Higher take-home pay boosts consumers’ capacity to buy cars, homes

BACOLOD CITY — Consumers now have a better capacity to purchase automobiles and homes with the increase in their take-home pay as a result of the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, bank sales executives said.

A team of the BPI Family Savings Bank in the Visayas, who came to the city on Friday, is banking on this development to lure Bacoleños to buy cars and real estate as they bring the Loans Madness event to Robinsons Place Bacolod from March 23 to 25.

Wilbert Yu, assistant vice president and sales channel head of Visayas Auto Loans, said that with an additional net pay, owning a car, which has become more of a need than a want, has become “very affordable” for qualified buyers.

The new tax reform actually allows better capacity for consumers to avail of the special amortization packages, he added.

“Cars are mainly used for convenience and safety. Some families use it to send their children to school, or go to work without the hassle of multiple jeepney rides when commuting. There is also a growing demand for vans for rent because of the tourism initiatives of the government,” Yu said.

He said during the Loans Madness in Bacolod last year, they exceeded their target, and hope to duplicate the success this year. He did not cite figures though.

Stephen Maglasang, senior manager and sales channel head for Visayas Housing Loans, said there is a big confidence in Bacolod as shown in the presence of major property developers in the city.

The growth in the real estate industry is evident with the increase of investments in Bacolod, he added.

Maglasang said that with the bank’s affordable packages, customers can still cover monthly amortization.

Rey Eleccion, area business director for Visayas, said the TRAIN Law has increased the purchasing power of the workforce and the businesses.

“Because of the lower tax brackets, with the higher purchasing power, they can now avail of auto and housing loans especially now that the interest rates are at the lowest,” he added.

Eleccion said BPI Family Savings Bank considers Bacolod as an important growth area based on the expansion of car dealers and the presence of major developers.

He said that there is an increase in demand for cars and homes here as a result of the growing population, high-paying jobs, and good schools producing quality graduates.(PNA)

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