- 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.
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 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.
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