AS car companies anticipate deliveries to pick up pace in the second half of the year — domestic vehicle sales have dropped 9.3% in 2018鈥檚 first four months as consumers appeared to have made their purchases earlier in an effort to beat the higher taxes imposed on automobiles beginning in January — a leading bank could play a role in the segment鈥檚 recovery as it started to offer more accessible financing packages for vehicle (and house) purchases.
BPI Family Savings Bank (BFSB) on June 6 announced lower rates and other discounts for loans it is offering buyers of new cars. Similar schemes are also available to those intending to buy residences, or improve existing ones.
In whichever case, loan applications must be made between June 1 and Oct. 31, and booked before Dec. 1.
BFSB鈥檚 auto loans now include a one-year comprehensive insurance coverage and chattel mortgage fees for free, and a P10,000 discount on the down payment (which should at least be 20% of the vehicle鈥檚 value). The amount to be loaned must range between P500,000 and P5 million, and the term should extend to five years.
The bank鈥檚 head for retail lending, Joaquin Mari B. Abola, clarified the promo is 鈥渘ot related to the slump in car sales鈥 as the company is 鈥渁ctually expecting a surge in demand鈥 largely due to 鈥渕ore income coming into the pockets of consumers.鈥
The executive noted the cut in rates for the auto and house loans is also BFSB鈥檚 way of helping consumers negate in part the effects of inflation, adding that now is as good a time as any for them to avail of loans.
鈥淐ar ownership is a five-year decision,鈥 Mr. Abola said, referring to the average period for installment payments. 鈥淗ouse ownership is a 25-year decision. So why let temporary issues stop [one] from making the purchase?鈥 — BMA
