The Co-operative Bank of Kenya (Co-op Bank) has launched a financing scheme through a partnership with World Navi Company Limited a leading Japanese exporter of used units to Africa and Europe, that will see Kenyans import second-hand cars.
The partnership guarantees a 100 percent safe and reliable vehicle importation including three months warranty on the engine and transmission, accident-free and genuine mileage certificates and zero risks of stolen parts or non-performance.
This service will help customers to import quality second-hand vehicles at affordable prices through a secure platform from key source markets in Japan, United Kingdom and Thailand as well as secure up to 80 percent financing for the purchase.
Co-op Bank will also be able to finance approved motor vehicle dealers to enable them to import vehicles on behalf of their customers through the service.
Speaking during the agreement signing with World Navi at a Nairobi Hotel, the Head of Business Banking at Co-operative Bank Moses Gitau said the partnership creates an end to end solution for people to import quality second-hand vehicles at affordable prices.
“Majority of Kenyans depend on the import second-hand vehicle market to own a car but one of the prevailing issues plaguing the public is the anxiety of finding a reliable agent who will ensure they get what they are paying for,” he said.
Speaking at the same event, World Navi Managing Director Yoshifumi Sawada said the seal intends to meet the local market’s needs on used vehicles which will reach out to most of the market areas across the entire country through its 150 branches.
“Our company is offering its 20 years’ experience in the business of exporting used cars globally with the assurance of every customer receiving High-Quality cars through the unique: 3 months warranty on engine and transmission which no other exporters can offer,” he said.
The service is open to both Bank customers and non-customers wishing to import vehicles using either their own funds or looking to be financed by the Bank.
For customers purchasing the vehicle using their own funds, they would identify the car on the World Navi’s website, place the order then receive a general invoice. The customer will then deposit the whole amount into an internal account with the bank, where it will be held until the car is shipped and delivered to them.
Customers seeking financing from the Bank to buy the vehicles would follow the same process in identifying and ordering the car, however on receipt of the general Pro-forma invoice they would start the loan application process with the bank.
Once approved, the customer will receive an indicative offer letter and would then proceed to deposit their own contribution into an internal account and the Bank will cover the rest, enabling the import agent to ship and deliver the vehicle.
The vehicle purchase will be handled wholly by World Navi; they will purchase the vehicle on behalf of the customer, carry out quality checks and ship the car to Kenya.
The documents will be consigned to the bank, who will release them to the clearing agent to facilitate clearing and registration following which the vehicle is delivered to the customer.
Once the customer receives the vehicle, they will execute a delivery note confirming receipt. The minimum car purchase amount is 500,000 shillings.