Nigeria is beginning to imbibe the global culture of making phased payment for vehicles that require large sums payments by prospective buyers.
During the week, Coscharis Motors Limited, in partnership with Stanbic IBTC Bank and Access Bank, concluded plans to launch a Vehicle Finance Scheme (promo), which would empower retail and fleet buyers to purchase their choice vehicles from any Coscharis Motors outlet nationwide and make payment by installments.
This is one of several efforts by the company to ease the ability of actual and prospective customers to purchase the existing brands under the Coscharis franchise.
The Group Managing Director of Coscharis, Josiah Samuel said: “The scheme will allow a repayment pattern spread over a period of four years with the option of a repayment percentage ranging from 10 – 30 per cent within the period.”
This scheme is unique in all ramifications in the nation’s auto market, as it is a first in terms of a multi-brand dealership that provides the market a bouquet of premium and economy auto brands partnering two of the leading banks in Nigeria towards financing a vehicle acquisition scheme.
In addition, the Group Managing Director stated that the need for the collaboration was informed by key factors such as many Corporate Nigerian workers, including – Small and Medium Scale Enterprises, want new vehicles from Coscharis but have inadequate financial capacity to effect outright payment; Most of the SMEs buy fairly used vehicles to run their businesses in order not to drain their working capital with the cost of new vehicles.
Also, the initiative is driven by the fact that Coscharis would require massive capital investment and extensive lead time to implement this initiative alone; and Access Bank and Stanbic IBTC are well positioned to perform this financing role and have solid history in this regard, he said.
He further added that among the four major objectives for the scheme, the priority was to provide a convenient and cost effective third party vehicle purchase finance to buy any of the Coscharis brands.
He said the scheme, which is a first by Coscharis, focused on delivering customers satisfaction given its very low interest rate, ease of accessibility to the banks, quick turnaround time for credit processing at the banks and availability of myriads auto brands and variants for customers to choose.
For the first instance, the collaboration will be operative for the duration of one year but renewable for a further one year term thereafter or agreed otherwise.
The Vehicle Finance Scheme is projected to generate a 2000 unit sale across all brands. However, the key attractions to customers are, in addition to the scheme, free vehicle registration, vehicle maintenance and service support, including vehicle recovery and emergency assistance.
The scheme will be available in all Coscharis networks, including all the partnering banks networks nationwide.