TERMS AND CONDITIONS

Effective Date: November 29, 2025

1. Introduction

Welcome to Babu Motors Uganda (“Babu Motors”, “we”, “our”, “us”). These Terms and Conditions govern your use of:

• The Babu Motors website and mobile application
• The Drive-To-Own (DTO) program
• The Vehicle Pre-Payment / Security Deposit Top-Up services
• All digital features, tools, and customer portals offered by Babu Motors

By creating an account, making a payment, or using our services, you agree to these Terms.

2. Nature of Our Services (Important Legal Notice)

Babu Motors is a vehicle dealership and leasing company, NOT a bank, SACCO, microfinance institution, or deposit-taking entity.

Any money you pay to Babu Motors is strictly treated as:

• A security deposit for Drive-To-Own, OR
• A pre-payment toward the purchase price of a specific vehicle.

These payments:

• Are NOT savings accounts
• Do NOT earn interest
• Are NOT investment products
• Cannot be withdrawn freely like bank or mobile money balances

All funds are tied to your vehicle transaction only.

Babu Motors fully complies with Ugandan commercial and financial laws.

3. Why We Provide Digital Payment Services

We offer online and mobile payment options for customer safety, convenience, and transparency, especially for customers who travel long distances from areas such as Gulu, Lira, Arua, Mbarara, Mbale, Soroti, and others.

3.1 Customer Safety

Carrying UGX 2M, 5M, 10M or more in cash while traveling long distances can be dangerous. To protect customers:

• Payments can be made digitally
• All payments go directly to Babu Motors accounts
• Every payment produces a secure, traceable digital receipt
• No physical cash needs to be transported

This significantly reduces theft and security risks.

3.2 Convenience for Remote Customers

Customers can now:

• Register online
• Choose a preferred vehicle
• Pay from their location
• Build their security deposit gradually
• Make pre-payments toward a future vehicle purchase
• Track all payments from their app or online profile

No need to travel repeatedly to Kampala.

3.3 Transparency and Record-Keeping

All digital payments ensure:

• Clear documentation
• Automatic receipts
• Proper allocation of funds
• Traceability for both customer and company
• Complete removal of unrecorded cash transactions

3.4 Business Planning & Vehicle Shipping

Pre-payments help Babu Motors:

• Understand which vehicles customers have booked
• Ship cars based on real demand
• Plan stock and cash flow safely
• Avoid unnecessary blind purchases

Example: If a customer deposits UGX 10M on a Toyota Wish worth UGX 35M, we prioritize shipping that specific unit.

4. Eligibility

To use Babu Motors digital services, you must:

• Be at least 18 years old
• Provide accurate identification details
• Have the capacity to enter into a binding contract
• Hold a valid driving permit for DTO programs

5. Account Registration

You must:

• Provide accurate, truthful information
• Keep your login details secure
• Notify us immediately of unauthorized access

We may suspend or close accounts for misuse or fraudulent behavior.

6. Vehicle Pre-Payment & Security Deposit Top-Up

6.1 Nature of Funds

Payments made to Babu Motors are:

• Pre-payments toward a selected vehicle, OR
• Top-ups toward a DTO security deposit

They are NOT:

• Savings
• Investments
• Deposit accounts
• Withdrawable funds

6.2 Digital Tracking

Your digital profile may show:

• Total amount paid
• Remaining balance
• Estimated progress toward your target amount

These numbers may adjust due to taxes, stock changes, or market conditions.

6.3 Refunds and Cancellations

Refunds (if applicable) follow your signed agreement or MOU and may include:

• Administrative charges
• Non-refundable booking fees
• Adjustments based on costs already incurred

7. Drive-To-Own (DTO) Program

7.1 Security Deposit

Every DTO vehicle requires a security deposit, which you may top-up gradually using our digital services.

7.2 Monthly/Daily Payments

You must make payments as agreed in your contract. Late or missed payments may result in penalties or repossession of the vehicle.

7.3 Vehicle Allocation

Allocation depends on:

• Completion of your security deposit
• Approval of your application
• Vehicle availability

A similar car may be allocated if the exact requested unit becomes unavailable.

8. GPS Tracking & Security

All DTO vehicles include GPS tracking for:

• Asset protection
• Theft prevention
• Recovery
• Compliance with the DTO agreement

Tampering with the GPS device is strictly prohibited and may result in termination and recovery of the vehicle.

9. Vehicle Maintenance & Use

Customers agree to:

• Service the vehicle regularly
• Use qualified mechanics
• Drive responsibly
• Avoid illegal activities
• Not remove the vehicle from Uganda without permission (if restricted in the agreement)

10. Insurance

Customers must ensure the vehicle has valid insurance as required by Ugandan law and their agreement.

11. Communication

By using our services, you agree to receive communication from Babu Motors through:

• SMS
• WhatsApp
• Phone calls
• Email
• In-app notifications

All digital receipts and communications are considered legally valid.

12. Prohibited Use

Customers may NOT:

• Use the platform for fraud
• Misrepresent identity
• Interfere with our digital systems
• Attempt unauthorized account access
• Use false or stolen documents

13. Limitation of Liability

Babu Motors is not liable for:

• Losses due to misuse of the vehicle
• Customer negligence
• Indirect damages or lost business opportunities
• Market changes affecting vehicle prices

Our liability is limited as permitted by Ugandan law.

14. Changes to These Terms

We may update these Terms periodically. Major changes will be communicated through digital channels. Continued use of our services confirms your acceptance of updated Terms.

15. Governing Law

These Terms are governed by the laws of the Republic of Uganda. Disputes will be handled through negotiation, mediation (where applicable), or courts of competent jurisdiction.

16. Contact Information

Babu Motors Uganda

• Phone & WhatsApp (Primary): +256707412559
• Email: legal@babumotors.co.ug
• Location: Kampala, Uganda

17. Acceptance

By using our website, app, or any Babu Motors service, you confirm that you have read, understood, and agreed to these Terms and Conditions.

Last updated: November 29, 2025