Autochek has reiterated its commitment to deepening auto financing across the country, despite financial institutions’ low efforts in lending to Small and Medium Enterprises (SMEs) as a result of high default rates.
Speaking during a partnership launch event with one of its financiers in Accra, Ayodeji Olabisi – Country Manager at Autochek Ghana said: “Our mission is to deepen the penetration of auto-financing across Africa, and Ghana represents a significant market on that mission”.
Mr. Olabisi stated that although the majority of businesses are in the informal sector, financial institutions still consider players in that space too risky and would prefer not to lend to them.
Since launching in September 2020, Autochek Ghana has been able to onboard car buyers, car dealers, workshops and financiers onto one platform, which has in turn contributed to affordable car ownership in the country for both business owners and salaried workers.
According to him, Ghana continues to set the pace as one of the fastest-growing automobile markets in Africa, despite recent economic challenges post COVID-19.
He said the industry contributes a quarter of the country’s GDP and is dominated by a customer to customer (C2C) mode of business – that is, car dealers operating from small outlets in major cities of the country and a few distributors who deal in newly-manufactured vehicles.
“In 2022, according to a report by Ghana Automobile Dealers Association, the number of cars imported into the country totalled 100,000. With the plan by government to have a vehicle financing scheme for locally-made cars still underway, loan accessibility for individuals remains a key challenge,” he said.
He indicated that high interest rates and low income among salaried workers in the country have continually contributed directly to low levels of vehicle ownership, which was recorded at 11 percent per 1000 inhabitants in the last few years. “With most of the population living on the outskirts of Accra and other major cities, the daily commute via public transport is a hustle you want to avoid if you are able to,” he added.
Autochek’s solution enables SMEs to get auto-financing by providing basic documents: such as six months’ bank statement; business registration document; and a Ghana card. The vehicle stands as collateral for the loan, hence additional collateral is not required.
After completing the loan application, customers have the flexibility of paying their loan over a period of time and at a wider range of interest rates, while considering offers from different financial institutions on the platform. The entire process of driving away with your dream-car can be completed within three working days, following a minimum down-payment of 30 percent.
