Stanbic Bank Ghana has introduced a vehicle financing structure that makes the process for vehicle loan acquisition easy and seamless for its customers.
Data from the Driver and Vehicle Licencing Authority (DVLA) show that between 2012 and 2016, a total of 694,656 vehicles were registered in the country.
Out of this number, over 75 per cent (520,992) were used cars, making the purchase of brand new cars the preserve of a few Ghanaians.
According to Vehicle and Asset Financing Manager of Stanbic Bank Ghana, Wendy Nelly Sarpong, the bank’s vehicle financing structure goes beyond just giving out loans, to provide a holistic vehicle financing package that benefits its customers.
“Our product is structured in a way that engages the customer right from the point of choosing the vehicle through to financing it, till the time the vehicle is delivered to you,” she said.
The Vehicle and Asset Finance unit of Stanbic Bank, according to Ms. Sarpong, includes vehicle dealership where the bank serves as the third party to the transaction.
“This makes it easier for customers to purchase vehicles from trusted dealers while getting the vehicles at a discounted price due to the relationship between the bank and the dealers. This also serves as a relief for customers who want certain cars but lack the required amounts of money to buy the cars,” she said.
Another benefit Stanbic Bank’s vehicle financing structure provides is an insurance cover for the vehicles purchased.
“If you are buying through us, the bank offers insurance,” Ms. Sarpong said. “If you buy a car, you are required by law to insure the vehicle- an offering which is embedded in our package.”
What this means, according to Ms. Sarpong, is that Stanbic is able to amortise the insurance quote to the cost of the vehicle and then the customer pays monthly. This is a more convenient option than having to buy a car and pay insurance – whether comprehensive or third party – at a go.
Ms. Sarpong advised customers to always consider their income before applying for a vehicle financing facility from a bank. She said beyond the vehicle purchase, there are also the financial burden of vehicle servicing and maintenance, which is very expensive for certain categories of cars.
“Customers who want a vehicle mostly want it for transportation to move from one place to another but do not know the details of it,” she said.
“If you depend on vehicle dealership, they will obviously not badmouth their product. And fortunately, we have the advantage because we work with the dealership and we can easily advise what good vehicle fits a customer’s budget.”
Stanbic Bank Ghana’s vehicle financing unit has been in operation since 2006 and is dedicated entirely to the financing of vehicles and other assets.
Story: Business Desk