Sales Growth in the Philippines May Hinder New-Vehicle Sales Satisfaction

Mohit Arora

Mohit Arora

Despite the positive news of strong first-half new-vehicle sales gains in the Philippines—one of Southeast Asia’s smaller automotive markets—overall satisfaction with the new-vehicle purchase experience has declined by nine points from 2012, to 846 (on a 1,000-point scale), according to the 2013 Philippines Sales Satisfaction Index (SSI) Study.

All factors measured in the study post lower index scores than in 2012 with the most notable dip being in the salesperson factor.

A few more key findings:

• A majority (76%) of new-vehicle buyers finance their purchase with a loan—up 5% from 2012.

• The percentage of new-vehicle buyers who say they are offered a loan by a dealership salesperson declines in 2013, to 79% from 90% in 2012.

• Among those buyers who use a dealer-arranged loan for their purchase, 69% select an independent financial provider of their own choice—up from 44% in 2012.

• Satisfaction scores among customers who select an independent financial provider are 17 points lower than among new-vehicle buyers who finance their purchase through the brand’s captive finance provider.

As credit availability in the Philippines has grown during the past few years, banks have been very aggressive in their auto loan offerings in the market. The convenience of applying online, a speedier approval process, and low interest rates attract would-be buyers to finance their new-vehicle purchase through a financial provider of their choice.

In this year’s overall sales satisfaction brand rankings, Ford ranks highest among the 10 brands included in the study with an overall score of 855. Ford performs particularly well in five of seven factors. With a score of 849, Nissan and Toyota tie for second rank position. Hyundai ranks third with a score of 847.Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore

 

Note: The 2013 Philippines SSI Study is based on responses from 1,573 new-vehicle owners who purchased their vehicle between August 2012 and April 2013.

 

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