Bank offers more perks to ease TRAIN impact

CEBU, Philippines — Bracing for the anticipated effects of the Tax Reform for Acceleration and Inclusion (TRAIN) on car sales, the BPI Family Savings Bank (BFSB) ushers in more perks to customers in this year’s Auto Madness.

BFSB yesterday opened the Cebu leg of Auto Madness at the Ayala Center Cebu Activity Center, bannering its lowest interest rate offer, free insurance incentive, gas card, among others.

BPI Family Auto Loan division head Dennis Fronda explained in a press conference following the official opening of the three-day event, that the TRAIN law resulted to a slight increase in the prices of brand new cars (except for pick-up and trucks). He however said that the law’s effect could be short-lived as the increase will be offset by the expanding take home pay of most Filipinos.

The implementation of TRAIN, which started in January this year, affected the interest of some in buying new cars, as prices have reflected adjustments due to more expensive tax duties.

Since this effect is just seen as temporary and will settle down probably by May or June, Fronda said car demand is still on its active ground specifically in the Philippines, where people's purchasing power is constantly on the upswing.

"While prices of some cars have gone up, take home pay of an employee has gone up as well. With affordable auto loan packages, the client still has more than enough to cover the monthly amortization and other car expenses," added Fronda.

Fronda reasoned further that despite the TRAIN implementation, loan packages have remained affordable.

Aside from rare perks and incentives, this year's BPI Auto Madness also offers more choices of car brands and models, said BFSB Visayas area business director Rey Eleccion.

The event, which opened yesterday and will culminate on the 18th, brings together 23 car brands in one venue, such as BMW, Chevrolet, Chrysler, Ford, Foton, Honda, Hyundai, Isuzu, Jee, JMC, Kia, Mazda, Mercedez Benz, Mitsubishi, Nissan, Peugeot, Ssangying, Subatu, Suzhki, Tata, Toyota and Volkswagen.