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

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.