In the first quarter of this year, Bangko Sentral ng Pilipinas (BSP) reported that auto loans increased by 26% to P244.61 billion from P194.37 billion the previous year.
The demand for car loans in the Philippines will continue to increase as more Pinoy car buyers see financing as a better option when purchasing a new car, Carmudi said.
In its recent study, the company reported on the growth of car financing in the Philippines as well as other emerging markets. The white paper entitled “Car Financing in the Philippines” provides a look into the current and future state of car financing and how consumer attitudes toward credit have changed in recent years.
As the demand for auto loans continues to grow, local lenders are coming up with various strategies to entice buyers such as lowering interest rates and offering attractive products and freebies to raise their share in the industry and to give them a competitive edge, the startup firm said.
Kris Lim, the firm’s marketing head, said that interest rates for car loans generally depend on the bank but usually range from 8.93% to 12.60% per year.
Lim said that aside from banks, car dealers also offer in-house car financing.
Subir Lohani, Managing Director of Carmudi Philippines, said, “Car financing has always been an option that consumers in the Philippines look at when buying a car.”
“And as more banks and financial institutions offer attractive loan programs and require low down payments, we expect auto purchases through financing will continue to flourish in the country,” the top executive added.
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About Carmudi
Carmudi was founded in 2013 and is currently available in Bangladesh, Cameroon, Congo, Ghana, Indonesia, Ivory Coast, Mexico, Myanmar, Nigeria, Pakistan, Philippines, Qatar, Rwanda, Saudi Arabia, Senegal, Sri Lanka, Tanzania, United Arab Emirates, Vietnam, and Zambia. The vehicle marketplace offers buyers, sellers and car dealers the ideal platform to find cars, motorcycles and commercial vehicles online.
For Media Inquiries, kindly contact:
Kris C. Lim
Head – PR and Marketing
Carmudi Philippines
Unit 2901, Antel Global Tower, Julia Vargas Street,
Ortigas Center, Mandaluyong City
Mobile: 0917-4140607
Email: kris@carmudi.com.ph
Skype ID: kris
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This is a guest post.