If you are waiting until you gather up money to get a car, it might take you many years, although that is the best option, however, if you can’t wait for those long years before you have your auto, we suggest you consider getting a car loan in Nigeria.
Getting a car loan isn’t that tricky, the lending criteria are a bit flexible. Nevertheless, you still need to factor in what you can afford, don’t go for car loans and get thin over it.
What is a car loan?
Many people find it difficult to pay outright money for a, this might either be because the price is too expensive for their current financial status, so they opt-in for a car loan to get their desire auto, you can also get a car loan in Nigeria too.
Most people who buy a car don’t always have the full amount to pay upfront. Instead, they seek funds by borrowing. In a simple term car loans are money sourced to get a car.
Auto loans are normally agreed upon by the lender and the borrower.
There are several places you can borrow from; we shall come to that later in this post.
All you do with an auto loan is to get a car and pay it back with money with an interest over a period agreed upon by the two parties.
You don’t need to wait years to save up for an auto before you get behind the wheel of a car you want, a car loan can make you an auto owner while you repay the money borrowed slowly.
The lender will charge interest to make a profit; there is nothing you can do about that, nothing comes for free. It is best to shop around to get the best rate
How to finance a car
Many things are involved in getting a car when you have the car, it can’t run without fuel, have you consider you are going to need insurance for your car and likewise you must put in a place a strategy on how to keep maintaining the auto.
Several factors need to be considered but the most important when looking for the best way to finance a car is
- Determine how much you can afford to get the car
- Determine how much you can afford to pay for a car before you begin applying for loans
- Know how much you are going to put away for insurance
- How would go about with the maintenance
- Consider fuelling.
- Where do you want to get the car from
- Which best deals you need to strike with lenders.
Where Can You Get A Car Loan In Nigeria
Most major money lender offers car loans and many of them like car loans because they can easily turn the car to cash if you can’t continue with the payment. There are some lenders we know you can get your car loans from without having to go too much stress in your dealings with them.
Best Places To Get A Car Loan
- Credit unions
- Online lenders
Credit unions focused on helping people, they are not profits oriented, they aim at helping their members, and all operations are also controlled by their members.
Credit unions have a lot of advantage over ann others like they are flexible, they have lower interest rates and better customer service, which are big advantages for borrowers.
You only need to provide a few of your details with credit unions to get a loan for the car you want to buy. It is best to become a member to enjoy all the benefits they have to offer.
Bank may be stressors but still worth trying as they are also one of the best places you can get a car loan.
With a bank car loan, you will have to shop around and get pre-approved for multiple loans; the bank will then do a comparison of the rates and pick the best one for you.
Banks use age when it comes to accessing car loan, if you are old enough, you don’t necessarily need to apply with a bank or if you under 18 you can’t get a loan too, you must provide the bank with all the information needed, including details on the vehicle you intend buying.
The bank will give you a quote, which you take to the dealer to remove unnecessary add-on the dealer may have been thinking, to sum up with your bill.
Online lenders are most with car loans, right from the comfort of your home, you can apply for the loan.
Before you do, check to compare several online lenders to evaluate their loan amounts, terms, interest rates and do a properly company review.
If you like to go for an online lender, don’t hesitate, they are very fast in approving loans and you can also get a good deal with any online lender you are working with.
Dealerships housed different cars and here is the best place to get an auto on a loan because they specialize in selling cars on a retail level.
Working with a dealer to own a car on a loan can be possible as they have a team of trained salespeople in the art of getting a car loan for you. The benefits of working with a dealer go thus:
Dealer can shop around with lenders and arrange an auto loan for you.
They may help you take out a loan from the car manufacturer, as several car brands have their financing division, this can make you get a car on a loan.
You can also strike a direct deal with the deal, this means you are getting the car loan for the dealer itself, such a dealer is now your lender.
How To Choose The Best Place To Get Car Loans
Credit score plays a big role; check it as it determining what interest rate you can secure and how much you can borrow.
Many things can get you disqualified from getting your car loans, look over your credit report for errors before you start applying for auto loans if you have it.
Make research and apply to various lenders for car loans, places like the local banks, credit unions, online lenders and dealership financing to apply at a time.
Try to compare offers, analyzing the annual percentage rate, down payment, loan term and fees, then pre-approved for the best option.
The best place to get a car loan depends on your needs and circumstances, try to go for what suit your need.