Current situation: Loans for the acquisition of new and / or used vehicles granted by banks are growing at a rate of 22% per year with a delinquency rate that remains below 0.85% (according to information from ASBANC) and imports of new and / or used vehicles is growing at a rate of 81% (according to information from the Association of Automotive Representatives of Peru-ARAPER) while conversions from gasoline to NGV cars grow at a rate of more than 100% annually, these figures allow us to visualize the enormous potential for banks to be able to venture into vehicle loans for conversion to CNG since COFIDE currently supports and regulates financing for the conversion of vehicles to CNG to banks and private companies through its COFIGAS-TAXI Program,The results obtained from the 12 financial institutions that grant the conversion credits, the 41,000 vehicles converted to CNG, the 113 CNG conversion workshops and the 45 CNG service stations confirm the enormous economic benefits they are obtaining from the activity in this sector.
Requirements to process a vehicle credit for conversion to NGV: The requirements vary according to the use of the vehicle:
a) For taxi service, the requirements are: The owner of the vehicle must be between 23 and 69 years old; The vehicle must register a maximum age of 15 years on the ownership card, must have a valid SOAT Certificate, be registered in the SAT, in the SETAME (optional, but with the SETAME the beneficiaries enjoy a lower Annual Effective Rate-TEA), have a negative vehicle lien certificate;and to request the credit, it is necessary that you first review the vehicle in any of the 113 available workshops and that they recommend the type of equipment suitable for your vehicle and that they also provide you with a proforma of the conversion cost to go with this proforma and the other requirements mentioned to any of the financial entities so that they evaluate their vehicle credit for the conversion of the vehicle to NGV and thus be able to enjoy the benefits of natural gas.
b) For private use, in addition to the requirements for taxi drivers, vehicle owners must have a minimum monthly income of S /. 500.00 (Income from spouse is accepted), have a minimum work continuity of one year and, most importantly, have a good qualification in the credit bureaus of the financial system.
NGV conversion process; 5 steps can be identified:
a) Vehicle review, in the workshops to evaluate the operation and gas emission of the vehicle and thus issue a conversion proforma (the workshops serve as a link between the client and the financial entity to recommend which entity they should choose).
b) Documentary evaluation of the documents requested by the financial institution: DNI, ownership card, SOAT, SAT, SETAME (optional), receipt of water and / or electricity and the proforma of vehicle conversion to NGV.
c) Credit evaluation, the owner's ability to pay and the debts in the financial system. The approval of the loan takes between 3 to 5 business days, after the approval of the loan, a Credit-Conversion of Vehicles to NGV Agreement is signed between the financial entity and the beneficiary and it is communicated to the workshop to proceed with the conversion.
d) Vehicle conversion to NGV, after credit approval the financial institution issues a work order to the workshops so that they can proceed with the conversion of the vehicle to NGV.
e) Conversion certification: The certifying entity verifies the correct conversion of the vehicle and that authorized equipment has been used, after its approval, the certifying entity places a chip on the converted vehicle that contains information on the vehicle, equipment used and the workshop Of conversation.
Peruvian Automotive Park (In vehicle units)
Source: MTC, Hydrocarbon Reference Plan: 2007-2016 and CPGNV.
Preparation: Own
Method of payment of the conversion financing: Through the load pay system that is incorporated in the chip installed by the certifying entity, the percentage of collection of credit financing is set, which for vehicles that provide taxi service is 60 % and for private use vehicles is 145%, this percentage is applied in each gas refill and serves to amortize the credits granted. For example, if a taxi driver requests a NGV sol at a NGV station, 60 cents go to pay for the conversion financing (the amounts charged will be computed as effected, once the administrator of the NGV Cargo Control System deposits the corresponding amount in the account of the financial entity that granted the credit) and 40 cents is net purchase of fuel.While for private use vehicles for each S /. 2.45 for the purchase of NGV, S / 1.45 is for the payment of the financing of the conversion and S /. 1 is net purchase of fuel.
I) The My Taxi Program
In the words of Álvaro Chirinos - Director of the Mi Taxi Program. The Mi Taxi Program offers the opportunity for those taxi drivers who work with rented vehicles to acquire one of their property and thereby benefit 80% of the taxi drivers in Lima and Callao, that is, more than two hundred thousand taxi drivers, who do not have own vehicle. The program also seeks to promote the conversion of traditional energy sources to the use of natural gas, since the vehicles offered by the program operate using this energy source. In this way, it will not only be possible to contribute to the change in the energy matrix but also to renew the automotive fleet.
Vehicle offered by the Program.
The program currently offers the following vehicle:
Ø Make of the vehicle: Chevrolet
Technical characteristics:
- Model: Corsa Chevy
- Net power: 90 HP / 6000 rpm
- Torque: 16.8Kgm / 2800 rpm
- Hydraulic steering
- Dry weight: 1,050 Kg.
- Engine: 1600 cc.
- Transmission: 5-speed mechanical
- Ventilated disc brakes
- Dual CNG / gasoline system
- 48 liter tank
Price $ 12,990.00
The Corsa Chevy has already been used in other countries with great success such as Argentina (300 thousand units), Brazil (60 thousand units), Chile (200 thousand units) among other countries in the region.
Requirements to access the My Taxi program:
It has the same requirements that are requested to be able to access a vehicle credit for conversion to NGV, additionally it requests:
a) Be accredited as a taxi driver through the operation certificate of SETAME (Metropolitan Taxi Service) or SETACA (Taxi Service of Callao)
b) Letter proving that you belong to an association of taxi drivers
c) Sketch of the location of your address (owner and / or guarantee).
Financing method:
After meeting the requirements, the beneficiary must pay an initial payment of $ 2,990 (the total cost of a vehicle is $ 12,990.00) and the difference will be paid each time the taxi driver loads the vehicle with natural hydrocarbon. That is to say, every time the taxi driver comes to recharge his vehicle, a chip placed during the vehicle conversion will allow to distribute the amount thrown between the fuel and the daily fee of 33 that the taxi driver must pay. If for any reason the taxi driver does not cover this fee, he must pay the difference to the entity that granted him the loan. It is important to note that the taxi driver must travel a minimum of 200 kilometers a day for the system to be viable, given that the maximum financing period established for the payment of the unit is 60 months. However,It is important to highlight that the majority of taxi drivers travel more than 200 kilometers a day, in some cases reaching up to 300 kilometers, so that their quota of 33 soles per day will be considerably reduced.
The financial entities that grant the necessary funds for the program are the Municipality of Lima through the Municipal Credit Fund, the Development Finance Corporation (Cofide).
Benefits offered by the Program.
Saving:
A taxi driver currently has to pay around 50 soles to rent a car every day, on average he spends 60 soles on fuel and 40 goes to his pocket. In this way, in a month, said taxi driver would obtain at least an income of S /. 1,200 (according to studies by Autofondo SAC). But thanks to the My Taxi program, the taxi driver would stop paying the 50 soles for rent, and suppose he continues to spend 60 soles on fuel, 33 soles would go to pay for his car and 27 soles are the ones he spends when traveling at least the 200 kilometers a day.
In this way, if you add the 40 soles of daily profit that you obtain and add the fifty soles that you had to pay for rent, the total amount that you would earn each day would be 90 soles, which would yield a profit of s / 2,700 a month.
Schedule my taxi
Source: My Taxi Program
Own elaboration
II) Junk Bonus
The Scrap Metal Bond is part of the Temporary Regime for the Renewal of diesel vehicles, which was created by Supreme Decree No. 213-2007-EF., Said decree is intended to promote the change of the energy matrix from diesel to NGV. In other words, the bond encourages diesel car owners to deliver their vehicles to centers authorized by the Ministry of Transport and Communications (MTC) to acquire others that run on natural gas.
The owner of a vehicle that uses diesel 2 that is more than 10 years old as fuel, will be able to exchange it in the dealerships given by the MTC for a new car, gas station, which will be converted to natural gas.
The dealer will receive the old vehicle and will give you a voucher in return, which will be two thousand dollars plus the market price of the vehicle. The owner who receives the voucher will have a period of 12 months to buy a new vehicle that runs on natural gas and that maintains the manufacturer's warranty.
The financing of the balance payable by the vehicle will be through private financial entities.
Requirements to access the Scrap Bonus Program
a) Be natural or legal persons who prove to be the owners of a vehicle that uses diesel fuel.
b) Natural or legal persons who have obtained the Junk Certificate issued by a company authorized by the Ministry of Transport and Communications (MTC)
c) Natural and legal persons who have acquired a new spark-ignited vehicle of up to 1600 cubic centimeters, which has been converted to be used also as natural gas.
Junk Bonus Program
Source: MTC
Own elaboration
III) Imported vehicles with Dual system (NGV-Gasolines)
The Chinese company Lifan Motors, one of the most important Chinese Holdings, has brought to Peru the first original dual vehicle (NGV-Gasoline) from the factory at affordable prices for the majority of Peruvians thanks to a strategic alliance signed with the Alto Andes group.
The only model for sale at the moment is the 520NV which has three versions: 50 1.6 LX, 520 1.6 EXS and 520 1.3EX whose prices are $ 13,900, $ 13,690 and $ 13,290 respectively.
The most important technical characteristics of these cars are:
Ø Vehicle Make: Lifan
Technical characteristics:
- 90 HP / 6,000 rpm
- Torque 11.5 / 4800.
- Hydraulic steering
- Mechanical transmission 5 changes
- Front disc brakes
- Dual CNG / gasoline system
- 65 liter tank.
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