…to make vehicle acquisition affordable, flexible
Universal Motors Limited, a local partner for Volkswagen, has signed a memorandum of understanding (MoU) with Access Bank Ghana Plc and Allianz Insurance to make it easier for Ghanaians to acquire locally assembled Volkswagen vehicles.
The partnership signifies commitments to providing comprehensive solutions to potential customers and to revolutionalise financial and insurance services offered in the automotive industry.
Chief Executive Officer of Universal Motors Ltd, Subhi Accad, said the journey to this achievement begun in 2018 when President Nana Akufo-Addo launched the automobile policy.
“Recognising the potential at the launch of the automobile policy, we took the opportunity and initiated conversations,” he said, adding that the partnership is part of efforts to make locally assembled vehicles affordable to Ghanaians.
“All over the world, about 98 percent of the people buy cars on credit, which makes it easier than having to raise a huge amount at a go for purchasing a car,” he said.
Speaking on the competition between the ‘made in Ghana’ cars and imported used cars, he explained that his company is not interested in pushing dealers in secondhand vehicles out of business but is rather calling on them to join hands so that they work together to reduce importation of cars that are not made for the country’s roads.
Head of Bancassurance for Allianz Insurance, Naa Adjeley Hylton-Dei, said the role of Allianz Insurance in this partnership is to secure the purchased cars by giving an opportunity for customers to buy comprehensive motor insurance policies.
“What is the use of paying so much for a vehicle and not securing it? Once you buy a comprehensive motor insurance from Allianz, you do not only get secured with a peace of mind, but there is a valued added-on given to customers – free fuel coupons for the first few customers who purchase vehicles through this partnership,” she noted.
Group Head, Retal Banking for Access Bank Ghana Plc, Matilda Asante-Asiedu, also indicated that Access Bank’s responsibility in the partnership is to provide loans where a valid customer will be given a grace period of 2-5 years which will be based on a customer’s ability and cash flow. Ms. Asante-Asiedu said: “Not many Ghanaians can afford to take a bag load of money to purchase a vehicle, reason why Access Bank has joined the partnership to make it flexible for eligible and interested customers to get a loan and pay back in installment every month”.
She added that in other to make sure that loans are given to eligible customers, they are made to go through and sign a risk acceptance criteria form provided by the bank: “We do not give loans to just anybody, we make sure the customer first of all has a sufficient monthly income, and also has a track record of monthly sustained income”.