More headwinds for car sales

Autodealers will no longer be able to offer prospective buyers 60-month payment terms, and financing banks must charge a 10% deposit on all vehicle transactions.
This week Bank Windhoek reminded all vehicle buyers that as from Monday, 01 August 2016, amendments to the Credit Agreement Act came into force.
“The amendment means that the minimum deposit required is 10% and the maximum repayment period is 54 months on mechanically propelled road passenger vehicles designed to seat not more than 15 persons. These may differ according to the year models that clients finance,” said Sandra Blaauw, Manager at Bank Windhoek’s Vehicle and Asset Finance division.
Clients will not be able to purchase vehicles without paying a deposit and no deviations will be allowed on the repayment period either.
Existing clients will only be affected if they decide to trade the vehicle and buy a new vehicle, she said.
With regards to refinancing or restructuring of motor vehicle agreements, Blaauw said: “Bank Windhoek remains a responsible lender and we are always available to try and get to a mutual beneficial agreement and although this is not common, we are available to discuss options.”