According to startup firm Carmudi, car loans in the country will continue to grow at a double-digit rate with 25-percent increase in the first quarter of 2015.
In a recent Whitepaper event, the company report the growth of car financing in the Philippines as well as other emerging markets.
The survey provides an outlook into current and future state of flourishing car financing and how consumer attitudes towards credit have transformed in recent years.
According to Carmudi, “The car demand in the Philippines continues to grow as more sellers offer attractive rates coupled with very low downpayment from financial institutions.”
In 2010, car loans reaches to P436 billion pesos with more attractive products and low interest are being offered by leading banks.
However, global auto finance witnessed the decline in 2012 due to earthquake and tsunami in Japan and flooding in Thailand, resulting in supply shortages from most Japanese manufacturers.
In 2013, local auto sales gained its full recovery when the country received its first-ever investment credit ratings along with steady GDP consumer auto financing sustained a 16-percent growth.
The online portal also revealed that in the first quarter of 2015, local auto industry set another milestone with a record-breaking of 21-percent growth.
Passenger car sales dramatically increased by 30-percent due to new models launched by manufacturers.
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 data shows that the demand for auto loans in the country continues to increase.
Meanwhile, auto loans in Indonesia forecast to reach between 13 to 15-percent due to rising foreign direct investment, flourishing consumer spending, and improved credit ratings.
In Pakistan, auto loans increased by 20-percent due to amendments in regulation for car financing which enabled banks to finance cars up to 9 years old.