More Filipinos can afford brand-new cars, bank exec says

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DAVAO CITY—More Filipinos are able to buy brand-new cars these days as shown in the sales trends reported by dealers across the country, a bank executive said.

Felipe Carlos, vice president and dealer network head of the BPI Family Savings Bank, told reporters here on Thursday that this was indicative of the country’s improving economic condition.

Carlos said last year, the number of cars sold by dealers across the country totaled 180,000, up by 40,000 units from the yearly average of 140,000 from 2006 to 2011.

“The growth of the auto industry was due to the improving economy, wherein more people are now able to buy cars,” he said.

Carlos said BPI Savings Bank was optimistic that more cars would be bought this year as the economy continues to be rosy.

The government has reported that the economy continued on the uptrend for the first six months of the year.

In a report, National Statistical Coordination Board chief Jose Ramon Albert said the domestic economy posted growths of nearly 8 percent for each quarter.

“The resilient services sector, which grew by 7.4 percent, remained the main driver of the country’s growth supported by the 10.3 percent and 17.4 percent growth of the manufacturing and construction (sectors), respectively boosting the industry sector to grow by 10.3 percent,” Albert said.

He also confirmed that consumer spending has increased.

Carlos said the continued growth of the economy made BPI Savings Bank optimistic that at least 200,000 new cars will be sold this year.

“The steady growth has stirred confidence in BPI Family Savings Bank that we could gain success in our ongoing BPI Family Auto Loan,” he said.

Carlos said the bank’s optimism hinged on the fact that P50 million in car loans were being released each month. BPI Saving, he said, receives an average 50 to 70 car loan applications every month.

Carlos said in anticipation of more people buying cars, BPI Savings Bank has set aside P35-billion for financing car deals this year, of which P900 million was for the Davao region alone.

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  • Zim

    200,000 new cars on the road. how about the roads? are there any new expansion of roads this year?

  • Natx Bacalzo

    in metro cebu, one only need to notice new road hazards (aka new drivers) with new cars on the streets!

  • http://thisisoldschooladvertising.blogspot.com/ Paul Rudeboy

    I don’t get this. I’ve been trying out for a car loan for three years now and every single time I get rejected. I’m pretty sure my salary, minus my cost of living and other payables, can already purchase a car. Is it because I live in an apartment? I ended up buying a second hand car.

    • Antonio

      You did a smart move buying a second hand car, i can afford a new one (cash) but I go for a second hand under 10,000km which save me a lot of money. Don’t ever think that a car is an asset, a car lose its value every single day and you can find good deals for less money.

      • http://thisisoldschooladvertising.blogspot.com/ Paul Rudeboy

        Thanks, Antonio. Although, I’m not really happy with the purchase. Car’s not in tip-top shape. Had to sell it after seven months.

      • WeAry_Bat

        Hint: In general, try to buy company cars as soon as the employee sells them. Ask friends or acquaintances of companies which have sales representatives.

        It may be 2nd hand when it reaches you, but they are mostly in good condition with the PMS followed. Most of the time.

        With private car owners, I feel they sometimes do not follow PMS, skimp in the materials and skip some processes.

      • http://thisisoldschooladvertising.blogspot.com/ Paul Rudeboy

        Thanks, this is a good tip, WeAry. From medreps, maybe?

        Got burned with my first purchase. Dang!

      • WeAry_Bat

        You’re welcome. From medreps, salesreps, a few managers. Above the level are the luxury, SUVs and 4WDs which will cost more in PMS. Every year there is a limited sale as cars reach 5 years. Don’t fret, you got experience and will be much more wiser for it.

  • Pangasugan

    Of course, more Filipinos are getting richer while most are getting poorer dahil anak ng anak at wala namang mga trabaho. Dito sa Pilipinas pag gagamitin mo lang ang utak at kayod ka ng kayod, syempre aangat ka – kahit corrupt pa ang gobyerno. Wala naman talagang kinalaman ang gobyerno sa magiging income natin.

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