The introduction of single digit interest rate facility by Mack truck representative in Nigeria, Lanre Shittu Motors (LSM), has boosted the sale of Mack trucks in Nigeria, as the Group Executive Director, Mr. Taiwo Shittu has revealed that the scheme improved his company sales figure by about 100 per cent last year.

According to the Director, who spoke to journalists at their Oshodi-Apapa expressway office recently, The single digit finance has worked for us. We recorded over 100% increase in sales last year when compared to 2012, as we surpassed our expectations. He added that more and more transporters are embracing the scheme, but added that they are encouraging more people to key into the scheme.

Throwing more light on the scheme, the Chief Financial Officer, of the company, Mr. Paul Okunaiya, explained that financing solution for truck acquisition would allow customers access funding for the acquisition of brand new Mack trucks at single digit interest rate and  payment spread over a five year period. The rate is fixed throughout the payment period which would help projection as payments will not vary adverse with movement in interest.

According to him, the rate enjoyed may be as low as 5 percent but would not exceed 10 per cent per annum. The rate is based on the assessment of each company business and financial risk.

The finance scheme covers not just  the trucks but in addition, the trailers that would be required to run with the trucks as well as the Flat beds, tankers, buckets et al. All that is required to own your desired Mack Trucks and other accessories is just a down payment of 15% of the value of your desired purchase. No collateral, no bank guarantee, no hassles.

The Group Executive Director, further explained that his company which has been into the truck business for many years, has an appreciable number of new Mack trucks in stock as well as spare parts and technical expertise. We have enough trucks on ground which means that the customer does not need to wait a long time before collecting the truck he paid for.

He identified those who have keyed into the scheme to include operators in haulage and gas business, breweries, cement, consumables and all kinds of wet and dry cargo operators. The scheme kicked off about eight months ago and it has also increased our customer base, he revealed.

On why his company introduced the single digit interest rate scheme, he said our desire is to get the best for our customers, as we discovered that many banks were not adequately financing transporters businesses due to high interest rates.

The advantage you have with us is that we have the trucks on ground and those who buy now will avoid higher prices due to the increase in the import duty tariff and levy as a result of the new Federal Government auto policy.

He expressed satisfaction with the commitment of customers towards the scheme, explaining that the good thing is that none of our customers has defaulted so far in servicing the facilities for the acquisition of Mack trucks, and this has encouraged us to extend the scheme to the Yutong bus brand, also distributed by our company. It would be recalled that LSM had in November last year, unveiled a promo for its customers to procure Mack truck spare parts at 30 per cent discount, and the promo is still on-going.

Shittu further stated: we have come to discover that Nigerians are very credit worthy, and beyond that, the durability of the Mack trucks has contributed largely to ensure that the operators get returns for their investments which enables them to service the facility.  We are highly encouraged by our customers commitment to servicing the facility, and we believe the reason behind this is that the vehicles are performing and giving them value for their money.

Interestingly, he said, the scheme has been widely acknowledged as recently we received an award for this innovative contribution to the truck industry as Truck Company of the Year from the Nigerian Auto Journalists Award (NAJA) last year.

Meanwhile, the executive  director  disclosed that his company is in discussion with Mack Truck  on how to set up an assembly plant in Nigeria.  He noted  that in due time Mack will be producing trucks in Nigerian for the African market and the rest of the world.