As Buy Now Pay Later (BNPL) increasingly gets integrated into market dynamics, more companies looking for market shares, from e-Commerce firms to auto dealers, are beginning to onboard the idea or a similar technique.
As such, Autochek Africa, the leading auto tech platform, has launched a dedicated brand new cars section on the Autochek website and mobile app. The goal is to help customers to access digital financing for brand new cars and trucks.
As of 2020, the African automotive market value was estimated at $90 billion, with a 30% growth projection expected to be largely driven by 10% YoY increase in financing. However, the outbreak of covid has derailed the market’s growth as lockdowns and safety restrictions greatly limited car sales. But the derailment has also increased the growth opportunity of the auto market and Autocheck is seeking to take advantage of it.
The auto company has partnered with Ecobank, NCBA, Access Bank and Stanbic KE to offer repayment tenures up to 60 months with the lowest interest rates in the market. The loan service also involves 0% equity loan product and unique financing solution of up to 90% for brand new vehicles.
The Autochek auto loan services platform offers a variety of financing options from over 70 banks, with attractive terms that includes 15% interest rate and repayable for a period of between four and five years. The loans are also processed within 24 hours.
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. 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 (Land Rover) and CMC (Ford and Eicher Trucks) in East Africa and Dana (Kia), Coscharis (BMW, Land Rover), Globe (Mercedes Benz), Elizade (Toyota) in West Africa.
Autochek is also working to widen the reach of the loan service through partnership with indigenous manufacturers such as Innoson Motors and Nord Motors. 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 the idea was borne out of customer feedback. “We are excited to partner with financiers and the automotive industry to provide this facility. It is in response to customer feedback to democratize purchase of brand-new cars through great and affordable financing options. It is complemented by Autochek Africa’s residual value analysis tool that can guide financial partners on the condition of the vehicle over time,” he said.
Timi added that financing for new cars is part of the company’s vision to unlock a new frontier of automotive fintech and cementing 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.
Speaking on the loan service, Autochek’s SVP West Africa, Dr. Mayokun Fadeyibi said: “We are on a mission to accelerate motorization across Africa by providing financing for brand new and used imports for our customers.”
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 with over 300 new cars listed across all markets.
