New Vehicle Deal: UBA, Mikano Motors Set 30% Deposit for Nigerians

United Bank for Africa (UBA) Plc has entered into a partnership with Mikano Motors to launch a new vehicle financing scheme that enables Nigerians to purchase brand-new vehicles by making an initial 30 per cent deposit, with the bank funding the remaining 70 per cent.

The initiative, tagged “Drive Your Dream Today”, was launched at the Mikano Motors showroom in Victoria Island, Lagos, on Monday, as the two companies seek to make vehicle ownership more accessible thru structured consumer credit.

Under the arrangement, eligible customers will pay 30 per cent of the cost of their preferred vehicle, while UBA will finance the remainder. The loan is to be repaid over a period of 36 months at an interest rate of 23 per cent.

The scheme is for salaried and self-employed Nigerians. UBA also said that individuals without fixed monthly income could participate, subject to meeting the bank’s eligibility conditions.

The initiative is expected to offer an alternative for potential vehicle buyers who may not be able to afford the entire cost of a new vehicle upfront, while allowing them to pay off the cost over a period of three years.

“The partnership was born out of the need to make vehicle ownership more accessible to hardworking Nigerians,” said UBA’s Group Executive Director-designate, Personal and Business Banking, Chidi Okpala.

“Owning a car should not be out of reach for hardworking Nigerians, and this partnership makes it far more achievable,” Okpala said.

He said customers will pay 30 per cent of the vehicle’s value, while UBA will finance the remaining 70 per cent to be repaid over three years.

Okpala said the initiative also formed part of the bank’s wider effort to deepen access to credit and get Nigerians to embrace responsible borrowing as a way of solving major financial needs.

UBA’s Group Head, Consumer Lending, Frank Okoh explained that the financing process has been deliberately simplified for customers with varying income profiles.

“If you are on a salary or running your own business, we have made the entry simple and the terms clear,” Okoh said.

He said prospective customers would first undergo an eligibility check which could be done at any UBA branch or thru email.

After a customer has been approved, the applicant can get a proforma invoice from Mikano Motors for the vehicle of their choice and go thru the financing process.

The inclusion of self-employed customers and individuals without regular monthly salaries expands the potential reach of the scheme, particularly for Nigerians whose income patterns do not conform to the conventional monthly salary structure required by some lending arrangements.

Mikano Motors says the partnership with UBA is expected to enhance access to its range of vehicles and also allow customers to enjoy the company’s after-sales support.

Tarek Mostafa, general manager, Mikano Motors, said the company’s objective was not just to sell vehicles but also to provide customers with a complete ownership experience.

“Mikano Motors was founded to offer Nigerians a high-end ownership experience from the showroom to years down the road,” Mostafa said.

He said the company’s after sales services include provision of genuine spare parts, maintenance and servicing support across the country.

Mostafa said the partnership with UBA would give more Nigerians access to Mikano vehicles and the support services that come with ownership.

“Partnering with UBA allows more customers to experience that, and we are proud to build deep relationships with a bank that shares our commitment to service,” he added.

The vehicle financing program is in line with UBA’s drive to broaden consumer lending and create financial products that allow people to fulfilll big-ticket purchase needs without paying the full amount in advance, the bank said.

The deal comes as interest in vehicle financing is growing as consumers and businesses look for ways to cope with the rising cost of getting new cars.

The “Drive Your Dream Today” scheme allows eligible customers to buy new vehicles from Mikano Motors with a structured repayment option by combining a 30 per cent initial payment with bank financing for the remaining 70 per cent.

According to the bank, interested customers can start the process by checking their eligibility with UBA before choosing their desired vehicle and obtaining the requisite proforma invoice from Mikano Motors.