Wheel Deal - Scotiabank, used-car group sign new contract
Published:Sunday | November 28, 2010 | 12:00 AM
Brian Bonitto, Special Assignment Editor
Scotiabank Jamaica renewed its commitment to provide auto loans when it inked a new deal with the Jamaica Used-Car Dealers Association (JUCDA) last Thursday evening.
At the inaugural Used-Car Dealers Awards ceremony - held at the bank's training centre on Acadia Boulevard, St Andrew - Scotiabank also lauded several used-car dealers for their outstanding work in bringing in auto loans.
"We had a significantly stronger year in retail loan demand this year when compared to last year. And, about one third of the retail loans we wrote this year were to purchase motor vehicles, 80 per cent of which were for used cars," said Bruce Bowen, CEO of the Scotiabank Group. In fact, the Scotiabank Group posted an annual profit of J$10.7 billion, a notch down from the J$11.6 billion it made in October 2009.
According to Bowen - who assumed the position of CEO in November 2008 - homes and cars were the two largest purchases people will ever make in their lifetime, therefore, it was imperative that the deal with JUCDA worked well.
Build and deliver
"We cannot be a good retail bank if we are not financing car purchases. And you (the used-car dealers), control the majority of the car sales market. That's why it's important for us to build and deliver on this relationship," he said.
The new collaborative agreement between Scotiabank and the Jamaica Used-Car Dealers Association ends December 1, 2011 and will see the bank providing loans for the purchase of used cars at an interest rate of 16.95 per cent. However, 'A' customers could further benefit from loans which are one per cent below that rate.
The current deal is an extension of a previous one which was effective from February 1 to October 31, 2010, as negotiated with past president of JUCDA, Ian Lyn.
Current president of JUCDA, Lynvalle Hamilton, commended Scotiabank for throwing the sector a lifeline at a time when the industry was still reeling under the pressure of the worldwide recession.
"Used-car dealers have told us that since the partnership was established with Scotiabank they have seen an increase in sales. We thank Scotia for that," he said.
He said the bank had increased its commitment to the association and had widened the benefits to the dealers.
At the function, Crichton Automotives walked away as Scotiabank's top performer in auto loans, while the Lynvalle Hamilton-led Auto Channel was first runner-up. Wheels and Wheels took third prize, while fourth prize was shared between JES Autobrokers and McKoy's Auto Imports.
Consolation prizes went to Crystal Motors, Best for Less, Art's Car Mart and GK Motors.