Have you struggled to enter a bus and end up missing an important meeting because of delays? Have you looked at your Uber receipts for the month and cursed under your breath because of the money you have spent?
From jumping bus to high Uber prices and finally having your suit torn while trying to break a fight between the conductor and a passenger. You are fed up with the whole Naija drama and decide to get yourself a vehicle. Your bank alert comes in and you realize your bank balance is too low to buy your dream car. You have to enter bus again the next Monday to work.
On the flip side, you decide to start saving up for a car. You use Uber because you don tire for conductor wahala. By the end of the month you realize Uber has eaten a chunck of the savings.
Truth is, though you can buy used cars at a fraction of their retail cost at the auctions, cars are not free of charge.
Saving your monthly income gradually to buy one still means that you still have to endure the stress of commuting or struggling for a bus after a hard day’s work for a little while longer.
Being a car owner brings comfort and saves your wardrobe, it makes navigation easier and you are happier. You need to plan, research and budget when you decide to buy your dream car. Research prices, car brands, models, financing options, and if they fit into your estimated budget.
Car Financing: Car loan
The most popular way to get financing for your car is to take out a car loan either from a financial institution, auto-financing company, or an individual. A car loan is popular today and a lot of people became car owners by getting a loan.
There are different auto finance companies in Nigeria that provide financing to buy a car, some are affiliated with banks while some are independent.
Some institutions offering auto loan include but not limited to the following are Access Bank Group, Polaris Bank, Credit Nigeria, Vehicle and Asset Finance – Stanbic IBTC, Rosabon, Financial Service and lots more.
Before applying for a loan, you need to research the different financial institutions and pick the best one for you.
You are one step closer to not using bus or Uber again because you have chosen to take out a car loan to aid in financing your dream car. The excitement of being a car owner is thrilling, even jumping bus for a few days seems more bearable.
Remember that deciding to take out a car loan, means you will be required to pay back the loan. The loan must be paid within a stipulated time frame with penalties if you default. You will need a well-structured plan to help you pay back the loan and manage your finances/other expenses at the same time. Remember, after buying the car, there will be car maintenance expenses to take care of as well.
Some auto financial institutions give out loans to salary earners and take out percentages monthly as the salaries come in. A payback plan must be put into consideration when researching the best institution to apply for your loan. This is to avoid loan default or vehicle repossession and subsequent loss of all your repayments.
Car loan: Pros & Cons
Pro: You have immediate access to the required finances to purchase your car. Once the loan is approved, the money is deposited into your account. You can pay for your car and begin to drive it immediately forgetting your bus jumping days.
Con: You will have to pay back the car loan, with interest and other fees required by the auto financing company. The fees can be outrageous and sometimes it may be difficult to pay back. When taking out a loan, you need to compare the interest payback rates of the different companies. You have to set up a payback plan for easy payback.
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Pro: As long as you pay back the loan on time, car loans allow you to build a credit history with the auto finance company. This is beneficial for you in the future if you require to take out another loan.
Con: Once you default on the agreed payment time, more fees will be added to the already existing fees. This skyrockets the amount you are required to pay back.
Owning a car makes life easy, commuting comfortable and convenient – buying a car needs equal planning, research, and comparing options. A car loan is an option to buy your car with no payment. Be sure to read the terms and conditions of any credit/loan facility you want to apply for. Also ask all questions you may have to get proper clarity before applying.
Why wait 3 years or more to save up on your income to be able to afford a car? You can get the car right away and pay back over the same period while driving your dream car?
Get a loan – Pay for your car – Drive your car!