LEADING financial institutions National Commercial Bank (NCB) and Scotiabank are jostling for the major share of the tight auto loan market, both significantly chopping interest rates and wooing auto dealers over the past few months.

NCB, this week, officially announced a 16.95 per cent rate for both new and used vehicles, effective March 1.

“This further reduction to 16.95 per cent for new and used vehicles up to seven years old will allow a wider range of consumers to access more affordable financing to meet their needs,” argues general manager, retail banking, Audrey Tugwell-Henry.

NCB, in a recent press release, said that it was the first commercial bank to lower its rates on motor vehicles loans from 19.75 per cent earlier this year.

The bank dropped its rate then to 16.95 per cent, but only for new and used vehicles up to two years old. Older vehicles attracted rates ranging from 17.25 per cent to 17.95 per cent.

Late last month Scotiabank unveiled an encouraging 15.95 per cent interest rate in collaboration with the Jamaica Used Car Dealers Association (JUCDA) that the bank said would will hold until the end of March.

After March, the understanding is that Scotiabank auto loan rates will move to 16.95 per cent, effective until October.

NCB did not give a review date for its 16.95 per cent loan.

Both banks are, however, celebrating the endorsement of auto dealerships and tossing incentives at the dealers and consumers alike.

“NCB works with over 50 new and used dealers across the island and provides up to 95 per cent financing for the purchase of vehicles through a special Auto Dealer Referral programme,” Tugwell-Henry said.

NCB says it has also extended its maximum repayment period on used vehicles to six years and new vehicles to seven years, which it contends is currently the longest re-payment period in the market.

“Consumers are very mindful of their monthly payment amount and with a lower interest rate and a longer repayment period, we are responding to these needs as we continue to work at ensuring we have the best automobile loan product in the market,” Tugwell Henry stated.

Scotia, while offering 100 per cent financing on the 15.95 per cent interest rate loan, has also added extra sweeteners to consumers, at least for March.

Thrown in are perks where the bank’s customers will get $10,000 towards the purchase of gasoline, 100 per cent financing on a GPS vehicle tracking system and the offer of a credit card with a minimum of $100,000. JUCDA member dealers will receive $5,000 for each loan referral made to Scotiabank.