Auto loan market boosts sales in Africa

Leading car lending services platform Autochek Africa has announced the launch of a dedicated new car section on its website and mobile app, allowing customers in East and West Africa to Access a variety of digital financing options to purchase new cars and trucks from reputable manufacturers. .

The offering will offer repayment terms of up to 60 months and attractive interest rates from leading regional players, such as Ecobank and Kenya’s NCBA Bank, with up to 90% financing , the company said in a press release on Wednesday, December 8.

Commenting on the launch, Autochek Africa COO Timi Tope Ologunoye said, “We are delighted to partner with financiers and the automotive industry to deliver this facility. It is in response to customer feedback that we are democratizing the purchase of new cars through interesting and affordable financing options.

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Ologunoye added that financing new cars and opening a new frontier of automotive FinTech is part of the company’s vision to cement its position as a leading auto lending platform in the African region.

Despite a pandemic-induced drop in overall new car sales due to production restrictions, sales volumes are beginning to increase as economic activities resume. And according to a study published in the statement, the size of the African automotive market, currently valued at $90 billion in 2020, is expected to increase by 30%, mainly due to a 10% increase in financing penetration from a year to year.

Launched in October 2020, the automotive technology company offers financing options from more than 70 banks across the continent. Loan applications are processed within 24 hours, with terms including a 15% interest rate for loans repayable over four to five years.

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And so far, the data shows that its business is gaining momentum. Since its launch, the startup has processed over 46,000 loan applications across its five markets in West and East Africa – Nigeria, Ghana, Kenya, Ivory Coast, Kenya and Uganda – counting more than 1,000 dealers in the Autochek network and more than 15,000 certified and financeable vehicles on the Autochek marketplace.

In a recent interview with PYMNTS, the CEO of Autochek Africa Etop Ikpe explained how the auto company facilitates financing for its consumers by sending a request to all banks in their system, along with consumer information and underwriting analysis on the cost of the vehicle.

“With traditional loan application systems, you apply and select the bank you want to apply to. [But] in our case, you make a request, and it goes to all the banks and they have a chance to make you an offer,” Ikpe said, adding that ultimately a request can pay up to 10 to 15 different offers within 30 minutes to 24 hours.

In October, the Lagos-based company announced that it had secured $13.1 million in seed funding, less than a year after raising $3.4 million in pre-seed in November 2020.

The company has earmarked the investment to deepen its presence in West Africa and expand its presence across East Africa, following its recent acquisition of Cheki Kenya and Cheki Uganda, the world’s leading online automotive marketplace. ‘East Africa.

The company also plans to leverage the extensive retail network of Japan’s Toyota Tsusho – the company’s subsidiary, Mobility 54is one of Autochek’s investors – in 46 African countries to deepen its expansion in the region.

Now, with its all-new automotive portfolio, the company aims to launch more than 300 new listed cars in all markets by the end of the year, while adding multiple carrier partners to the Autochek platform.

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