Summary
- Banks in the Philippines are offering financing packages for Tesla customers, but interest rates are extremely high for Model 3 and Model Y loans
- Tesla opened a flagship store in Taguig, Manila and orders for Model 3 and Model Y are now open in the Philippines
- UnionBank and RCBC are offering financing deals for Tesla customers in the Philippines with fast approval processes
- High interest rates for auto loans are common in the Philippines, making mainstream cars seem like premium vehicles
- Tesla Philippines could potentially revolutionize the mainstream electric vehicle market in the country by offering lower APRs for Model 3 and Model Y loans
Article
Several banks in the Philippines have begun promoting financing packages for Tesla customers in the country, which could attract more customers to the electric vehicle maker. However, the interest rates for Model 3 and Model Y loans in the Philippines are reported to be extremely high. Tesla recently opened its flagship store in Taguig, Manila, and has started accepting orders for the Model 3 and Model Y with deliveries expected in early 2025.
UnionBank and RCBC, two Philippine-based banks, are currently offering financing deals for Tesla customers. UnionBank has announced a faster approval process for customers looking to purchase Tesla vehicles through a bank loan. RCBC, on the other hand, introduced a fully digital auto loan process specifically designed for Tesla customers in the country. Despite these initiatives, the high interest rates on loans for Tesla vehicles may limit access to lower-tier customers.
While the efforts from UnionBank and RCBC may make Teslas more appealing to Filipino drivers, the high interest rates for Model 3 and Model Y loans could potentially make the vehicles only accessible to higher-tier customers. Tesla Philippines’ official website indicates that a 60-month loan with a 20% downpayment for a Model 3 or Model Y involves a significant add-on rate of 29%. High interest rates for auto loans are not uncommon in the Philippines, contributing to the perception of mainstream cars like the Toyota Camry and Corolla as premium vehicles.
It is hoped that Tesla Philippines will find a way to offer the Model 3 and Model Y with lower annual percentage rates (APR), which could lead to a mainstream electric vehicle revolution in the country. Lowering the interest rates on auto loans for Tesla vehicles could make electric cars more accessible to a wider range of customers in the Philippines. The country’s high interest rates for auto loans have been a barrier to entry for many consumers, making mainstream vehicles appear as luxury items. If Tesla can address this issue, it could significantly impact the adoption of electric vehicles in the Philippines.
In conclusion, the promotion of financing packages by UnionBank and RCBC for Tesla customers in the Philippines aims to make electric vehicles more accessible. However, the high interest rates for Model 3 and Model Y loans may still pose a challenge in making these vehicles attainable for all income levels. Lowering the interest rates on auto loans could potentially lead to a mainstream EV revolution in the Philippines and increase the adoption of electric vehicles in the country. Tesla Philippines may need to explore more competitive financing options to make their vehicles more accessible to a wider range of customers.
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