Co-op Bank, Head of Business Banking, Moses Gitau (center), signs a partnership agreement with World Navi Co. Ltd Managing Director, Yoshifumi Sawada (right)
Co-operative Bank has partnered with used car exporter World Navi Co. Ltd to launch a financing scheme to enable Kenyans to import second-hand cars. The partnership guarantees a safe and reliable vehicle importation including three months warranty on the engine & transmission, accident free & genuine mileage certificates and zero risk of stolen parts or non-performance.
The new service will help customers to import quality second-hand vehicles at affordable prices from key source markets in Japan, UK and Thailand as well as secure up to 80% financing for the purchase. With this service, the Bank will also finance approved motor vehicle dealers to enable them to import vehicles on behalf of their customers.
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 pro-forma 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 (at least 20%) 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 Ksh. 500,000.