Wednesday, July 29, 2020
BPI Savings Bank Sees Consumers Shift to Smaller, Less Expensive Cars
Given the lack of public transportation during the quarantine period, and the risks involved in riding a public vehicle, car ownership has become even more important for Filipinos. Given the current economic uncertainties, however, buyers have become more cost-conscious, preferring smaller, less expensive models.
To address buyers’ concerns, the BPI Family Savings Bank (BFSB)—a wholly-owned subsidiary of the Bank of the Philippine Islands (BPI)—continues to offer Filipinos affordable auto loans that can help achieve their goal of buying their own car or motorcycle without eating too much into their cash flow.
“Sales are expected to continue growing for both cars and motorcycles,” said BFSB Head of Retail Loans Dennis Fronda. “For cars, however, we’ve seen a sudden shift in preference towards smaller, less-expensive models since the ECQ started. Customers are still being wary of their cash flow by opting for the bare minimum to meet their needs for a safer mode of transportation.”
“Our aspiration has always been to help Filipino families achieve their dream of owning a car. With the current issues surrounding public transportation, we’ve only become more determined to help take them there. For people doing essential work, a car suddenly became an essential thing to let them get to their workplace safely and comfortably,” he said, adding that the Bank continued servicing auto loan applications for those who needed it even amid the enhanced community quarantine.
This change in consumer behavior is aligned with BFSB’s prudent lending stance which factors in the stability of their borrowers’ income streams. “We continue to be one of the more prudent banks in lending, and because of that we espouse responsible banking and responsible borrowing,” said Fronda.
To help customers assess their readiness for the responsibilities of car ownership, BFSB’s website provides self-assessment tools such as a loan calculator which gives potential buyers an idea of how much they can expect their amortizations to cost. The website also allows customers to directly submit their loan application online.
BPI Family is also helping boost the automotive industry through continuous payment of loan proceeds to car dealers, helping them take in more inventories and roll their capital.
“Dealers are adopting to the new normal too. With our various discussion with manufacturers, there shouldn't be a problem with supply as the launch of new models will definitely be aligned with what the market demands,” Fronda added.