Absa Bank Tanzania launches Vehicle Asset Finance to help customers purchase brand new and used cars

Dar es Salaam. Absa Bank Tanzania has introduced its Vehicle Asset Finance (VAF) in an effort to make car ownership more accessible and affordable for its customers.

The Absa VAF is a medium-term financing solution designed to help the bank’s customers to purchase both new and used vehicles at local dealerships without the need to have the full purchase price funds upfront.

This solution reflects on the bank’s strategic focus on providing financial solutions that resonate with its customers' lives and aspirations.

Speaking during the launch of the service in Dar es Salaam on Wednesday, the Head of Retail Banking at Absa Bank Tanzania, Ms Ndabu Swere, said the lender decided to come up with the solution after realizing that purchasing a car was an expensive exercise.

“And since people are not always liquid, they may need assistance from somewhere and especially when car dealers need upfront payments. So, this is where Absa Vehicle Asset Finance comes in,” she said.

The Absa VAF offers financing of up to 90 percent for brand new cars and up to 80 percent for used cars with the financed vehicle serving as the collateral.

The product allows customers to obtain funds to purchase a vehicle of their choice at the time when they wouldn’t have all the funds upfront. “This frees the customer’s cash, leaving them with more flexibility to either invest or use their savings for any unforeseen costs that may come up during the year,” said Ms Swere.

A customer also gets instant access to the car as soon as the bank completes the VAF loan process.

“It reduces the financial burden on the customer by allowing the customer to spread the cost over time with smaller regular payments with the customer only needed to provide a small amount upfront,” she said.

According to the bank’s Marketing and Communications Manager, Mr Beda Biswalo, the bank’s Marketing and Communications Manager, the VAF solution was a business strategic addition to the bank’s offerings.

“At Absa we care deeply about the stories of our customers and the progress they make in life. We are inspired by our customers’ journeys and want to be part of their scripts, part of the true stories they will tell for years to come when they narrate their success journeys…,” he said.

To access the facility, said Ms Swere, a customer needs to identify a vehicle they are interested in buying from one of the bank’s carefully selected car dealers.

The customer will then apply for a VAF facility through the bank’s loan officers.

“We then assess the customer’s application and if the customer qualifies they will be asked to make a downpayment into an Absa account, Absa will make the full payment (down payment + remaining balance) to the car dealer, the customer will be handed their car to enjoy their new ride,” she said.