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Auto finance industry in Uganda; you can get a Car Loan and pay within 5 years

These days, you don’t have to have 100 per cent of the funds required to get that dream car in Uganda. There are a number of car dealers working with banks to ease payment terms over a period of time. Taking car loans or call it auto financing has helped a number of individuals and companies to acquire cars or even fleets of cars after making the required initial payments.

According to the Barclays Bank Uganda website, “Vehicle and Asset Finance is a form of secured lending that can be described as the financing of movable assets, plant and equipment.” At Barclays, security is the asset financed for the loan until the customer has fulfilled his repayment obligations. Assets include trucks and delivery vans, buses and cars, tractor heads and trailers.

According to Spear Motors’ Sales Director, Gilbert Wavamunno, they do carry out auto financing options with most of the major banks. “It is up to five years maximum. One has to pay within five years after making a 20 per cent cash deposit commensurate with the cost of car. The interest rate depends on prevailing market rate.

“You don’t have to necessarily go to the bank, we can arrange for a sales person from the bank of your choice to come to Spear Motors and finalise the deal,” he explains. He adds that it is the bank that retains one’s log book till they complete payments.

Process made easier with some Uganda Car Dealers


Wavamunno says they basically act as a link with the bank once you arrive at their showroom and want to make a purchase. Although previously this kind of arrangement was associated with brand new cars, used car dealers have also embraced this alternative.

At Motorcare Uganda, Pascal Bwire, a sales professional, says their finance leasing system is dependent on the bank’s requirement or risk. You can deposit 10, 15per cent or 20 per cent and clear in installments within five years. The bank becomes the owner of the asset till final payment is made,” he explains.

Bwire adds that although they usually deal with Stanbic and DFCU, they cannot impose a bank on you. They can still work out an arrangement with the bank you are using.
According to Sebtain Shah, a Sales person at Cosmos, it depends on the car’s year of manufacture. “For 2005 models upwards, one pays 25 per cent while for 1998-2000, clients pay 50 per cent. This is because banks don’t want to take risks on older cars. Stanbic accepts 2003 upwards,” Shah explains.

He adds that Centenary Bank, Post Bank and others accept 1997 models and upwards at 30 per cent. DFCU accepts from 1998, 2000. “In some cases, customers deposit 10-15 per cent or 30per cent in the bank then the bank pays us 100 per cent,”Shah says.

Some challenges with Uganda Banks


The only challenge is that the banks at times take long to pay. Sometimes the banks ask for logbook in the customer’s name or in the bank’s name under the new registration system. “The money takes long to come, say about three weeks to a month but we get it,” he notes.

Rehman Motors’ Manager, Suleman Mabingo says one opens an account with Equity Bank and the bank pays Rehman.
At Jambo Auto Mart, Nadim Mohammed, the Sales Manager says a customer pays 20-30 per cent deposit to them and the balance is cleared by the buyer’s bank of choice. He says Stanbic wants cars made in 2000 and above while Equity has no fixed year of manufacture.

The Monitor Newspaper Sept. 2012

Comments for Auto finance industry in Uganda; you can get a Car Loan and pay within 5 years

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Jan 25, 2020
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Inquiry
by: Ssemaganda

Suppose I want a kluger model 2000 in centenary bank loan scheme,how much iam I supposed to pay as 20%?

Dec 26, 2019
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Inquiries
by: Hamis

Am not in Uganda but I nid a car on installment basis hw can I do it coz I hv no account in any bank in Uganda instead wea I stay for my own reasons so if any one is willing to help me out ur wlcm plz

Sep 11, 2019
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Any Toyota car?
by: Gaita

Incase of bonds dealing in Toyota cars, do I choose from the available cars in bond or they available me with the car of choice.

Jul 29, 2019
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Question
by: Adrian

Question: iam a special hire taxi driver (Uber) can I get a car on loan without a formal salary(collateral) provided I pay the initial commitment?





Jul 16, 2019
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LOAN Facility
by: Anonymous

I need the contacts and email addressed so that i can get the car facility Loan

Jul 06, 2019
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What % can I get car loan in Uganda in 2019
by: Mutebi

What % can I get car loan in Uganda in 2019 and which bank or bond?

Jun 28, 2019
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How can I get a car in loan _300000ms
by: Ssemuyaba badru

I want to buy a car in installment
What is a percentage of 300000ms end what requirements do u want

Apr 11, 2019
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Requirements
by: Mugoya

What essential requirements are need

Mar 03, 2019
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Car on loan inquiry
by: Jowet

hello today, am called Matsiko Jowet I have been driving uber and paying to my boss every week, but I want to develop my self is there a car at least spacio or wish which I can pay per week until I finish it fully? For any business like that I can participate. Waiting for ur response.
Thanks
Jowet
+256756351523 WhatsApp

Jul 14, 2018
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Enquiry
by: Anonymous

Can you please link me up with one of the car dealers. Thank you


Apr 05, 2018
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taxi kigege
by: omny ronald

how much do i need to deposit in order to get a taxi kigege of about 25m

Mar 11, 2018
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Question
by: Wambi Edrine

What are the requirements to get a car.

Do you need some one buy new car or any
Thankyou

Apr 02, 2017
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i need a noah for tours and travel
by: mpairwe goliath

I used to own a noah for 7yrs but i got some family issues and i sold it off.i was doing tours and travel at queen elizerbeth national park kasese but is it possible to give me a new noah so that i can pay it in 2yrs( 0777240892)

Oct 25, 2016
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car safety
by: francis

Question
In case the car gets accidentally destroyed which options do u impose on the client? 2(2) car models like minibus are and its my affordable model to for 10, 20, or 30% can't convince the lender for my options (3)ur phone number

Answer
Typically any car loan scheme is offered alongside a comprehensive Auto insurance policy. This means that in case the car gets any problem accidentally the insurance repairs it or replaces it.

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