New companies offer finance options

Sheldon Williams, Gleaner Writer

Two new companies, DriverzEdge and Simpson Finance, are promising changes to the business of motor vehicle financing.

The former, an American company, aims to offer warranty periods and low interest rates for new and used vehicles. Hugh Okoye, managing director, said rates as low as 6.99 per cent are possible. However, applicants will have to satisfy strict criteria in order to qualify. "They have to be creditworthy and there will be terms that will differ among individuals. It can be on new and used vehicles up to five years," he said.

Okoye said, with DriverzEdge, loans will be approved in less than an hour. "Our new loan-approval process allows us to provide pre-approvals while the customer waits and allows the customer to complete the process without multiple trips to the dealership. We can also provide insurance quotes while the customer is waiting for their loan approval, creating a true 'one-stop' experience for our participating dealers," he said.

protection and coverage

Customers are also set to be compensated for any towing services incurred, while Power Train Plus coverage provides protection on certain parts. Premium coverage focuses on, among other areas, the suspension and transmission.

Richard Coe, finance manager at Simpson Finance, outlined a partnership with the Stewart's Automotive Group, covering all Suzuki, Mitsubishi, BMW, MINI, Freightliner, Fuso and Mercedes-Benz models. "Stewart's Automotive Group has had a long-standing relationship with an associated company of Simpson Finance Inc, based in Barbados. Because of this relationship, it was a logical decision to form a financing company in Jamaica that would provide financing solutions for customers who wished to purchase vehicles sold by the Stewart's Automotive Group. We formed a joint venture company, Simpson Finance Jamaica Ltd, which began operations in October 2013," Coe said.

repayment period

He said the repayment period varies between six and eight years. "We offer six years (72 months) financing, but we are able to offer a further two years' financing for customers who decide to use our balloon payment option, therefore giving them a total of eight years to finance their vehicles," he said. Coe also said loans can be approved within a day, depending on the receipt of a completed application and supporting documents.

A customer's credit rating is taken into consideration. "As responsible lenders, we will use whatever information is available to us to understand a customer's repayment history and their likelihood to honour the loan agreement. The information now available via the two new credit agencies in Jamaica would certainly be a source of information that would help us to make this informed lending decision," he said.

He described Simpson's interest rate as "competitive within the market and will vary depending on the vehicle purchased and the anticipated risk associated with the lending arrangement." He added that "customers can also make lump sum payments at any time, allowing them to change the structure of the finance arrangement."