The state of car financing in Ghana today: An overview 

Ghana continues to set the pace as one of the fastest-growing automobile markets in Africa, despite recent economic challenges post Covid-19. The demand for cars is mostly met by imports into the country, with the majority of cars being second-hand.

The industry contributes to a quarter of the country’s GDP and is dominated by Customer to Customer (C2C) mode of business i.e.Car dealers operating in small outlets in major cities in the country and a few distributors who deal with newly manufactured vehicles.

In 2022, according to a report made by Ghana Automobile Dealers Association, the number of cars imported to the country totalled to 100,000 units on average yearly. With the plan to have a vehicle financing scheme for locally made cars by the government still underway, loan accessibility for individuals remains a key challenge.

High-interest rates and low income among salaried earners in the country has continually contributed directly to low levels of vehicle ownership, which was recorded at 11% per 1000 inhabitants in the last few years. With most of the population living in the outskirts of Accra and other major cities, the daily commute via public means is a hustle you want to avoid if you are able to.

In addition, despite 80% of the businesses making up the informal sector in Ghana, financial institutions still consider it risky to lend SMEs due to a lack of proper business proposals or unprofitable investments which lead to high default rates.

What does Autochek Ghana bring to the table?

Since its launch in September 2020, Autochek Ghana has been able to bring onboard car buyers, car dealers, workshops and financiers on one platform, which has, in turn, contributed to affordable car ownership in the region for both business owners and salaried earners.

Autochek solution enables SMEs to get profiled and eligible for Auto financing by providing basic documents such as 6 monthly bank statements, Business registration documents and a Ghana card. The vehicle stands as collateral for the loan, hence additional collateral is not required.

After completing the loan application, customers have the flexibility of paying their loan over a period of time and at a wider range of interest rates while considering offers from different financial institutions on the platform. The entire process of driving away with your dream car can be completed within 3 working days, following a minimum down payment of 30%.

Speaking during a partnership launch event with one of the financiers, Ayodeji Olabisi, Country Manager at Autochek Ghana had this to say “Our mission is to deepen the penetration of auto financing across Africa, and Ghana represents a significant market on that mission.”