NIC Bank has partnered with Delights Kenya Limited, a leading second hand vehicle importer and dealer, to offer customers financing for importation of vehicles directly from the Japan car auctions.
NIC Bank has signed a Memorandum of Understanding with the dealer, a move that will see the Bank finance up to 80% of the vehicle landed cost, with customers depositing the 20% once they identify their preferred vehicle from Delight Kenya Ltd and receive their offer letter from the Bank.
NIC Bank’s Executive Director, Alan Dodd noted that most financing of second hand vehicles by commercial banks is for vehicles currently already in the market. Local banks do not finance importation of vehicles directly from the auctions overseas. This has seen the emergence of middlemen who fund the purchase and substantially mark up the cost of the vehicles to make a profit. With this partnership between NIC Bank and Delight Kenya Limited, customers will enjoy between 10-20% savings on purchase of their chosen vehicle.
“NIC Bank will finance the vehicle right from the auction table in Japan enabling customers to get better value for their vehicles. This partnership will enable us to fund our customer’s vehicles upon successful bidding by Delights Kenya Limited on their behalf thus bridging the funding gap. It will enable customers to get better value for their vehicle purchases through lower pricing,” said Mr Dodd during the signing of the agreement at NIC Bank’s headquarters in Upper Hill.
Mr Dodd further added that NIC Bank would be the first Bank to offer this innovative financing solution for second hand car imports in this market.
Vehicles financed under the scheme will have a maximum age limit of 8 years from the year of manufacture and insured under NIC Bank Insurance Agents. The Import logistics, Custom Clearance, Terminal Handling and Vehicle Registration will be handled by Mitchell Cotts giving customers a one stop solution for the vehicle imports.
Kenya is Africa’s largest importer of used Japanese cars and is ranked the fourth largest market globally for Japan’s lucrative second-hand car industry, according to data from Japan Used Motor Vehicle Exporters Association.
Delights Kenya, which was set up in 2009, is the local subsidiary of Delights Company Ltd, which is based in Japan and is present in over six markets across the world. The local arm is one of Kenya’s leading suppliers of second hand vehicles in Kenya with three offices in Nairobi, Meru and Maua towns. They have imported 33,000 vehicles to Kenya to date.
“We assist our customers identify vehicles from the Japan auction and bring them into the country. But we are keen on ensuring we add value for the customer including ensuring the specifications that customers want are met including mileage certification, security and quality checks of the vehicles from the source market in Japan and delivered right to their doorstep in excellent condition,” said Delights Kenya Chief Executive Mr Toshiyuki Saito.
NIC Bank remains the market leader in Asset Finance and continues to enter into strategic partnerships in a bid to continue adding value and offering customer’s innovative and tailor-made financing solutions for vehicle and non-motor vehicle assets.
The partnership with Delights Kenya Ltd is the most recent following similar ones earlier in the year including Simba Colt Motors, General Motors (GM), Nissan and DT Dobie to offer the market affordable financing solutions of vehicles.