Economy, Auto

SAIPA Rolls Out Car Swap Scheme

SAIPA Rolls Out Car Swap Scheme SAIPA Rolls Out Car Swap Scheme

Iran's second largest vehicle manufacturer, SAIPA, has announced a plan that will allow owners of SAIPA cars to swap their secondhand cars and clunkers with newer models, said the company's sales deputy.

According to Reza Taqizadeh, the company will purchase the secondhand cars and inspect their technical and security aspects. Once the faults are eradicated, the vehicles will be resold with a yearlong guaranty, ISNA quoted him as saying.  The official noted that 100 sales representatives have been trained for executing this plan and SAIPA will be monitoring the quality inspection and guaranty scheme.  The company offers loans with an interest rate of 21%, with the loan ceiling corresponding to half the total worth of the car.

"All SAIPA vehicles are eligible to enter this scheme," Taqizadeh explained.

"Cars, which are under five years, will receive a yearlong guaranty However, there will be limitations for the guaranty issued to cars older than five years."   

The conditions differ slightly for swapping clunkers with new cars. Owners of clunkers will be receiving loans with a ceiling of 160 million rials ($4,700 at the free market rate). The interest rate of the loan is 19.5% and customers will have to repay the loan in maximum 48 months.

"To start, the company will be selling the following models: Tiba, Tiba 2 (hatchback), Pride 111, Pride 131, Pride truck and a range of Nissan trucks. In the second phase of the program, sales representatives that have had an acceptable performance in the first step will expand the range of products to include L90 (Dacia-Logan), Pars Tondar, Sandero and Brilliance," he explained.

Passenger cars over 20 and pickup trucks over 15 years are eligible to take part in the scheme. Customers will receive the new cars 30 days after their forms and documents have been completed.