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BPI Family cuts rates, waives fees on auto loans

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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’s 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’s 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’s 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’s value). The amount to be loaned must range between P500,000 and P5 million, and the term should extend to five years.

The bank’s head for retail lending, Joaquin Mari B. Abola, clarified the promo is “not related to the slump in car sales” as the company is “actually expecting a surge in demand” largely due to “more income coming into the pockets of consumers.”

The executive noted the cut in rates for the auto and house loans is also BFSB’s 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.

“Car ownership is a five-year decision,” Mr. Abola said, referring to the average period for installment payments. “House ownership is a 25-year decision. So why let temporary issues stop [one] from making the purchase?” — BMA