However, this was a challenge that BAW set out to address from day one. "We wanted to come up with an innovative way of getting well priced finance to a broader base of taxi customers, and we believe that we have gone some way to achieve this," Jessup says.
"We have established a factory reconditioning facility so, if a bank does repossess a taxi, that repossession can be converted into a valuable asset. We will respray the taxi, put in new seats, install a new drivetrain - do whatever is necessary to get that vehicle to a factory level of reconditioning."
There is a huge market for properly reconditioned taxis. "These will be re-marketed via our dealer network and refinanced by participating banks. Therefore this is a very creative way of offsetting a lot of the banks' risk in terms of financing taxis," Jessup concludes.
BAW, with the invaluable assistance of the IDC, has already signed a finance agreement with ABSA. Two of the other big four major banks are expected to sign agreements shortly.
