Omanghana
Automobile distributor Zonda Tec Ghana has partnered with about 15 banks and financial institutions to provide vehicle-financing options for customers seeking to purchase brand-new cars, trucks and heavy equipment without paying the full cost upfront.
The arrangements are intended to make new vehicles more accessible to salaried employees, business owners, small and medium-sized enterprises, and commercial fleet operators.
Participating institutions include Fidelity Bank, Ecobank, Zenith Bank, United Bank for Africa, Universal Merchant Bank and Agricultural Development Bank, among others.
Representatives of the financial institutions recently participated in the Zonda Tec Auto Sale and Expo at the company’s showroom in Dzorwulu, Accra. The event allowed potential buyers to inspect vehicles, undertake test drives and discuss financing directly with lenders.
Banks May Finance Up to 80%
Under one of the advertised arrangements, qualified customers may receive financing covering up to 80% of a vehicle’s purchase price.
A buyer approved for the maximum facility would be required to contribute the remaining 20% as a down payment. The bank would then pay the financed portion directly to Zonda Tec.
The actual equity contribution may differ depending on the lender, vehicle, applicant’s income, credit history and ability to repay.
Financing approval is not automatic. Each bank conducts its own affordability assessment and applies separate credit policies, interest rates, fees and documentation requirements.
Repayments may be spread across an agreed period and made through monthly deductions. Depending on the lender and facility, the payment period could range from 12 to 60 months.
Applicants must obtain a written offer from the selected bank showing the applicable interest rate, insurance costs, processing fees and total repayment amount before accepting the loan.
Vehicles Available Under the Arrangements
The financing options cover passenger vehicles, sport utility vehicles, commercial trucks and selected heavy-duty equipment distributed by Zonda Tec.
Available passenger and SUV brands include Chery and Great Wall Motor products. Models marketed by the company include the Chery Tiggo range and GWM vehicles such as the Haval Jolion and Tank series.
Commercial customers can also explore financing for Sinotruk trucks, trailers, tractor heads, construction machinery and other heavy-duty vehicles.
Electric vehicles and newer electric commercial models are also included in Zonda Tec’s wider product portfolio.
The company is an authorized Ghanaian distributor of brands including Chery, Haval, GWM, Sinotruk, Forland and Shantui. It operates several branches and distributes passenger, commercial and industrial vehicles. Zonda Tec Ghana
Customers should confirm the availability, price, warranty and financing eligibility of a particular model before submitting an application.
How Customers Can Apply
The acquisition process begins with the customer selecting a vehicle at an authorized Zonda Tec showroom.
Buyers may inspect the available models, request specifications and take a test drive before making a decision. Once a vehicle has been selected, Zonda Tec issues a proforma invoice containing its price and relevant transaction details.
The applicant presents the invoice to one of the participating financial institutions when applying for an auto loan or asset-finance facility.
The bank then reviews the applicant’s identity, income, credit history, existing financial commitments and ability to meet the proposed monthly repayments.
If the application is approved, the lender issues a letter of offer setting out the amount financed, required down payment, interest rate, repayment period and other conditions.
The buyer pays the required equity contribution, while the bank disburses the approved balance to Zonda Tec. The vehicle is released after the payment and documentation requirements have been completed.
Monthly repayments may subsequently be collected through salary deductions, direct debit or a standing order.
Requirements for Salaried Applicants
Although documentation differs among lenders, salaried applicants may be required to submit:
- A valid Ghana Card
- Recent payslips, usually covering three to six months
- Personal bank statements
- Proof of residential address
- An introductory or undertaking letter from the employer
- Evidence of employment and income
- A completed auto-loan application form
- The vehicle’s proforma invoice
The bank may also verify the applicant’s employment status and check existing credit obligations before determining the maximum amount the customer can borrow.
Requirements for Businesses and Self-Employed Applicants
Business owners, companies and commercial fleet operators may be asked to provide:
- Business registration documents
- Tax identification and clearance records
- Six to 12 months of business bank statements
- Audited or management financial statements
- Evidence of consistent revenue
- Identification documents for directors or owners
- Board resolutions authorizing the borrowing, where applicable
- Details of the vehicles or equipment to be financed
Commercial applicants may also be required to demonstrate how the vehicle will contribute to business operations and generate sufficient income to support repayment.
Interest Rates and Additional Costs
Interest rates are determined by the individual banks and may change according to market conditions, the length of the facility and the applicant’s risk profile.
Customers should not assess a financing package based solely on the required deposit or advertised monthly instalment.
Other costs may include loan-processing charges, comprehensive vehicle insurance, registration, tracking devices, valuation fees and penalties for late repayment.
A longer repayment period can reduce the monthly instalment but may increase the total interest paid over the life of the loan.
Prospective borrowers should therefore compare offers from several participating institutions and request a complete repayment schedule before signing an agreement.
Ecobank Ghana, for example, states that its asset-acquisition facility may cover up to 90% of the cost of a vehicle purchased from an approved vendor, although approval and final terms remain subject to the bank’s requirements. Ecobank Ghana
Supporting Access to New Vehicles
Zonda Tec says the partnerships are part of efforts to reduce the financial barrier to purchasing new vehicles in Ghana.
The company assembles GWM and Chery vehicles locally, a move its management says has helped build consumer confidence in Chinese automobile brands.
Providing financing at the point of sale could also make it easier for businesses to acquire trucks and machinery needed for transport, construction, mining and logistics operations.
However, customers are advised to borrow within their means and carefully examine the loan conditions. Vehicle financing creates a long-term repayment obligation, and the bank may retain a legal interest in the asset until the facility has been fully repaid.
Qualified buyers interested in the program can visit a Zonda Tec showroom, obtain a proforma invoice and compare financing offers from participating banks before deciding which arrangement best suits their income and vehicle needs.
Source: Omanghana
