Automobile – In Algeria, the automobile financing landscape, particularly Fiat cars, is about to experience a decisive turning point, thanks to the financial establishment of Al Salam Bank. Dzair Daily reveals the details for you, this Tuesday, November 7, 2023.
In an economy where mobility is a key driver of development, Al-Salam Bank has announced a major initiative. This could revolutionize the automobile market in Algeria. According to Nasser Haider, Al-Salam Bank is used to finance vehicles for citizens, but with the introduction of new cars manufactured in Algeria like the Fiat, the bank’s financing could reach 80%.
The distinction is clear in today’s market: there are imported cars, for which dealers have obtained import licenses. And there are locally made cars. In accordance with the Consumer Finance Act, the bank cannot offer consumer finance for imported vehicles. These can only be financed for traders and professionals. In contrast, consumer financing is available for locally assembled vehicles.
However, local manufacturing facilities are currently at a standstill. Nevertheless, the Fiat factory is ready to start assembling and marketing local vehicles next year. With this in mind, Al Salam Bank has already submitted a request and has started communications with Fiat. This is to buy and finance a stock of cars following its usual financial model, which consists of buying a stock of vehicles and then selling them.
Acquiring a Fiat in Algeria becomes easier with loans from Al-Salam Bank
The bank’s CEO emphasizes that financing capacity is linked to the income of the citizen and his family. This determines their ability to benefit from financing and the type of vehicles accessible. The bank is ready to finance up to 80% of the cost of a vehicle, with the customer paying 20% of the value and repaying the rest over a five-year period. And this is provided that the client’s income is 40,000 dinars or more.
For professionals such as traders, craftsmen, pharmacists, doctors, lawyers, bailiffs, and farmers, the bank assesses the company’s financial situation and cash flow to determine the amount of financing to grant. The formula used in these cases is that of rental with the option to purchase. While for individuals, it is a purchase on credit.
Nasser Haider also specifies that citizens can buy imported cars with their own money. Paying in full in cash, as these vehicles are not eligible for bank financing. This is according to statements by the same official made to the general media Ennahar.
