Access Bank Unveils Scheme for Vehicle Ownership with 10% Down Payment

Nigerians can now acquire vehicles with an initial deposit as low as 10% and secure quick financing approval, thanks to a new vehicle financing programme launched by Access Bank. This initiative offers funding for up to 90% of a vehicle's value, with repayment tenures extending beyond four years.

The programme, dubbed AutoFest, was introduced in Lagos on Friday. Iyabo Soji-Okusanya, the Executive Director for Corporate and Investment Banking Division at Access Bank, explained that the scheme aims to tackle the financial barriers that have historically limited vehicle ownership in Nigeria. She highlighted that customers can apply digitally to access financing covering up to 90% of the vehicle cost, requiring only a 10% minimum equity contribution.

“You apply online, and you go home with the keys to your car already in your pocket,” Soji-Okusanya stated. She further noted that the platform brings together prominent vehicle manufacturers and dealers, including CIG Motors, Mikano Motors, Kewalram Motors, Stallion Motors, Elizade JAC, and CFAO, alongside financing providers. This collaboration allows customers to purchase both new and certified pre-owned vehicles through a streamlined process.

For corporate clients, the initiative is designed to facilitate access to vehicles essential for their operations. It also benefits dealers by enhancing inventory turnover and releasing capital tied up in unsold stock.

Ishmael Nwokocha, Group Head of Access Bank Mobility, provided more details on the scheme. He revealed that the bank spent six months engaging various stakeholders in the automotive value chain before launching the programme. Nwokocha mentioned that Nigeria's annual vehicle sales hover around 100,000 units, with new vehicles accounting for only about 10%, while pre-owned vehicles make up the remaining 90%. He attributed the reduced affordability for many Nigerians to rising vehicle prices.

“What are we offering today? Come with 10 per cent equity contribution, and we’ll finance the 90 per cent,” Nwokocha affirmed. He added that customers will also gain access to insurance, after-sales services, and a digital loan application process that enables applicants, dealers, and the bank to track progress. Nwokocha confirmed that the initiative extends beyond individual consumers to corporate entities, educational institutions, hospitals, and other businesses requiring vehicle fleets, with future plans to include operators in the ride-hailing and transport sectors currently outside the formal banking system.

Chizoba Iheme, Group Head, Product and Segment at Access Bank, assured customers that measures are in place to support those facing financial challenges during the repayment period. She clarified that borrowers could explore loan restructuring options instead of immediately losing their vehicles. “So long as the vehicle is still valid, it’s still running on the road, we can look at your finance and then we’ll repackage your loan,” Iheme explained. She also stated that customers are not obligated to maintain loans for the entire approved tenor and can choose to repay outstanding obligations earlier.

The programme's scope covers individuals, corporate organizations, and small businesses seeking vehicles for either commercial or operational purposes. Eniola Olutimilehin, Managing Director of CIG Motors, one of the participating dealers, expressed optimism that the partnership would effectively connect vehicle buyers with necessary financing, thereby boosting mobility and business activities. She believes this collaboration will improve access to transportation assets for both personal and commercial use.

Access Bank described the initiative as part of its broader vehicle asset financing programme, aimed at increasing access to vehicle ownership and mobility services nationwide. To participate in the Access Bank AutoFest initiative and acquire a vehicle, interested parties are advised to contact their account officer, fill out the Vehicle Asset application form online, or send an email to [email protected]