Buyers who pay half the price of the Sh3.9 million Toyota Hiace in cash will get zero per cent interest one-year loans to fund the balance, with Toyota absorbing the interest payments.
Those seeking 80 per cent financing to buy the model will pay a 14 per cent interest rate for loans payable in four years.
Both options will require a one per cent commitment fee and comprehensive insurance cover, Co-op said.
Toyota Kenya and Co-operative Bank #ticker:COOP have signed an agreement to offer buyers of the motor dealer’s matatus discounted financing costs in a bid to grow sales.
Buyers who pay half the price of the Sh3.9 million Toyota Hiace in cash will get zero per cent interest one-year loans to fund the balance, with Toyota absorbing the interest payments. Those seeking 80 per cent financing to buy the model will pay a 14 per cent interest rate for loans payable in four years. Both options will require a one per cent commitment fee and comprehensive insurance cover, Co-op said. This means the bank will earn Sh39,000 on each matatu sold in the deal targeting long-distance matatu co-operative societies.
“With this partnership we will enable customers to purchase new units instead of used ex-Japan units guaranteeing more profits, less fuel, less downtime and a three-year/100,000km warranty on the vehicle,” said Maurice Matumo, director for retail and business banking at Co-op Bank.
Toyota is banking on the partnership to grow sales of its brand new matatus which face stiff competition from cheaper imports mostly from Japan.
“Research showed that customers preferred low capacity buses for long distance travel as they take a shorter time to fill up but the biggest challenge with them is on-board comfort and safety,” said Toyota.
