11 years ago Dolores bought a Renault Logan, model 2011, through a bank loan. Last January, she repeated her purchase, also a Renault Logan, but model 2022, for which she paid an entry of $8,000, which included $5,000, proceeds from the sale of her previous vehicle; and $3,000 of her savings.
However, this time he did not require a bank to finance the balance and opted for a direct loan with the concessionaire. Automotive and Annexes (Ayasa), in which the buyer sees advantages.
“When I bought the other vehicle 11 years ago, with Banco Amazonas, it had a lien and it wasn’t mine, instead now the car is mine from the beginning,” she explained, who must pay installments of $290 for 4 years to the dealer, but he stressed that the locator and vehicle insurance are already included.
Offering direct loans is a modality that is becoming a trend in dealerships. Some have invested to add this new business line to their product portfolios.
In the case of Ayasa, it handled the form of payment with direct credit since 2017, but in July 2019, it incorporated a new company specialized in credit financial services, Soluciones – NexCar
Juan Francisco Díaz, general manager of Solutions – NexCar, which provides direct credit for the Renault, Nissan, Baic and Foton brands; indicated that in 2020 467 operations were carried out, in 2021 452, and so far in 2022 (until February 13) there are already 46 vehicles sold under this form of payment.
The manager explains some advantages of this product. “Not only do they leave with their vehicle at 72 installments, auto insurance and a satellite tracking device are made available to guarantee their safety in different scenarios,” said Díaz, who added that in NexCar the interest rate fluctuates from 9.9% to 12.5%, depending on the customer’s profile and the entry they give at the time of purchasing the vehicle.
Learn about financing options to buy a car
Another example is Corporación Galarza, which offers multi-brand vehicles, which created the company galarplan which already has more than 60 employees, according to Rodrigo Galarza, director of the Galarza Corporation.
Galarplan currently delivers around twelve vehicles per month under the direct credit modality. The company has launched an aggressive advertising campaign with the slogan ‘Pay as you please’, which reflects the options that customers have available to purchase a vehicle from Galarplan, including direct credit.
Galarza believes that automotive credit in the banking sector is currently very aggressive and that for certain sectors or proposals it is necessary to have the option of direct credit.
Although the businessman acknowledged that sales with direct credit still have a lower percentage than other modalities, he projected that at the end of the second half of this year the number of vehicles sold under this modality will rise to 20 per month, that is, a growth of 40%.
While, Christhian Cazar, Chery brand manager in Ecuador, indicated that the brand and Corporación Maresa, Chery’s distributor in the country, began offering direct credits since 2020, during the pandemic.
“Normally, those who access direct loans use their used vehicles as part of the entry or give a higher percentage of entry. The credits can be customized in term and preferential interest rate”, explained Cazar.
Regarding the proportionality between direct credits and cash purchases, Cazar assured that they vary according to the vehicle segments, but revealed that normally 70% of sales correspond to credit (including bank and direct) and 30% to cash. in segments below $20,000. Above, the proportion of cash rises, said the manager.
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Meanwhile, the Kia brand, which also ventured into direct loans through its product creditconfirms the upward trend of this modality.
According José Antonio Errazuriz, commercial director of Kia Motors of Ecuador, During 2020, the percentage of sales in CrediKia was 10% with a total of 1,447 units. In 2021 it increased to 25% with 2,900 units; and so far in 2022, CrediKia is at 22% with a total of 370 units.
“The number of procedures that must be carried out to access a loan compared to financial institutions is significantly reduced, since we are able to deliver an immediate real-time and automated response to a loan request,” Errazuriz stressed. who pointed out that CrediKia sales occupies 25%, while the sale to bank credit 15% and finally the cash sale occupies 60% of the total, according to data at the end of 2021.
He added that the brand’s expectations for 2022 is to grow by 8% compared to 2021 in direct credit and achieve a 33% share of total new vehicles sold.
Solutions – NexCar also projects growth for this year. Díaz assured that direct credit in 2021 had 29.47% participation among all the IFIS, and that for this year they expect to reach 35%. (I)
Source: Eluniverso
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