Gadget to put brakes on auto loan defaults
August 26, 2007
Aug 27, 2007 -- /prbuzz/ --The Middle East with a high ratio of cars per–household and increasing number of vehicles on the road is a fast growing automotive market. Large automotive companies across the globe introduce new models of passenger cars each year and customers in the region keep pace with the latest automotive technologies and designs.

High-consumption markets such as Saudi Arabia, present enormous and untapped opportunities for automotive manufacturers.

Saudi Arabia blessed with plentiful oil resources along with its strategic location in the Middle East is such a booming automotive market. The passenger car segment is the largest and the most important segment and contributes to around 73.3 percent of the total revenue in this market.

Saudi Arabia remains an import-driven automotive market where almost one-third of the vehicle imports are used ones and mainly comprise the Mercedes, Chevrolet Caprice, and jeep models. Reduction in the average income of Saudis has further inflated the demand for used cars. Major suppliers such as Nissan of Japan and Germany’s BMW are expecting a significant expansion in sales from 2007 onwards.
Such trends inevitably lead to a boom in the auto-loan industry and as such bring the problems associated with late re-payments and delinquent account management.
In a move that helps to address one of the biggest problems facing all auto dealers and finance companies, Dubai-based Sekurus International LLC, has announced that its SekurPay™ range of solutions are now available to automotive loan institutions throughout Saudi Arabia.

Sekurus International is currently engaged in negotiations with a number of established finance institutes for the securitization of automotive loan contracts worth $800 million. Additionally, "The growth opportunities for Sekurus International are significant,” said Basel Al Salah, CEO of Sekurus International. “Whilst we will execute the most feasible plans to launch our Products and Services on a global level, appointing a well financed and established Master Distributor such as Sequr ME in Saudi Arabia will certainly consolidate our strategy in the Global market and help us further our current growth".

Its partner Sequr ME is offering the SekurPay™ total solution to ensure timely collection of customer payments. The SekurPay™ payment Protection solution is used globally by lending institutions that provide automobile financing to individuals who have no credit history or sub-prime and/or are high credit risks.

"Together with our partner Sekurus International, we are providing a market-leading Payment Protection and fleet management solutions that is supported by a team of professionals dedicated to ensuring our solutions meet the exacting needs of our customer base" commented Sequr ME Director Sinan Al Saady.

Installed inside the vehicle, SekurPay™ is a device that tracks payments with or without telematics technology and prevents a vehicle from starting if a customer's scheduled payment is not made on time. "We are in the process of expanding our international distribution network as more and more financial institutions around the globe realise the bottom-line benefits of the SekurPay™ solutionas a credit enhancement tool," said Basel Al Salah, CEO of Sekurus International the manufacturers and suppliers of the SekurPay™ range.

"This latest move represents an exciting new opportunity for us, and we look forward to providing our system to organisations throughout Saudi Arabia and the Middle East where we have based our solution development and international distribution head quarters out of Dubai." Currently the SekurPay™ devices being used by vehicle loan financers throughout world assure payments on more than $2.6 billion of auto loans. As a result, financial institutions and auto dealers have reported significant decreases in late payments and repossessions. In many instances, delinquency and repossession rates have dramatically dropped to levels lower than three per cent, as compared to previous American industry averages that range between 20-30 per cent

For more information, please visit www.sekurusinternational.com
About the Press Release
SekurPay™ is a device that tracks payments with or without telematics technology and prevents a vehicle from starting if a customer's scheduled payment is not made on time.


 
< Prev   Next >