Co-operative Bank has formed a joint partnership with World Navi Co. Ltd, a leading Japanese exporter of used units to Africa and Europe, launching a financing scheme to enable Kenyans to import second-hand cars. The partnership guarantees a safe and reliable vehicle importation process including three months warranty on the engine and transmission, accident free and genuine mileage certificates as well as zero risk of stolen parts or non-performance.
In line with the bank’s efforts to build a strong offering for its customers and the public in general, this service will help customers to import quality second-hand vehicles at affordable prices through a secure platform from key source markets in Japan, UK and Thailand. They shall also 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.
Speaking during the agreement signing with World Navi at a Nairobi Hotel, the head of business banking at Co-operative Bank, Mr Moses Gitau said: “Our partnership with World Navi provides an end-to-end solution for anyone seeking to import quality second hand vehicles at affordable prices through a secure platform that gives them peace of mind.”
Speaking at the same event, World Navi Co. Ltd managing director, Mr Yoshifumi Sawada said : “Our company is offering its 20 years’ experience in the business of exporting used cars globally with the assurance of every customer receiving high quality cars through the unique 3 months warranty on engine and transmission which no other exporters can offer. We have an office in Nairobi with experienced staff who can handle all the complex stages of selecting, purchasing, shipping, clearing and transportation until you receive your keys. Our partnership with Cooperative Bank of Kenya is indeed another seal of approval of our company’s strength within this trade to meet the local market’s needs on used vehicles which will reach the majority of the market areas across the entire country through its 150 branches.”
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 shall identify the car on the World Navi’s website, place the order then receive a general pro-forma invoice. The customer shall 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, shall follow the same process in identifying and ordering the car, however on receipt of the general pro-forma invoice, they shall start the loan application process with the bank. Once approved, the customer shall receive an indicative offer letter and then proceed to deposit their own contribution (at least 20%) into an internal account. The bank shall cover the rest, enabling the import agent to ship and deliver the vehicle.
World Navi will purchase the vehicle on behalf of the customer, carry out quality checks, before shipping it to Kenya. The documents will be consigned to the bank, who will release them to the clearing agent in order to facilitate clearing and registration following which the vehicle shall be delivered to the customer. Once the customer receives the vehicle, he or she will execute a delivery note confirming receipt. The minimum car purchase amount is Kshs. 500,000.
Co-operative Bank firmly believes that forming partnerships that benefit their customer is key to success. Before providing a financial solution, Co-op Bank ensures that they weigh the business need and the prevailing market situation versus the opportunity and customers’ needs. This ensures that the partnership deal meets the customer needs and keeps up with the ever changing market.