Africa-Press – Cape verde. Businessman Rui Teixeira, of Multimarcas, said this Saturday that car loan terms in Cape Verde have become more accessible, with reduced interest rates and longer repayment terms.
According to the head of this sector, the reduction in such rates has facilitated families’ access to vehicle purchases.
Speaking to Inforpress, during the Automobile Exhibition and Sale held by Multimarcas in Praia, the company’s director praised a “significant change” in financial institutions’ attitudes toward car financing.
“Twenty years ago, it was difficult to obtain car loans. Today, banks are much more receptive, rates have dropped, and terms have been extended. Before, we had loans of three or five years, but now they go up to eight,” he said.
According to the same director, interest rates, which were previously around 10 to 12 percent, are now between 5.9% and 6.5%, which represents a considerable reduction and a stimulus for the market.
“These conditions allow more families to purchase their first car, which boosts the automotive sector and creates new business opportunities,” he added.
The businessman also noted that the increase in families’ combined purchasing power has contributed to the growth in demand, although he acknowledges that customs duties on combustion-engine vehicles remain high, which poses a challenge for the sector.
“Customs duties still weigh heavily on combustion-engine cars, but we try to offset this through partnerships with manufacturers to reduce the final price to the consumer,” he explained.
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