Co-op Bank in new financing deal for used car importers

Gideon Muriuki, the Co-op Bank chief executive. The Co-operative Bank has entered into a joint venture with World Navi Company, a leading Japanese exporter of used cars to Africa and Europe, for financing importers. FILE PHOTO | NMG 

By COLLINS OMULO
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Summary

• The Co-operative Bank
• has entered into a joint venture with World Navi Company, a leading Japanese exporter of used cars to Africa and Europe, for financing importers.
• The partnership will see buyers of cars costing Sh500,000 or more get vehicles from key markets like Japan, UK and Thailand at “affordable prices” as well as secure up to 80 percent financing for the purchase.
• This in addition to three-months warranty on the car engine and transmission, accident-free and genuine mileage certificates and zero risk of stolen parts or non-performance.

The Co-operative Bank has entered into a joint venture with World Navi Company, a leading Japanese exporter of used cars to Africa and Europe, for financing importers.

The partnership will see buyers of cars costing Sh500,000 or more get vehicles from key markets like Japan, UK and Thailand at “affordable prices” as well as secure up to 80 percent financing for the purchase.

This in addition to three-months warranty on the car engine and transmission, accident-free and genuine mileage certificates and zero risk of stolen parts or non-performance.

The new business line comes months after the bank’s joint leasing with a South African firm to supply the government with new cars.

“Majority of Kenyans depend on the second-hand vehicle market to own a car but one of the prevailing issues plaguing the public is the anxiety of finding a reliable agent who will ensure they get what they are paying for. With this service, the bank will also finance approved motor vehicle dealers to enable them to import vehicles on behalf of their customers,” said the head of business banking at Co-operative Bank Moses Gitau.

He said the service is open to both Co-op Bank customers and non-customers wishing to import vehicles using either own funds or looking to be financed by the bank.

But customers buying the vehicles using their own money need to identify the car on the World Navi’s website, place the order and receive a general pro-forma invoice before depositing the whole amount into an internal account with the bank. It will be held here until the car is shipped in and delivered to them.

The same process will apply for those seeking financing from the bank to buy the vehicles. However, they will start the loan application process on receipt of the general pro-forma invoice.

“Once approved, the customer will receive an indicative offer letter and will then proceed to deposit their own contribution (at least 20 percent) into an internal account and the bank will cover the rest, enabling the import agent to ship and deliver the vehicle,” Mr Gitau said.