Capital Equipment News February 2019

FINANCE

In 2018, Scania Finance & Insurance Southern and East Africa had a 64% penetration rate on new truck sales, which means almost two out of three new Scania trucks sold were financed by Scania Finance.

Widening the scope

A 64% penetration rate on new Scania truck sales in 2018 and a portfolio that has grown year-on-year for the past seven years to reach a staggering R5,3-billion last year, is testimony to Scania Finance’s constant growth trajectory. Currently dominated by finance and operating leases, plans are underway to further widen the scope of the offering to provide a total solution to customers in southern and East Africa, writes Munesu Shoko .

T he captive financing trend is seeing portfolio growth, driven by improved demand for their parents’ products, but more importantly due to their understanding of their customers’ businesses and needs more than the rival traditional finance institutions. Portfolio growth and credit quality gains massive growth on a global scale. Finance subsidiaries of major global original equipment manufacturers (captives) have continued to report very strong

are likely to increase as captive financiers continue to widen their scope to offer total financing solutions within their stables. It is also worthwhile to note that the offering of finance products by OEMs has evolved from a pure sales support function to the pursuit of optimisation of customer lifetime value. In recent years, mature captive units have increasingly shifted the focus away from pure sales support by broadening the product offering to end-to-end solutions with the

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