Car loans rise as industry shows sign of improvement

Buy, baby, buy!
Sep 1, 2009
Loans extended by banks to consumers for car purchases grew in the second quarter as more cars rolled off the showrooms during the period.

Bangko Sentral ng Pilipinas data showed that car loans as of end-June stood at P86.2 billion, 5.5 percent higher than the total loans as of end-March.

Car loans as of end-June 2009 was also nine percent higher than the loans recorded as of end-June 2008.

The central bank said "loan quality improved" as the ratio of unsettled car loans against the total auto loan for the period was down to 5.1 percent from 5.2 percent in the first quarter.

Data from the Chamber of Automotive Manufacturers in the Philippines, Inc. (CAMPI) showed that the car industry sold 31,347 units from April to June, 9.74 percent more than that sold from January to March.

The local automotive industry sold 59,910 units in the first half of the year, 2.8 percent lower than the sales made in the same period last year.

The industry, however, has started to reduce the contraction of sales with more products introduced in the market since July.

CAMPI expects the industry to sell at least 125,000 units of vehicles this year.
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