- With Autochek, customers can access digital financing solutions for brand new cars and trucks.
- Customers in East and West Africa can access a variety of financing options to purchase new cars and trucks.
- The Autochek auto loan services platform offers a variety of financing options from over 70 banks.
Autochek Africa has launched a dedicated brand new cars section on the Autochek website and mobile app.
With this new addition, customers can access digital financing solutions for brand new cars and trucks with repayment tenures of up to 60 months and the lowest interest rates in the market from regional partners such as Ecobank and NCBA with a 0 per cent equity loan product and Access Bank and Stanbic KE with unique financing solutions tailored specially for brand new vehicles with up to 90 per cent financing.
On the Autochek auto loan services platform, customers in East and West Africa can access a variety of financing options to purchase new cars and trucks from reputable manufacturers.
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So far, the platform has on-boarded a network of financing partners and over 30 vehicle brands from OEMs, including key regional players like Inchape (LandRover) and CMC (Ford and Eicher Trucks) in East Africa and Dana (Kia), Coscharis (BMW, Landrover), Globe (Mercedes Benz) , Elizade (Toyota) in West Africa.
As part of the investment by Mobility54, Autochek has also partnered with CFAO (Toyota, Suzuki, Mitsubishi) across Africa to facilitate auto financing for all CFAO brands.
Autochek Africa’s COO, Timi Tope Ologunoye said, “We are excited to partner with financiers and the automotive industry to provide this facility. It is in response to customer feedback to democratise purchase of brand-new cars through great and affordable financing options.”
Ologunoye added that the plan is complemented by Autochek Africa’s residual value analysis tool that can guide financial partners on the condition of the vehicle over time.
The Autochek auto loan services platform offers a variety of financing options from over 70 banks, with attractive terms that include a 15 per cent interest rate repayable for a period of between four and five years. The loans are also processed within 24 hours.
Timi added that financing for new cars is part of the company’s vision to unlock a new frontier of automotive fintech and cement its position as the most innovative auto loan platform in the region.
Whereas customers are assured of a good deal for brand new cars and attractive interest rates, distributors also get pre-approved prospective buyers.
According to research, the African automotive estimated market size is currently valued at USD90 billion in 2020, and this is expected to grow by 30 per cent largely driven by an increase in financing penetration at 10 per cent YoY. Due to the impact of Covid last year, there was a decline in overall sales of new cars due to restrictions on production but is fast regaining momentum as economic activities resume.
Read: Kenya leads Africa in locking out used motor vehicle imports
“We are on a mission to accelerate motorization across Africa by providing financing for brand new and used imports for our customers,” said Autochek’s Country Manager, Kenya, Bilhah Muriithi.
With shifting consumer demands, the Autochek platform is building on partnerships opportunities with automotive manufacturers and financiers, to innovatively provide a more agile, tech-led approach to deliver options.
The company plans to extend its brand-new automobile portfolio through multiple carrier partners within the Autochek platform by the end of the year, with the goal of launching over 300 new cars listed across all markets.
Autochek’s mobile app is currently available on Android and is due to be launched soon on iOS.
The offering comes at a time when Kenya is planning to stop importing second-hand vehicles by 2026. As a result, no automobiles older than ten years have been allowed into the country. Importing a car that is more than eight years old is now prohibited under the most recent set of rules.
The goal of this move is to boost the country’s automobile assembly industry. More than 85 per cent of all imported completely built vehicle units in Kenya are made up of second-hand automobiles, according to the Kenyan Treasury.
Dumping of second-hand machines and cars in Africa
Used machinery and automobiles are also being dumped in Africa as a way to save money.
The multi-billion-dollar used vehicle sector, like used clothing, is a factor in Africa’s slow adoption of clean mobility units. A policy is needed to address the dangers of dumping used vehicles in developing countries, as demonstrated by the latest appeal from the UN Environment Program (UNEP) in June of this year.
At this time, there are no other countries in Africa that have agreed to a regional ban on imports of automobiles older than the EURO 4 standard. Talks are ongoing with the East African Community about a similar agreement.
This is not an entire list, but Africa has to go to work on policies that ensure that every African enjoys the quality of life and dignity they deserve.
It is time for Africa to take matters into its own hands and define a course for the future, as COP26 has come to an end.
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