Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,195,153 members, 7,957,304 topics. Date: Tuesday, 24 September 2024 at 10:40 AM |
Nairaland Forum / Nairaland / General / Car Talk / Fg To Launch Federal Auto Mortgage Scheme In October - Aganga (1404 Views)
Innoson Vehicle Manufacturing Company (IVM) Launches An Auto Finance Scheme / FG To Take Over Expansion Of Lagos-badagry Road / FG To Phase Out Tokunbo Cars (2) (3) (4)
Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by calabardick(m): 2:41pm On Oct 01, 2014 |
In order to encourage Nigerians buy made in Nigeria cars as well as own brand new cars, The Federal Government has concluded all necessary plans to launch an automotive credit purchase scheme latest by next month, a scheme that will offer Nigerians an opportunity to pay for purchased vehicles over a period of time as obtained in other countries.. The Minister of Industry, Trade and Investment Olusegun Aganga made the disclosure on the side-lines of the 69th United Nations General Assembly, in New York recently.. “In England if you enter a house, you see beautiful furniture and all that most of it is on credit. So we are saying we want to come up with credit purchase scheme whereby rather than buy that N800,000 used car, you buy a new N1.5 million car, you pay over four years at interest rate that you can afford. That is what National Automotive Council (NAC) is using that levy for, to work with banks so that you can be assisted to buy a new car. We hope to launch that very soon. So when you come with any new policy you have to think through, what do I need to do‎ to make it work and ensure that there are things already in place to make it work” he said. “Why would anyone say is hasty? We had auto strategy 30 years ago when Peugeot came into the country we killed it and we are resuscitating it. ‎Now you said we are in a hurry when nothing happened in 30 years?. “The way to look at it is that it is going to happen any ways whether it is today, five years time. So that is not the issue, the issue is what is government doing and how are we trying to solve the problem. Is government aware? The answer is yes. That is why in every country where they have introduced auto policy, they banned importation of used cars immediately because if you don’t ban used cars most people will not buy new cars therefore there is no market for investors to come in. In every country they banned it but in Nigeria we have not banned it. Secondly, the duty should be 35 per cent, levy 35 per cent but we said for used cars we keep it at 35 per cent, we have not introduced the levy until we feel the condition is right. We had waved it until December and December we halved it for another six months. That is the second thing we are doing.. “The third thing that is important that we are also doing is the fact that we said for this to work, government must do two things. Encourage those coming to assemble affordable cars. That is why today you hear Nissan said they have cars for N1.5 million or N1.6 million. Fourthly, we will encourage banks to set up credit finance schemes. The reason you are spending, 800,000 to buy car is not because you want to buy a used car that you may spend a lot of money maintaining because you are required to pay cash. Nobody anywhere in the world pays cash for this sort of thing,' he said.. m.thenigerianvoice.com/mobile/158405/1/fg-to-launch-federal-auto-mortgage-scheme-in-octob.html |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by Coldplay007(f): 7:40am On Oct 04, 2014 |
I wonder why this wonderful thread has not made front page.. I was FTC but my post was locked.... |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by Lagusta(m): 1:30pm On Oct 04, 2014 |
This is nice.... But i'm sure only government workers would benefit from the scheme, since their jobs are more stable.... |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by Coldplay007(f): 2:02pm On Oct 04, 2014 |
Lagusta:Not necessarily! If the mortgage agents will work with banks, people working in the private sector can benefit too... |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by Lagusta(m): 2:56pm On Oct 04, 2014 |
Coldplay007: now what if the following ensues: 1) a worker loses his job 2) the company liquidates and the worker/company buys the cars on mortgage, what could be done to avoid embarrassment |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by Coldplay007(f): 10:59pm On Oct 04, 2014 |
Lagusta:1. People who work in private firms actually buy cars with credit facilities.. if he loses his job, the bank reclaims the car.. When you default in payment for any reason whatsoever, the bank reclaims the car, that's why u have to make a down payment of a percentage of the cost, this will ensure that if for any reason you default, they would have a tidy percentage of the cost so selling the reclaimed car will offset the rest.. 2. The bank always retrieve their money, they can go as far as getting you a job so u will be able to pay back.. or they just reclaim the car... |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by oseo1(m): 12:46am On Oct 05, 2014 |
Most big companies already have auto policies and can help you get financing for your car. You can even go to the bank directly, what this policy does though is that it reduces the interest rate and increases the time you have to pay back the loan. |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by sultaan(m): 1:40am On Oct 05, 2014 |
This Aganga fellow self is not the type that should be running a ministry. He is coming out with policies without input from stake holders or industry insiders. It is not for the government to give out auto loans the banks should be doing it if it was a viable business. Mortgage means a property loan, when something that appreciates like a house is not a priority finance program by the government why is a car loan that depreciates in value such a thing they can roll out in months. The government should not be dictating to industries but facilitate enabling environment for all parties both manufacturers and consumers. In an industry where there is no manufacturer the consumers are a priority instead of being used as cash cow' N200k duty on all used cars over the years where is that money going. The last time they scrapped the NAC they shared the generated money between some companies with no result. 2 Likes |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by wolebanks(m): 8:03pm On Oct 17, 2014 |
In my opinion. This policy doesn't make any sense. The type of used car you buy for say 800,000k cannot be gotten 1.5M new. Interest rates in UK is less than 1%. Almost 30% in Nigeria. Government make a lot of money from duties on used cars imports People are employed as car dealers, clearing agents, parts sellers and mechanics etc. Newly manufactured cars are getting frequent recalls these days. So people even prefare a car that has been used for like 2 years, instead of a brand new. The new cars assembled or made in Nigeria will definitely not meet upto standard abroad cos of Nigerias high operating costs. Making cars locally is very good. Instead of trying to force it like they are doing now, Government should create the environment, investors are smart, they want to make money they will come on their own. People prefare a new car to used car. They will buy new cars. |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by tsiriman(m): 8:41pm On Oct 17, 2014 |
October is halfway, where is the auto mortgage? |
Re: Fg To Launch Federal Auto Mortgage Scheme In October - Aganga by Nobody: 7:03am On Oct 18, 2014 |
Please stop using the word mortgage to describe an auto loan. Besides who wants to take a "death pledge" loan on a motor vehicle in Nigeria? |
(1) (Reply)
Taking Wheel Alignment For Granted / Have You Seen This Nigeria Police Keke? / Ewo..see Wetin President Trump Moto Fit Do!! Na Wa Oh!(pictures)
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 25 |