Get a car loan in Nigeria with these easy tips!

27/05/2019

You do not need to have all the money in the world to own a car. Save yourself the stress of jumping commercial buses by betting a car loan in Nigeria with these simple tips!

Are you tired of jumping Danfo AKA commercial buses? The wahala of doing that is just too much. Only people who are regular “customers” truly understand how it feels.

First, you do not work with your own time. You might leave your house very early for work, and spend an extra hour just waiting at the car park for your bus to get full. You can yell all you want, but those drivers are not moving an inch if their 18-seater bus does not have 18 passengers seated. Your work is your problem, not theirs. OYO (On Your own) is your case; every Mallam to his kettle. Can you really blame them? Everyone is trying to survive.

You need your own car.

That is not news. You have been aware of this for a long time. But the cost of cars always dissuades you from the idea. Cars are quite expensive; everyone knows that. If they were not, everyone would own one or two. But, you do not have to break a bank to own the car of your choice. There are easy ways to go about it, and securing a car loan is one of those ways. Granted, car loans are not very popular in Nigeria, but a good number of people who are privy to this information are already enjoying it. Here are 5 tips to get a car loan in Nigeria, provided by Naijacarnews.com!

1. Do not drag your loan shopping

Loan shopping is simply the process of looking out for the car loan option that is most suitable for you. You do not go with the very first loan package you see. There are several commercial banks in Nigeria. All of them are fiercely competing to offer the best service. Hence, their services differ.

coupe-car

Say goodbye to DANFO with your news sleek ride

While it is good to look around for the best option, you should not stall it for too long. This is because, car loan conditions change very often. A very good offer today might become stringent tomorrow especially if the bank sees that many people are opting for it. If you see a very good offer, grab it immediately.

2. Confirm your eligibility

Nigerians often complain that banks do not give loans. In the actual sense, many of them are not eligible for the loans. Banks give out loans on a daily basis but only to eligible people.

Financial institutions are in business to make profit. It is unrealistic for them to give car loans to everyone. One of the major requirements is the individual’s ability to pay back the loan. Giving them assurances with words that you will pack back does not cut it. They want to see evidence. This evidence includes your financial records. Someone with a steady income either as a salary earner or entrepreneur is more likely to get a car loan than someone without a steady income. Most banks check your financial records for the last six months. Other requirements include age, occupation, minimum salary, position at work, residential area etc.

Inquire about the bank’s car loan requirements and make sure that you are eligible even before you apply, so you do not waste your time.

>>> Another must-read article for you! Cheap cars in Nigeria? Here is what you need to know if you want one!

3. Peg the loan amount

Financial institutions offer different loan amounts depending on the car, age and financial capacity of the individual getting the loan. Although some banks are willing to offer 100% of the loan to enable you get the car, others may offer just a portion of the amount.

With the money being available, some people get carried away and request for a loan to get the most expensive cars. In that moment, they forget that it is not free money, and that they will have to pay it back in the near future. In the long run, they find themselves struggling to pay up. Unless you have a very solid source of income, it is advisable to go for a not-so expensive car when getting a car loan. That way, you can pay up the loan without putting yourself under unnecessary pressure.

Car loan lenders may charge some levies for processing the loan. You need to be prepared to make these payments, so you do not get overwhelmed. The charges differ in various institutions.

4. Check the interest rate

Financial institutions are all about making profit. In this case, their profit comes from the interest rate. Out of excitement of getting a car loan, there is the tendency to knot pay much attention to the interest rate. You really need to calm down and take a close look at the interest rate. Although you get to pay up in bits, if the interest rate is on the high side, you will be doing yourself a disservice.

SUV-car

An SUV like this is good on Nigerian roads

The whole idea of getting a car loan is to pay for it with little stress. If they are going to stress you with high interest rates, you are better off saving your money to buy the car in the future.

5. Weigh the repayment plan

After getting the loan, comes the repayment. Different banks have different repayment plans. Do not just accept a plan presented to you. Be sure that it is convenient for you in regard to your earnings. If you know that the plan will not work for you, say so upfront, and request for a more convenient plan. Failure to pay up often leads to problems, making you wish you never took the car loan in the first place.

>>> Visit Naijacarnews.com for more car buying advice.

    FEATURED ARTICLES

    Latest Buying Advice

    People have just commented on