BPI offers financing plan for first-time car buyers


BPI Family Bank, the country’s biggest thrift bank, seeks to broaden its consumer lending business by unveiling an affordable auto financing plan for first-time car buyers, targeting young professionals in their 30s or late 20s.

The “First Car Program” program will be launched during the Manila International Auto Show (MIAS) 2013 to be held on April 4-7 at the World Trade Center, bank officials said in a recent briefing.

“We are very excited to introduce our First Car Plan at the 2013 MIAS. We want to effectively respond to the needs that we see in the market and encourage our young professionals to bring home their dream cars at this time when the country is experiencing a stellar economic performance,” said BPI Family Bank president Teodoro Limcaoco.

David Sarmiento Jr., BPI Family Bank senior vice president and auto loans division head, said under the program, the bank would offer lower rates and free insurance with Acts of Nature coverage.  The entry level or the minimum loan needed to qualify for the insurance was also lowered to P400,000 from the previous threshold of P600,000.

He said the interest rate under the first car program would be about 25 basis points lower than the usual rate of between 10 and 14 percent per year. Doris C. Dumlao

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  • Lauro

    9.75% interest is still very stiff!!!! High interest reflects a negative sentiment by the bank on the future … it is, therefore, not time to buy a car which the target clientele can barely afford!!!!

  • Andres Bonifacio

    Kayo mga mahirap at reklamador, may BUS nalang kayo…hindi bagay ang bagong katse sa inyo! LOL!

  • CmdrAdobo

    Ang masabi ko lang makabayan. If you cant afford, just dont buy.

  • tlb6432

    wow 10% to 14% interest a year.. that’s too high a profit for BPI..

    • Guest

      I was about to say the same thing! Usury indeed! Halimaw sa interest! And the the promotional offer is 25 bps discount lang – a quarter of a percentage point! hehe

    • tyurl

      Lupet talaga ng mga bangko sa pinas pumatong ng interest!

    • lucidlynx

      that’s not high for a motor vehicle. ang depreciation rate ng kotse ay mas malaki.

      ang tanong ko: paano malalaman kung first car buyer ka? kung walang naka-rehistro sa pangalan mo ngayon o kahit noon? eh hindi naman maayos ang records ng LTO.

      • thg

        No. 10-14% range is very high. It is just that, in the Phils lending rate has customarily been quite expensive. So this is somewhat within market’s tolerance band.

        Domestically, here are the current prevailing debt market rates: 91-day T-bill rate is currently 0.08%; 364-day T-bill is 0.8%; 90-day secondary market reference rate is 3.8% while 364-day secondary market reference rate is 4.8%. Average lending rate is 6.21%

        Sources: BSP and PDeX

        In Asia, RP is also in the upper cluster in terms of lending rates:

        Country 2011

        Brunei Darussalam 5.5
        China 6.6
        India 10.2
        Indonesia 12.4
        Japan 1.5
        Korea, Rep. 5.8
        Malaysia 4.9
        New Zealand 6.1
        Philippines 6.7
        Singapore 5.4
        Thailand 6.9
        United States 3.3

        Source: World Bank

        And I agree with Guest (whoever s/he is) – that 25 bps discount is a joke. That means that for every PhP 100,000 loan, the discount will only be PhP 250 per year.

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