When the global economic slowdown hit the local market, companies became more cautious about their prospects for the year. Everyone was expecting the worst, with a flat performance being satisfactory already.
BPI Family Savings Bank (BFSB) was one of the firms that approached the start of 2009 with uncertainties after it saw its performance dip slightly last year. But with the resilient economy, a smarter market and the first nationwide Auto Madness car fair in March, BPI Family Savings Bank was able to buck the gloomy trend. and even corner 21 percent of the auto loan market.
"We weren't happy that the sales figure from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) showed that the entire industry was down by 2-percent. We are happy, however, that BFSB has been showing a steady 10.2-pecent growth year-to-date as of July 2009. So to help the automotive business, we decided to stage a second Auto Madness event," said Alfonso Salcedo Jr., president of BPI Family Savings Bank.
Salcedo said the bank received 30- to 40-percent more auto loan applications than usual at the first Auto Madness. With roughly 60 percent of the loan applications being successfully processed, the bank's auto loan business was bumped up by 50 percent.
BPI Family Savings Bank senior vice president David Sarmiento said passenger cars were the most sought-after vehicle up for financing, followed sport utility vehicles.
"Buyers are holding on to their money more cautiously. They won't just spend their money on a whim. It's these buyers who are more eager to buy a new car now, especially when they know there are promos like the Auto Madness that can help them get their dream car for much less," Sarmiento said.
BPI Family Savings Bank's auto loan component makes up for a quarter of the bank's lending business. About 1,500 loan applications were approved in the first Auto Madness and the bank is hoping that the second staging of the event would be even more successful.
"With the recession already behind us, we're optimistic about how the second Auto Madness event would fare. I'd be very happy if we can top the first Auto Madness by 50 to 70-percent," Salcedo added.
The second nationwide Auto Madness is from September 10 to 13.