BPI Auto Madness explodes this September

The auto industry’s much-awaited car sale from BPI Family Auto Loan is back this September, promising more offers and venues than before.

Touted as the biggest auto loan event of its kind, buyers can also log online via bpiautomadness.com from Sept. 1 to Oct. 15, or visit the eight shopping malls and eight BPI branch venues in major cities across the country.

The one-and-a-half-month event is also one of the longest-running campaigns the bank has made where buyers can shop for the best loan package with BPI’s low loan rates, free comprehensive insurance and over 500 car models offered during the BPI Auto Madness event.

“With the successful turnout of our previous BPI Auto Madness events, we are committed to continuously come up with better offers to make car ownership more affordable and very convenient to every Filipino family. We want to make the best happen for Filipinos planning to buy their brand-new car, may they be here or abroad,” said Pepe Carlos, VP and head of BPI Family Auto Loan Division.

Since car shopping is now a family affair, the whole family can have an enjoyable experience shopping for a new car by visiting the BPI Auto Madness events happening in strategic locations around the country (Ayala Center in Cebu City from Sept. 3 to 6; Robinsons Place in Bacolod from Sept. 10 to 13;  Robinsons Place in Ilocos, Abreeza Mall in Davao, CSI Mall in La Union and Pacific Mall in Cabanatuan City from Sept. 17 to 20; Centrio Mall in Cagayan de Oro City and Robinsons Place in Dumaguete from Oct. 1 to 4).

Furthermore, BPI Family Auto Loan also holds the BPI Auto Madness in select branches to make the offers more available nationwide.

Clients visit BPI Tacloban City and BPI Tagbilaran City from Sept. 1 to 4, BPI Magsaysay-Naga City from Sept. 1 to 11, BPI Santiago-Isabela City from Sept. 16 to 18, BPI Vigan from Sept. 21 to 25, BPI Plaridel-Roxas City on Sept. 24 and 25, BPI Kuliat-Angeles City from Oct. 5 to 14, BPI Tarlac Highway-Tarlac City from Oct. 7 to 14; and BPI Candon City from Oct. 12 to 15.

Buoyant consumer lending

According to a report earlier this year by Euromonitor International, the consumer lending industry remained upbeat last year, surpassing its 2013 growth rate as it benefited from a vibrant economic performance, an influx of OFW remittances, and the expansion of BPO (business process outsourcing) increased the market’s appetite for consumer loans.

As more middle-income Filipinos began investing in their first car, there was also an increased availability of car models like subcompacts and mini-SUVs that were specifically geared toward first-time buyers.

Quoting the Euromonitor report, mortgages/housing and auto lending recorded the fastest growth among all categories. The growing demand for cars was also fueled by affordable rates and flexible payment options from financial institutions coupled with very low down payment.

Being a responsible borrower

While there are several considerations in making sure you avail of the right auto loan and successfully purchase your dream car, you need to make sure you choose the right car for you, and you also need to find the right balance between your equity (down payment) and amount to be financed.

It is prudent to first look into how you will finance your car purchase before actually going out to shop for a new car. By doing some research, you would be able to come up with a package that will be suitable for your lifestyle while properly managing your cash flow.

When shopping for the right auto loan package, make sure to check the terms of your auto loan to determine the initial down payment, and how much the overall auto loan will cost by the time you finish paying off the loan.

Choosing a more expensive car because of the low down payment required increases the total cost of your auto loan, and usually has an “upside-down” effect, meaning you owe more on the vehicle than it’s worth for years to come.

It does not mean that a low down payment is the answer to choosing a car that is beyond your paying capacity.  You still need to compute the monthly amortization and how much total you will spend for it. Make sure you have enough buffer income for emergencies on top of paying off your usual expenses.

Some banks have very user friendly websites that can offer loan calculators that can give you various options real-time like BPI’s auto loan website. You can figure out exactly what your loans payments will be like and compute the various options by selecting the various down payment options available.

Aside from the loan payments and initial down payments, you have to check what other fees you need to pay, like how much you have to shell out for insurance and the one-time chattel mortgage fee banks charge for obtaining a loan.

Make sure you have car insurance so in the event the vehicle is stolen or damaged, you are still covered. Remember, you are still responsible for paying off your loan even if you suffer a total loss in the event of a bad accident or if the car gets stolen.

Since loan payments are recurring each month, missing one payment will not only pile up but greatly hurt your credit standing. This could eventually lead to having your vehicle repossessed if you miss more payments.

Some banks like BPI will offer automatic payment transfers that are linked up to your bank accounts. While this is convenient, just make sure that you monitor your bank statements regularly.

Plan for rainy days to happen

Once the loan is approved and all the paperwork is done and the car has been released, it is important to note that the monthly payments should be diligently made to avoid complications and running behind amortization payments.

Managing one’s cash flow seems easier said than done, especially when your spending dynamics change over the course of time. These can mean having a growing family, inflation, additional household and even medical expenses, and the like.

Responsible loan applicants would know planning one’s expenses against income entails proper planning and personal financial and cash flow management.  In case you suffer from a financial setback like a loss of job or whatever reason that will keep you from continuing payments, make sure you contact your lender right away and try to work out a revised payment plan.

It is always good to be up-front about your financial situation rather than to hide it so you can have the chance to negotiate for a softer payment scheme until you get back on your feet.

Buyers who are out of the country can access 24/7 www.bpiautomadness.com to get more details about the promo. All the participating car brands and special car offers can be accessed anytime and anywhere through any Web-enabled smartphones, PC, tablets or laptop for truly convenient car shopping.

For more information on the most affordable and convenient way to own a car, simply log on to www.bpiautomadness.com.