Strict autoloan requirements pull down dealers’ revenues

CEBU, Philippines —  Aside from weak interest from the market to buy new cars during pandemic, banks’ meticulous requirements for auto loans likewise pulled dealers’ revenue down.

In a report, the Philippine Automotive Dealers Association (PADA) stated that auto dealers in the country are having difficulties to recover from long months of lockdown and quarantine restrictions, as financial institutions seem not opening attractive loan packages for car buyers amid the health crisis.

PADA, through its president Willy Tee Ten, appealed to the government to urge banks to loosen their requirements to offer auto loans to Filipinos who are planning to buy cars, in order to activate the market.

He reported some dealers have decided not to re-open yet, but those that reopened have difficulties generating sales.

Tee Ten claimed that banks remain strict in approving auto loans thus discouraging consumers to buy at this time.

He said with this scenario some dealers may not be able to continue operating.

The auto dealership industry estimated to directly employs around 35,000 workers nationwide.

In May this year, Ford Philippines launched its latest Ford Everest Sport line up, despite fragile market condition under the Coronavirus pandemic era.

PK Umashankar, managing director, Ford Philippines said the company has tweaked its marketing approach under the new normal scenario, by increasing its market engagements digitally.

The American premium car maker is also implementing easy acquisition packages for buyers, in partnership with various banking institutions considering the brunt of the pandemic to people’s wallets.

Ford Philippines is offering “buy now, pay later” option to address the current circumstance.