As the year 2022 comes to an end to usher in 2023, Co-operative Bank customers can welcome the New Year in style owing to the recently launched full financing in purchasing pre-owned for available to Co-operative Bank clients.
Effectively, the revolutionary credit facility product for purchasing second-hand cars gives Kenyans an upper hand a have fulltime mobility at their own convenience.
The bank says it will be funding up to 100 per cent for those seeking to buy private pre-owned motor vehicles.
This will save the prospective car owners the hustle and bustle of the public transport system in the country.
The product now enables a Co-op Bank client to walk into a second-hand car dealership, select their favourite car model and get full financing from the bank.
However, one of the pegged pre-conditions is that the car has to be a maximum of eight years old to ensure that the customer gets value for money.
“Anyone with an income can walk into a second-hand car dealership, select the vehicle that best suits them, and get financing from Co-operative Bank,” the banks say.
The repayment period of the credit facility ranges between 60 months to 96 months, with the vehicle being purchased acting as the security.
The product is part of Co-op Bank Asset Finance, the self-securing loan product for the financing of moveable assets. Asset financing offers great flexibility and helps applicants free up cash by enabling them to acquire more assets.
The pre-owned cars credit-line has very flexible requirements: you just need a copy of national Identity Card and (Kenya Revenue Authority (KRA) PIN certificate, an introduction letter from your employer as well as last three months’ pay slips and six months’ bank statements for those not banking with Cooperative Bank.
The rest of the paperwork includes normal documentation and due diligence procedures such as copies of employment contract, or letter of appointment, motor vehicle sale agreement/proforma invoice, copy of logbook/import documents/NTSA search records and valuation report from Co-op Bank approved valuer, among others.
Statistics show that Kenya imports 7,000-9,000 units of used cars a month, mainly from Japan, United Arab Emirates, United Kingdom, Singapore and South Africa.
Currently, majority of Kenyans are opting for pre-owned cars as the cost of new cars has skyrocketed beyond the reach of many Kenyans with average incomes coupled by the fluctuation of the dollar.
Moreover, Co-op Bank has not only extended the financing to local dealers, but also made it possible to access full the credit facility to cover the price of the car in full.