Car ownership has become a necessity for most people as it often shows progress in life or in businesses. The demand for automobiles has been steadily rising in the last decade, driven by factors such as urbanisation, economic growth, and a growing middle class.
However, the high cost of purchasing a vehicle often poses a significant barrier to ownership for most people due to low salaries, low incomes or financial constraints.
To overcome this challenge, car financing options have gained traction by providing individuals and businesses with the means to acquire vehicles through instalment plans and loans.
Generally, auto financing in Africa requires a down payment that can range from 30 to 70 percent of the value of the unit. Loan tenures vary but range between three to five years.
Here, lenders use the customer’s data, including the history of the customer’s previous loans, to review their creditworthiness and risk assessment before making any approvals.
The car financing industry in Africa has witnessed remarkable growth over the past decade. As the industry continues to evolve and adapt to the changing needs of consumers, it is expected to play an even more significant role in driving economic growth and transforming the automotive landscape in Africa.
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Since its launch in 2020, Autochek Africa has opened eight markets across the continent in a bid to ease the process of financing cars.
Autochek has partnered with banks, microfinance institutions, garages, and car dealers in various countries and has processed over 80,000 car loan applications.
A single application on the website or on the dealer app goes to multiple lenders, and upon review, offers are shared with the customer via the system.
“We want to empower Africans with seamless access to vehicle financing, and we are looking to deliver more solutions to bridge the affordability gap and make it easier for more Africans to purchase the vehicles they want,” Etop Ikpe, the CEO said during the AFS launch in 2022.
As the demand for car financing continues to grow, automated processes for processing customer documents will come in handy. These systems can easily adapt to handle increased transaction volumes without sacrificing speed or accuracy.
Autochek Financial Services has been an instrumental part of the company due to its credit system, which is powered by data analytics to boost real-time approvals. In simple terms, instead of individuals manually underwriting customer documents, the documents are uploaded, and the system gives offers instantly.
Car financing has opened doors to vehicle ownership for many Africans, promoting economic growth and facilitating personal and business mobility. With a range of financing options available, individuals and businesses can now fulfil their aspirations of owning a car with ease.
