The Valuation Secret
In the world of vehicle financing, the method used to determine your car's value is the most important factor in your loan limit. Most traditional lenders use "Forced Sale Value" (FSV)—a low-ball figure representing what a car would fetch in a quick, desperate sale. At Together As One, we use Market Value.
The Financial Impact on Your Wallet
Let's look at the numbers. If a Toyota Fielder has a true market worth of KSh 1.8 Million:
- Forced Sale Value approach: The lender might value it at KSh 1.3 Million. Your 70% loan would only be KSh 910,000.
- Market Value approach (Our Way): We value it at KSh 1.8 Million. Your 70% loan becomes KSh 1.26 Million.
That is an extra KSh 350,000 in your hands to boost your business or handle your family's needs!
Fairness in Hire Purchase
For our Hire Purchase clients, the 50% deposit is also calculated on this fair Market Value. This ensures that the equity you are building in the vehicle is real and reflective of what you could actually sell the car for on the open market once your 18-month term is complete.
The Role of Our Certified Valuers
Our valuation isn't just about price; it is about Institutional Security. We assess the mechanical condition, body integrity, and document authenticity. This protects you from buying a "lemon" and allows us to maintain our low 2% interest rates by minimizing risk.