Financing firm offers drive now, pay later scheme

MANILA, Philippines – Car lovers who would want their own car but do not have enough money to even settle a down payment will have the chance to drive around town once a financial firm launches a company that will allow consumers to own a car initially at no cost.

Financing firm Esquire Financing Inc. is planning to establish a separate firm tentatively called “Buy-a-Car” this month, which would allow its clients to own a car without the necessity of paying a down payment.

“We are about to launch within the month. It is called Buy-a-Car and we will be offering old cars to our clients and they do not need to pay a down payment. Aside from that, we can also offer installments of up to 36 months to pay,” Esquire president and chief executive officer Rajan Uttamchandani told reporters in a luncheon yesterday.

According to its website, Esquire was established in April 2011 and has over 6,000 clients and investors around the globe, which Uttamchandani said they are servicing by extending credit and assisting them on “how they can improve their businesses.”

Around 2,000 of the total clients were from the Philippines, he said, pointing out that its loan portfolio in the country as of Sept. 1 revolved around P5 billion, of which P1.5 billion were extended to small and medium enterprises (SMEs).

These are the same people they would want to reach out under their new firm, he added.

“We will be offering these to our existing clients. So far, we have an inventory of 100 vehicles. These are foreclosed cars which we bought from the banks,” Uttamchandani explained.

New cars may also be offered later on, he said, on which the firm will allow the “amortization of down payment.” Non-clients may also be allowed to purchase cars in the future.

“What we will do is say, we can offer a car for P750,000 but with zero outright down payment already. Down payment will then be amortized,” the Esquire chief said.

Uttamchandani said the new firm will use Esquire’s selection process in its business to make sure that “we will be selective on who we sell cars to.”

He went on then to detail Esquire’s focus on SMEs with most of its 2,000 borrowers involved the industry. SMEs are businesses such as sari-sari stores, mini-groceries that have no less than P100,000 in capital.

“There is opportunity in the SME market. We believe we are swinging from being dependent to OFW (overseas Filipino workers) remittances into making our own businesses,” Uttamchandani stressed.