The sale of Mack trucks in
According to the Group Executive Director of LSM, Mr.
Shittu said, "The single digit finance has worked for us. We recorded over 100 per cent increase sales last year compared to 2012, as we surpassed our expectations." He added that more were embracing the scheme, "but we will like more people to key into it."
Meanwhile, he said LSM was still discussing with Mack Truck on the possibility of setting up an auto assembly plant in
The company's Chief Financial Officer,
The rate enjoyed, he said may be as low as 5 per cent but would not exceed 10 per cent per annum. "The rate is based on the assessment of each company's business and financial risk." He said, "the finance scheme covers not just for the trucks but in addition the trailers that would be required to run with the trucks as the Flat beds, tankers, buckets, among others."
He said, "All that is required to own your desired vehicles - the Mack Trucks and other accessories is just a down payment of 15 per cent of the value of your desired purchase. No collateral, no bank guarantee, no hassles." Shittu further explained that his company which has been into the truck business for many years, has an appreciable number of new Mack trucks in stock as well as spare parts and technical expertise.
He said those who participate in the scheme include operators in haulage and gas business, breweries, cement, consumables and all kinds of wet and dry cargo operators. "The scheme kicked off about eight months ago and it has also increased our customer base." Okunaiya said his company introduced the single digit interest rate scheme, because "our desire is to get the best for our customers, as we discovered that many banks were not adequately financing transporters businesses due to high interest rates.
"The advantage you have with us is that we have the trucks on ground and those who buy now will avoid higher prices due to the increase in the import duty tariff and levy as a result of the new auto policy."
He expressed satisfaction with the commitment of customers towards the scheme, explaining that "the good thing is that none of our customers has defaulted so far in servicing the facilities for the acquisition of Mack trucks, and this has encouraged us to extend the scheme to the Yutong bus brand, also distributed by our company". It would be recalled that LSM had in November last year, unveiled a promo for its customers to procure Mack truck spare parts at 30 per cent discount, and the promo is still on-going.
Shittu further stated, "we have come to discover that Nigerians are very credit worthy, and beyond that, the durability of the Mack trucks has contributed largely to ensure that the operators get returns for their investments which enables them to service the facility. We are highly encouraged by our customer's commitment to servicing the facility, and we believe the reason behind this is that the vehicles are performing and giving them value for their money".
Interestingly, he said, the scheme has been widely acknowledged as recently "we received an award for this innovative contribution to the truck industry as
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