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  • 2019/02/27
  • 3 min

Morocco: credit promotes the acquisition of cars

The Moroccan automotive market recorded close to 170,000 new registrations for 2018, an increase of more than 2% compared with 2017. Overall, the sale of second-hand vehicles has stabilised, with 450,000 transactions carried out per annum.
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“Over the past five years, registrations have increased under the combined effect of three factors: the rise in living standards, the pricing effort granted by manufacturers and the support from financing solutions. One can see a direct correlation between the increase in registrations and the rise in financing arrangements.”

Hmidi Reda Automotive market manager at Wafasalaf, the joint venture owned by Crédit Agricole Consumer Finance and Attijariwafa bank in Morocco

As a result, in order to support their expansion, the manufacturers have all established partnerships with financing companies.

In 2018, more than 50% of new purchases were therefore promoted by credit solutions.

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“Moroccans look for the best price and the best rate. Most of them still consider the car to be an investment, although new financing solutions for gaining their loyalty, such as the balloon loan* and lease with option to buy, are in the process of changing the situation, especially among young people.”

One can also see the emergence of a segment for electric and hybrid vehicles, in a market that is still 97% dominated by the diesel engine. The Government also envisages supporting the availability of clean vehicles through subsidies and a reduction in customs duties.

 

 

*Unlike leasing with option to buy, the balloon loan is a purchase plan with low monthly payments, in return for a high final payment (balloon).