Buying a car: Investment or liability?

CEBU, Philippines - Buying a vehicle these days has become the second biggest investment for most people, coming close second to buying a home.

Normally perceived as a liability, Auto Global, Inc. vice president Brian L. Chua says otherwise stating that “I consider [buying] a car a good investment. It is an investment that takes you from one place to another. You spend also a lot of time inside the car.”

Given this, Chua is bullish that despite the very aggressive auto industry in the country, the “Mini” car brand has the potential to grow in the Philippine market.

The Mini brand that originated in Britain is targeting the “premium” market segment in Cebu specifically the young professionals, Chua noted, comparing the “iconic” brand similar to that of the popular Mr. Bean’s Mini Copper auto.

“You know, Cebuanos are known to be very sophisticated buyers and also one of the well-travelled in the Philippines,” he told The FREEMAN in an interview.

Although conventional vehicles seem to be the usual preference of car users, Chua has no doubt that the market for compact cars (small family cars) will eventually grow in the Visayas and Mindanao. This as the demand for transportation continues to rise and the “trendy” generation grows.

With the increasing local and foreign car makers joining the automotive industry, the Auto Global official believed that maintaining a “good brand” and consistently producing “unique” car models are strategies to keep up with customer trends.

“It’s just that if you want to stay away from the competition, be unique in terms of branding,” he said.

Mini Philippines, a car dealership company, has recently expanded its network in Cebu. Mini Cebu is an associate of Autocentral Group which operates Suzuki, Ford, Subaru, JMC dealerships in the VisMin area.

Having been in the industry for almost nine years, Chua and Mini Cebu President Kris Lyndon C. Go, shared a “success formula” that would help a business survive. The two said that a good management team and service help maintain and grow the operation.

Both said the fact that a number of professionals are now considering to buy a car, auto dealership business now has the edge for growth.  (FREEMAN)