Kifal Auto, a Moroccan automotive technology firm, plans to participate in the used automobile sector’s dynamics. In the backdrop of a decline in new car sales in 2022, it is thus concentrating its offer by making it easier for Moroccan consumers to buy a used vehicle through payment in instalments.
The marketplace, which provides a used car buying and selling experience as well as vehicle certification from start to finish, is stepping up a notch by offering a variety of financing alternatives via various partnerships. Nizar Abdallaoui Maane, CEO and founder of Kifal Auto, claims that “from the start of the company, in October 2022, we have observed very substantial demand which demonstrates the need linked to the current scenario. We received approximately 4,000 funding requests on our platform in December alone. Need we remind you that the car market is not in the best of health?
According to the Association of Vehicle Importers in Morocco (AIVAM), new car sales are down 8% compared to 2021. A drop explained, in part, by breakdowns in the supply chain and an increase in selling prices, raising the cost of mobility and making the purchase of a used car more appealing than in the past. Given the market’s sluggishness, Kifal Auto now provides, in addition to cash purchases, which have typically dominated the segment, the option of purchasing a used vehicle with various financing options ranging from 12 to 84 months. This is accomplished through various methods such as unallocated consumer credit, used auto credit with a crossed out grey card, and even Murabaha with participatory banks.
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To do this, the firm has formed many partnerships with local financial players, allowing the user to deal with only one person while receiving multiple financing options based on his needs and the vehicle he aspires to obtain.
Kifal Auto takes pride in being the first player to provide a fully digital experience and the ability to complete all operations online, from simulation to credit validation, including document collection. The firm offers its partner BMCI as an example, with whom it would provide the client with the option of receiving their agreement in principle online in a matter of minutes. Once the file is done, the customer will be able to acquire credit and take ownership of his vehicle within 48 hours.
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It is worth noting that Kifal Auto allows consumers to receive finance for any vehicle, whether or not it is for sale on its own platform. “Any used vehicle is thus eligible for car credit, particularly those sold during person-to-person transactions, which account for more than 90% of transactions in Morocco,” we clarify with the startup. The strategic repositioning of Kifal Auto is a continuation of Autochek, the Nigerian startup that purchased the Moroccan company in May and whose major business is to connect buyers of used vehicles with finance institutions.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard