Uganda Car hire purchase/leasing with different service providers
At Tata Uganda
Client agrees with vendor on vehicle and lease finance
Vendor recommends bank if client does not have preferred bank Proforma invoice is issued in names of the bank
Client provides necessary information to the bank For individuals, documents include personal details, bank statement of no less than 6 months and proof of income.
Your company would present memorandum and articles of association, bank statement of not less than 6 months, resolutions to avail finance, and personal details of the company directors.
On approval, the bank make will make an offer of financing along with terms and conditions of repayment As a client you will be advised to deposit margin money with the vendor or bank. The purchase order is issued to the vendor by your bank.
The vendor pays all taxes and duties and registers the vehicle in the bank's name.
Your bank then arranges comprehensive insurance of the vehicle.
The bank will then issue a release order to the vendor in favor of the client the vehicle is delivered to you.
The bank pays the vendor in full with 7 to 10 working days. You pay the bank loan in installments within the agreed tenure. Upon completion of loan payment with interest, the vehicle will registration will be transferred in your names.
If the car gets any accident before you have fully repaid the car loan, the comprehensive insurance has to replace the vehicle. In case you default on the loan and can't pay back at all, the bank will sell the
At Spear Motos Uganda
As a client you visit Spear Motos and identify your vehicle of choice.
Spear Motos the vendor then issues a proforma invoice indicating the price of vehicle and terms of payment.
You then take the quotation to your commercial bank. Bank will request for a 20% down payment from you along with other supporting documents including a financial statement and sources of income.
For a limited liability company, banks would normally require a company profile, certified copies of Certificate of incorporation, memorandum and articles of association, audited financial statements for at least two years. Your company will also have to show projected cash flow statements for two years, bank statements for the last 6 months, company form 7 and proforma invoice for the chosen vehicle.
The documents are submitted to the bank after which the bank discusses the interest rates with you/client.
When the bank approves the Vehicle asset financing, you will be given an approval letter and asked to deposit the 20% down payment, the bank pays the 80% to the vendor.
You then service the loan for up to 5 years and the vehicle acts as collateral security.