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Used car loans on increase


Used car loans on increase

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THE CURRENT ECONOMIC CLIMATE has constrained the pockets of many Barbadians, but chief executive officer of Signia Financial Group, Paul Ashby says it has not stopped people from borrowing money.

In fact, as people descended on Signia’s Haggatt Hall, St Michael used car lot recently for the launch of their One Week Special Offer programme, he was sure this trend would continue.

He told BARBADOS BUSINESS AUTHORITY Barbadians were still very conservative spenders and that while many were cash-strapped they still needed transportation. In this vein, the lending agency had realised that customers adjusted their wants to ensure they did not supercede their financial capabilities.

So whereas an average size loan was traditionally in the range of $50 000 to $60,000, in the present environment people are looking for cheaper vehicles in the range of $15 000 to $20 000.

“We do sell new vehicles but the majority of people are interested in the used vehicles. If you look on the road there are still lots of vehicles so they still want transportation . . . which is another reason we are doing this sale because a lot of these vehicles have a lower value and it would appeal to a different demographic which is out there now, where people actually want vehicles that are affordable,” he said.

As it pertained to loan repayments, Ashby was not too concerned with the delinquency rate. He acknowledged that it has slightly increased over time as people experienced difficulties. However, this did not stop them from booking loans.

He noted: “There are still a lot of people who are coming through the doors for loans for vehicles, to travel, and they have other personal needs for loans, home improvement especially at this time of the year where it is hurricane season people want to secure their homes a little bit better.” (SDB Media)