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The transportation system of any economy is integral to the overall performance of such an economy, as it is the second largest expenditure for the majority of urban households globally, next to housing. However, it is known that in regions such as Nigeria, the lack of sufficient buying power across the middle-class, backed by the dearth in access to adequate vehicle financing, puts cars out of reach for nearly 90% of the population. For instance, the Trading Economics, in 2018, set the average living wage on a monthly basis at 43, 200 naira per human, an income plagued by a rising inflation wage of 17.38%. Undoubtedly, the pressure on an average Nigerian’s income soars rapidly.
Therefore, dealership finance is one way to alleviate some of the burdens on Nigerians. The Buy Now and Pay Later (BNPL) scheme is a process of short-term financing that helps people purchase certain goods, entitling them to own the goods through an initial part payment of the initial cost, before spreading the balance over a period of time. The beauty of this convenient payment scheme has prevailed over several other factors when considering such payment schemes, as evidenced by the fact that the BNPL schemes have created $590 million in cost savings, enabling merchants to gain $8.2 billion in new revenue, and further obtained 13% more new customers after they began to offer the BNPL scheme.
Various dealership financing methods prevail across a wide range of companies, each with its own unique conditions. However, the procedures tend to be the same across boards. Essentially, you –the customer- identify the product you are interested, proceed to the checkout counter and request a BNPL option. Most times, after the request has been approved, a down payment is usually made. Subsequently, the remaining balance are paid across a certain period.
In Nigeria, Carsplenty has introduced this amazing scheme into the automotive industry with the aim of intervening in the dearth of spending power prevalent in the society. This is a timely innovation in the local automobile industry, as Carsplenty provides a financial model that aids the spending power of the average Nigerian. Ultimately, this ensures that the vehicle needs of such individuals are met via the BNPL scheme.
With payment schemes that eliminate the urge to save in bulk, Carsplenty matches its customers’ repayment plans with the customers’ monthly incomes. However, certain conditions must be met. First, the customer must make a 30% down payment on the vehicle, while the balance can be easily spread across one to two years. Other requirements include:
- The buyer must possess a checking account with a verified Nigerian bank;
- An office address; and
- National identification.
This process can be done through the brand’s online platforms, by simply downloading their mobile apps, which are available on both the Google Play and IOS stores. Carsplenty, through its innovative services, continue to push the boundaries of the automobile industry in Nigeria.
