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Home / Nedbank to focus vehicle financing on second-hand market
Nedbank to focus vehicle financing on second-hand market
2017-11-21Staff Report 2 Staff Reporter Windhoek-The Namibian economy is still in recovery with consumers finding it difficult to move forward and to meet their obligations. This is a time for consumers to be wise about their financial decisions; to consolidate and pay off their debt and to restructure debt to ease monthly repayments until their situation improves. It’s with this in mind that Nedbank earlier this year launched a campaign to inform consumers that in they are able to restructure their home loans over longer repayment periods, to ease the monthly payments. The longer-term total repayment will increase as a result, but consumers can also restructure their home loans to shorter repayment periods when their situation improves. The aim is to provide relief in the current economic environment. With a similar intention we also announced a transactional account with one flat fee of N$120 per month, inclusive of all transactions, in order to help Namibians save on banking fees and have more money in their pockets. Recently, we have been inundated with requests to look at similar opportunities in the vehicle finance market to make it easier for people to repay their vehicles but also to fund new vehicles. In terms of repayment, similar options to restructure repayment periods exist and clients can speak to our vehicle finance department to guide them and come up with a solution that suites their current needs. In some cases people also need new vehicles, despite the prevailing economic climate. With that in mind we decided, for the time being, to shift our focus to a portion of the market that is not traditionally well-supported by banks: the pre-owned vehicle market. We have relaxed our criteria for financing pre-owned vehicles and extended the qualifying criteria for financing models dating back to 2011. Similar to new vehicles, regulation to protect consumers still require a 10% deposit on the purchase, but we allow you to pay the outstanding amount back over 54 months just like new vehicle purchases. This essentially means that you can now buy a pre-owned vehicle with the same criteria usually applicable to new vehicle purchases. We believe this may be a better option for many consumers as pre-owned vehicles are more affordable and combined with Nedbank financing, easier to purchase and repay. This offer is however only valid up until 31 December 2017. 2017-11-21Staff Report 2
