends (Saturday or Sunday).
  6. The driver is not allowed to sub-lease the vehicle.
  7. The driver has to cash out PHP 15,000. 

These amounts are estimates and will change depending on your contract with the car owner/operator.

Grab Operator Responsibilities

The parties involved in a boundary hulog agreement are the Grab operator (or car owner) and the driver. To sort things out, listed below are the responsibilities of the operator:

  1. Payment of amortization for the car loan
  2. Weekly inspection of the vehicle
  3. Renewal of required franchise for Transport Network Vehicle Service (TNVs)

Grab Driver Responsibilities

A driver’s responsibility mainly centers around paying on time and following the conditions provided by the operator. These are the driver’s responsibilities:

  1. Pay cash out of PHP 15,000
  2. Provide a garage for the car
  3. Daily payment of PHP 1,000 to the operator
  4. Save PHP 100 per day for repairs, maintenance, car registration renewal, and insurance
  5. Pay for other car expenses not covered by the PHP 100 daily savings
  6. Bring the car to the operator 1x a week for inspection
  7. Bring the car to an auto shop for repairs and maintenance

Related Article: Boundary Hulog for Motorcycle Users

Anong Car Units Ang Pwede Mong Makuha sa Grab Boundary Hulog?

Grab allows sedans, AUV’s, and SUV’s. Sedans and compact vehicles are categorized under the GrabCar service, while executive sedans, AUVs, and SUVs are categorized under the GrabCar+ service. Please note that Grab does not accept pick-up trucks, vans, and hatchbacks.

Take note that Grab has a rule regarding the vehicles that are eligible for operation. According to Department Order No. 2015-011, TNVs must be sedans, AUVs, SUVs, or similar vehicles that are not more than three years old from their manufacturing date at the time of registration with a Transport Network Company (TNC). However, these vehicles can remain in operation for up to seven years from their manufacturing date.

The following list includes some cars that Grab accepts and their quick specifications.

Toyota Vios

The Toyota Vios is a top choice for GrabCar drivers due to its reliability, efficiency, and practicality. With its renowned reputation for durability and low maintenance costs, the Vios ensures minimal downtime, which is crucial for maximizing earnings in the ride-hailing business. Its fuel-efficient engine helps drivers save on operating expenses.

Body TypeSedan
Number of Seats5
Fuel TypeGasoline
TransmissionManual | CVT
Warranty 3 Years (100,000 km) – 5 Years (100,000 km)
Price RangePHP 732,000 to PHP 1,039,000
Toyota Vios Features

Toyota Fortuner

The Toyota Fortuner presents impressive features and capabilities suitable for GrabCar+ drivers. Its robust design ensures reliability and durability, which are crucial for long hours on the road. The spacious cabin offers ample room for the driver and passengers, enhancing comfort during extended drives. The Fortuner’s powerful engine delivers smooth acceleration and maintains performance even when fully loaded.

Body TypeSUV
Number of Seats7
Fuel TypeDiesel | Petrol
TransmissionAutomatic | Manual
Warranty 5 Years (60,000 km) – 10 Years (100,000 km)
Price RangePHP 1,764,000 to  PHP 2,595,000
Toyota Fortuner Features

Nissan Teana

The Nissan Teana is an excellent choice for GrabCar+ for its comfort, maneuverability, and reliability. The Teana’s engine, paired with the XTRONIC CVT transmission, provides a seamless and efficient driving experience ideal for city driving. Additionally, the car offers a spacious and well-designed interior, enhancing the overall comfort for both driver and passengers, making it a standout option for a premium ride service.

Body TypeSedan
Number of Seats5
Fuel TypePetrol
TransmissionAutomatic
Warranty 3-year/36,000 mile limited warranty;
5-year limited powertrain warranty
Price RangeStarts at 435,000 pesos
Nissan Teana Features

Grab’s current fleet includes a variety of vehicles. Here are car models that Grab classifies into GrabCar and GrabCar+.

GrabCar

  • Toyota Vios
  • Hyundai Accent
  • Honda City
  • Mitsubishi Mirage
  • Mitsubishi Lancer

GrabCar+: 

  • Toyota Fortuner
  • Mitsubishi Montero Sport
  • Nissan Teana
  • Hummer

Looking for Grab Ready Car in the Philippines

There are Facebook groups where Grabcar operators post their vacancies for drivers and cars that are open for boundary hulog system. You can connect and contact them through these Facebook groups:

Frequently Asked Questions

✔️ What are the requirements for boundary hulog?

Drivers need to prepare their cash downpayment, identification documents, and driver’s license.

✔️ Where is the location of the operator?

Grab boundary hulog operators that post in Facebook groups are typically located in areas with high demand for transportation services, such as Metro Manila and Cebu.

Check GRAB MATCH ( wanted Grab Driver/Operator) hulog boundary and Look for hulog boundary grab car unit Facebook groups to find Grab boundary hulog operators.

✔️ Is the cashout negotiable?

The negotiability of cashouts largely depends on factors such as the demand for Grab services in a particular area, the condition and type of vehicle being leased, and the terms set by individual operators. While some operators may be open to negotiating the cashout amount, others may have fixed rates depending on market conditions and their financial considerations.

✔️ How can I contact the operator?

You can send a direct message to them on Messenger or call them through the phone numbers that they include in their posting on Facebook groups.

I’ve been in the Grabcar business since 2017. During that time, the LTFRB doesn’t care much about TNVS industry and other ride-sharing platforms. The driver’s income was also higher because Uber and Grab are still competing with one another. As of this writing, I am still operating my business but this time I already have my franchise issued by the LTFRB which allow me to legally operate my business. This business is not easy to operate but it is very rewarding. Allow me to share with you my learning as a Grabcar peer (operator).

My First Encounter with TNVS

My first encounter with TNVS was with Uber when I became its passenger. The first thing that comes to my mind when I first used Uber is that it is very convenient but it was very expensive too! The cost of the ride from Mandaluyong to Makati was around 500 Pesos. Despite the cost, I still felt that it was worth it because it is really very convenient. I didn’t need to wait too long to get a ride. I’ve been trying to hail a taxi but they kept refusing to give me a ride. It was then that I realized that TNVS is a good business venture.

Buying a car

The first car that I bought for TNVS business was a brand new Mitsubishi Mirage G4 2017. There are 4 reasons why I chose this car and these are:

  1. It is fuel-efficient
  2. It has low monthly amortization (12,987 Pesos per month)
  3. It is affordable to repair
  4. The replacement parts are easier to find

Fuel efficiency is very important in this kind of business. As we all know, the price of gasoline in the Philippines is very expensive and it continues to go up every year. In order to increase the income of your driver, your car must be fuel-efficient. If your driver will not earn, then your driver might quit if he doesn’t find driving profitable.

Amortization Cost is your biggest expense every month. Buying a car that have higher amortization cost doesn’t make sense to me. I don’t intend to use the car personally so I didn’t consider buying a fancier car. The lower the amortization cost, the easier it is to profit from the business. PERIOD.

Repair and maintenance cost is also a regular expense that you have to shoulder every month. I make sure I regularly change the oil to keep the engine running in good condition. I also make sure that the mechanic checks all possible damages so that we can repair it immediately. Mitsubishi auto parts are cheaper that is why my repairs and maintenance cost is lower compared to other TNVS operators who are using another brand of cars (except for Toyota of course).

Replacement parts for Mitsubishi Mirage are easier to find too! Since the car will be used almost every day, wear and tear of the auto parts are inevitable. I need to be sure that I can easily find the replacement parts.

Grabcar Operating Cost

LOOK! There are many things that you need to prepare for so make sure you handle your finances effectively. When I was just starting, I used all the money that I earned and didn’t save much for emergencies. I almost lost the car when it had to be repaired due to an accident and I don’t have many funds to pay for the amortization. LESSON LEARNED. Avoid this mistake if I were you. There are also other things that you need to prepare for. Below is a list of my expenses and my operating cost for Grabcar:

  1. Amortization Cost: 13,000 Pesos per month
  2. Maintenance Cost: 2000 to 5000 Pesos per month (depends if I need to repair something)
  3. Comprehensive Insurance Cost for TNVS: 1000 Pesos per month (for 12 months)

My total monthly operating cost is from 17,000 to 20,000 Pesos per month excluding expenses for car registration with LTO and LTFRB franchise.

Grabcar Operator’s Income

For an operator collecting 1,000 Pesos per day, his gross monthly income will reach 26,000 Pesos. We assume that the operator is not collecting boundaries during coding days of the car. With a monthly expense of 17,000 to 20,000 Pesos, the net profit would be 6,000 to 9,000 Pesos. In most cases, this income is not enough for sustaining the whole family but this is good enough to cover some regular expenses like electricity, water or maybe groceries.

Gross IncomeTotal ExpensesNet Profit
26,000 Pesos17,000 to 20,000 Pesos6,000 to 9,000 Pesos

Personally, I don’t earn that much but I am happy with what I am getting. If the operational cost is high, your net profit will be low as well. If you have 3 cars, I can say that the earnings are decent enough to support some of your expenses. Having 3 cars is like having an apartment that earns 18,000 Pesos to 27,000 Pesos per month.

Your Grab Driver

Your Grab car driver is the key ingredient to the success of your business. Before you allow him to drive for Grab, secure valid government ID, proof of residency and NBI clearance for security measures. You are paying hard-earned money for your car so it is just right to make sure that you entrust your car to someone you did a background check.

Next, let driver operate his own business. What is important to you is that you get paid and that he doesn’t use your car illegally. Allow him to provide other services using your car. He is doing this so that he can feed his family and also, to pay the regular boundary. If you don’t trust him at all with your car, then don’t let him drive in the first place.

To increase your success in the business, make sure that you compensate your driver well. In my business, I make sure that my driver earns more than what I earn. After all, he does all the hard work. I also included benefits that he can use in the future. For instance, after 5 years of his commitment to me, I will give him the car. This is called boundary hulog for Grab Driver. This benefit increases the likelihood that your driver will stay with you longer and it is both beneficial to you and your driver. Lastly, your driver is your business partner – always remember that!

Secrets to Success

  • VERY IMPORTANT: Take care of your driver. Your driver is the key to success of your business. Take care of him and he’ll take care of your business in return. Treat him fair and square at all times.
  • Install a GPS. Buying a car is a huge investment especially for ordinary people like me. Having a GPS installed increases your car’s security feature.
  • Buy an insurance that covers vehicles used for TNVS. Some insurance companies does not cover vehicles used for TNVS.

Have you decided to be a Grabcar Operator? Here is the list of requirements for GrabCar

Grab Application RequirementsTo become an operator for Grabcar or Grabpremium in the Philippines, an applicant must submit all the Grabcar requirements first. Along the with these requirements, your vehicle model should not be older than three (3) years. It is also worth noting that Grab does not accept vans and pick-ups for their ride hailing service. Here’s a list of all qualified Grabcar vehicles.

Grabcar Requirements for Operators

  • 2×2 Photo of applicant with a white background
  • 2 valid government-issued ID
  • Proof of citizenship (birth certificate or passport)
  • Tax Identification Number ID (TIN ID) or Income Tax Return (ITR)
  • Original Receipt/Certificate of Registration (OR/CR) or Sales Invoice and Delivery note of the Vehicle
  • PA (Provisional Authority), CPC (Certificate of Public Convenience), or LTFRB TNVS Application with stamped receiving copy and case number. Read this blog post for TNVS requirements
  • Comprehensive Insurance of the vehicle
  • Map of garage (use Google Maps)
  • Certificate of Conformity from the bank or from the financing company if the vehicle is currently under financing or encumbered

Additional requirements if the Operator is not the same as the registered vehicle owner

  • Notarized Special Power of Attorney (SPA) if the operator is not the registered owner of the vehicle
  • 2 valid government-issued ID of the registered owner of the vehicle (if the operator is not the same as registered vehicle owner is not the

Requirements for Grab Drivers

  • Clearance from the National Bureau of Investigation
  • Clearance from the Philippine National Police
  • Professional Driver’s license with official receipt

Application Process

To be considered valid for Grab application, all the required documents must valid within 21 days before they expire. Applications for Grab peer start with filling out an online form, which can be accessed in the Grab website. Once this is done the applicant will be sent an email informing him/her of the Peer Information Session (PIS) schedule.

Applicants must have a registered e-mail address and bring with them a printout of the confirmation e-mail to attend the invitation-only Peer Information Session. Without the printed invitation sent by email, peer applicants will not be allowed in the information sessions. Moreover, the applicant must be prepared to submit the requirements to the Grab office with a photocopy of all documents along with the original papers.

On the appointed day, the applicant, along with his/her email confirmation and required documents must be patient to await their turn in the queue. Upon verification of the requirements, the Grab staff will provide the peer applicant with a Peer checklist and GCash Form. If the peer and driver are different persons, the driver will receive a Grabcar Driver’s checklist. The driver would need to proceed to a booth for his/her photo to be taken for the Driver’s App.

Allowed Vehicles for GrabCar

  • BYD: E6, F0, F3, F5, L3, S6
  • Chery: Fullwin
  • Chevrolet: Captiva, Cruze, Optra, Sonic, Spark, Spin,
  • Ford: Ecosport, Focus, Fiesta
  • Geely: LC
  • Honda: Brio, City, Civic, Jazz, Mobilio
  • Hyundai: Accent, Elentra, Eon, Getz, I10, I20
  • Isuzu: Crosswind
  • Kia: Carenz, Carnival, Picanto, Rio, Soul, Forte, Optima
  • Mazda: Mazda 2, Mazada 3
  • Mitsubishi: Adventure, Lancer, Mirage, ASX, Fuzion
  • Nissan: Almera, Cefiro, Grand Livina, Sentra
  • Peugeot: 3008, 301
  • Renault Samsung: SM3
  • Ssangyong: Stavic
  • Subaru: Impreza
  • Suzuki: APV, Alto, Celerio, Ertiga, Kizashi, Swift, Swift Dzire, SX4, Kizashi
  • Tata: Manza, Indica, Indigo, Vista
  • Toyota: Altis, Avanza, Innova, Vios, Wigo, Yaris, BB, Corolla
  • Volkswagen: Polo, Jetta

Allowed Vehicles for GrabPremium

  • BMW: 3-series
  • BYD: L3, S6
  • Chevrolet: Orlando, Suburban, Trailblazer
  • Chrysler: Town and Country
  • Ford: Escape, Everest, Expedition, Explorer
  • Great Wall: Haval H3

Got questions? Please feel free to leave a comment below. We’ll try to answer as quick as we can. Thank you!