Kenya’s middle class has been on the rise in the past couple of years and with this rise, there has been a great increase in demand for vehicles. However, most people prefer to import second-hand vehicles from abroad either UK or Asia.
It is through this that Co-op bank, on 26th April 2019, decided to put pen to paper and enter into a partnership with one of leading car exporters.
The partnership is aimed at helping Kenyans import second-hand vehicles from abroad without any hitches as well as provide a secure platform from where Kenyans can import vehicles without having to worry.
This partnership will also help solve the problem involved in importing the vehicles. Some of the key problems are unreliable agents and inflated vehicle prices by some agents among others.
The bank will help customers import cars from Japan, the United Kingdom, and Thailand. The bank will be offering 80% financing of the total cost for individual customers and also approved vehicle dealers importing cars for their customers.
The company will handle the purchasing of the used cars, quality check, shipping, clearance at the port and also delivery to the customer. This will efficiently ease the hassle involved in bringing the car from abroad as an individual since one will just make an order and wait for the delivery. To make the order, one needs to select the car of his or her choice. Once this is done, you will receive a general pro-forma invoice.
At this point, the Co-op bank will act as the intermediary depending on the type of the customer. If the customer intends to finance the total cost, they will deposit the whole amount in a Co-op bank account where it will be held until they receive their vehicle. If the customer seeks to be financed by the bank, he or she will also log on to the website and follow the steps involved and wait for the proforma.
After getting the proforma invoice, they will apply for the loan with Co-op bank. Once the loan is approved, they will receive an offer letter after which they will make their contribution of at least 20% of the total cost and the bank will cover the remaining costs. Once the customer is in possession of the vehicle he or she will confirm delivery by executing the delivery note.
The good news is that it will service both Co-op Bank customers and non-customers who want to import any vehicle.