COMMMERCIAL banks are providing more loans for vehicle purchases, leading to a jump in car sales this year, according to dealers.
While the improved domestic economy and effects of the March disasters in Japan on its competitors had improved sales figures of Great Wall vehicles, increased availability of car loans was the largest driver of the increase, said Peang Mann, Chairman and CEO at importer Worldwide Garage.
“Our customers are enjoying buying our cars by paying monthly installments via the banks – this helps us grow a lot,” he said.
Worldwide Garage currently workers with ACLEDA, ABA, and Campu banks to make car loans available.
Name recognition has proven to be the greatest hurdle for its Great Wall vehicles, though the company targets selling 150 units this year, he said.
Narita Motorcare Cambodia, importer of Nissan vehicles, has seen an increase of about 5 percent in sales, despite supply shortages caused by the Japanese disasters earlier this year, said Managing Director Long Narith.
“We had more demand in the first quarter, but we had problems meeting the demand due to the earthquake,” he said.
However, commercial bank lending to car customers was increasing the industry’s sales, he said.
ACLEDA Bank Executive Vice President So Phonnary said the bank had cooperated with car dealers to offer loans for two years, extending US$4 million to about 300 customers.
Customers that can provide collateral can receive a loan for 80 percent of the vehicle’s value, while those without can receive up to 40 percent, provided they can display their earnings, she said.
“We’ve been quite successful since we launched the service,” she said. “We don’t require customers to purchase from certain vehicle dealers. We rely on their choices, and facilitate loans to those who want to buy.”
RM Asia Company, which imports Ford vehicles, has seen a 20 percent rise in sales during the first half of the year compared to the period in 2010, said its General Manager Seng Voeung.
“We thank the commercial banks’ provision of car loans for the growth, as it gives customers more opportunity to own a new car,” he said.
RM Asia’s Devco Company can provide financing for up to 3 years, he said.
“[Devco] also have strict requirements as the banks do, but it is quite easier,” he said, adding Ford projected its sales were on pace for about a 20 percent predicted rise this year.
Ministry of Commerce Camcontrol statistics obtained in June showed 7,700 vehicles were imported as of April 30, 2011, a decline from the 8,350 imported in the same period last year.
However, revenues generated from sales reached $73.5 million during the first four months of 2011, the figures showed.