DTB inks vehicle financing deal with Nissan dealer

 Nissan Kenya showroom along Uhuru Highway. FILE PHOTO | NMG

By BONFACE OTIENO
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Diamond Trust Bank  (DTB) has partnered with motor dealer Crown Motor Group Kenya to offer finance to customers buying Nissan brands from the auto dealer.

DTB’s general manager in charge of Asset Finance Kennedy Nyakomitta said the deal will see customers access up to 100 per cent funding in the payment scheme that will require buyers to repay the loan in five years.

“Despite providing a huge share of global employment, Small Medium Enterprises still face major challenges when it comes to raising capital for their businesses and accessing funds to grow their business potential, said Mr Nyakomitta.

“The partnership with Crown Motors demonstrates our commitment to walking the journey with our customers as we provide them with customized, flexible, and integrated banking solutions. SMEs will not have to outlay any cash to get these vehicles, they simply need approval from DTB after which they can collect the desired vehicle from Crown Motors” he added

The lender will charge customers 13 per cent interest on the loans with a turnaround time expected not to exceed 48 hours.

Customers will, however, not enjoy a repayment holiday in the deal that only covers vehicles currently in stre by the auto dealer.

The deal is expected to boost sales for the auto-dealer which were hit by Covid-19 related disruptions.

Sales of new motor vehicles surged 35 percent in the first half of the year as the economy continued to recover from the shocks of the Covid-19 pandemic.

Formal dealers such as Simba Corporation, Toyota Kenya and Isuzu East Africa moved a total of 6,246 units in the review period compared to 4,628 units the year before when the coronavirus disruption was most severe, data from Kenya Motor Industry Association (KMI) shows.

The first coronavirus case was recorded in the country in mid-March last year, killing hundreds and setting off pandemic containment measures that dealt the economy a major blow.

More than a million people lost their jobs while most of the remaining workers took pay cuts, with sectors such as tourism and real estate suffering the most.

As uncertainty mounted, sales of new vehicles fell 26.4 percent in the half-year ended June 2020 from 6,294 a year earlier.