Automotive financing: when diversity rhymes with customer experience

Automotive financing: when diversity rhymes with customer experience
Automotive financing: when diversity rhymes with customer experience

The automobile financing market in Morocco is experiencing captivating developments, driven by a growing diversity of innovative players and adapted solutions. During a roundtable organized by the Horizon Press Group, experts shared their perspectives on this dynamic.

The automobile financing market in Morocco is experiencing interesting dynamics, with increasingly innovative players and varied solutions to meet consumer needs. At the panel discussion hosted by Horizon Press Group, industry experts shared their perspectives on the evolution of auto financing, current trends and future challenges.

During this meeting, Driss Fedoul, chairman of the board of directors of Wafasalaf, underlined the importance of automobile financing in the consumer credit market in Morocco. In 2023, the market reached an outstanding level of 30 billion dirhams, with average annual growth of 10% over the last five years.

This growth is largely due to rising vehicle prices, making financing essential for many consumers. “One in two vehicles sold is financed on credit,” he said, highlighting the strong dependence of the Moroccan automobile market on credit.

Diversified offers to meet all needs
One of the strong points discussed by the speakers is the diversification of financing offers to adapt to the varied needs of customers. Cédric Veau, director of Bamotors, explained that their model is based on partnerships with several financial organizations.

“We have several financial partners to be able to meet all of the market’s needs. Because the customers who come to see us have needs that are not necessarily all the same,” he declared.

This approach makes it possible to offer solutions adapted to different types of customers, from individuals to businesses, including liberal professions.

The impact of financing models on customer experience
Financing models, such as captive, white label and traditional credit, play a crucial role in the customer experience.

According to Adil Bennani, Managing Director of Auto Nejma, each model presents its own advantages and challenges. Captives, for example, allow builders to maintain full control over the financing process, which can improve the customer experience by providing integrated and consistent offerings.

“Having both the price of the credit and that of the car on hand allows you to make competitive offers,” he noted.

On the other hand, white labels offer increased flexibility in terms of financial partnerships, allowing manufacturers to benefit from the expertise of financial organizations while retaining their own branding.

This approach can also promote innovation in terms of financial products, as mentioned by Allal Benjelloun, general director of the Centrale Automobile Cherifienne (CAC). “A white label agreement frees imaginations. You can imagine everything because it’s open,” he added.

Future prospects: towards increased adoption of new formulas
One of the most discussed topics during the round table was the evolution of financing formulas, in particular balloon credit and long-term rental (LLD). These formulas, still little developed in Morocco, offer significant advantages in terms of flexibility and cost management for consumers.

“The balloon loan allows you to access the automobile without having a huge down payment and provided you want to keep your car for five to seven years,” explained Allal Benjelloun.

Cédric Veau also stressed that these new formulas could facilitate the resale of vehicles and support the second-hand market. “Financing is also a way of generating used vehicles and continuing the economic cycle of new vehicles in another circuit,” he said.

Mehdi Idrissi / ECO Inspirations

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