HARARE - Liquidity has been singled out as the major factor that is affecting the motor vehicle industry and in turn having a negative impact on the industry as a whole.This was pointed out by Peter Makuna, the head of Group Communications Manager at Croco Holdings.
“The banking sector has been facing a myriad of challenges and do not have long term deposits such that it becomes difficult for the bank to give out loans to potential buyers of vehicles and other services,” said Makuna.
The banks are not able to loan money as the deposits they are receiving are short term and not able to sustain the demand of loans. This in turn makes it difficult for people to secure loans for buying vehicles. This is not only affecting the motor vehicle industry but other sectors as well.
The Group Communication Manager said that they were, however, happy with some of their customers who had managed to sacrifice and make purchases from them despite the challenges that are currently being faced.
Croco is now accepting 30 per cent deposit on all vehicles and the rest is payable over a six month period which eases the burden on the buyer.
The Croco team resolved to be more flexible in their terms in order to attract more customers. On the importation of vehicles from foreign countries they said the
government had chipped in and introduced duties so that they would be some form of competition.
They also said that the 21 years that they have been in business for has taught them a number of lessons about customer care and so much more about the motorcar industry.
Post published in: Economy