Site icon Motivation Africa

How To Get A Car Loan In Nigeria

How To Get A Car Loan In Nigeria
Spread the love

What if I tell you that you can get a loan specifically to buy that dream car of yours, would you go for it? There exist several genuine ways you can get a loan to buy a car and in this blog post, you will discover how to  get car loan in Nigeria.

How To Get A Car Loan In Nigeria

What is a Car loan?

A Car loan is a type of car financing that allows an individual to borrow money from a lender to purchase a car.

What to do before getting a Car loan

Getting a car loan in Nigeria comes with certain requirements which you should indeed research and consider if it is what you want to do.

Before getting a car loan you should consider;

The Cost of the Car and the Repayment terms

Monthly repayments of a car loan in Nigeria are mostly done in installments. Repayment terms could be 60- 72 months or more. It varies with the car lending institution. Still, you should know that the longer the repayment term, the lower the monthly payments and the higher the possibility of paying a higher total interest rate. So choose your loan repayment term carefully.

The interest rate associated with the car loan and associated charges.

Many car loan financing institutions pay the full cost of the car amount while some do not. Most will require you to make an upfront payment towards the cost of the car while some will pay 60% of the total car amount and you will be made to pay 40%. Some car loans require you to pay a certain amount of money (APR) as part of the car loan. Considering the interest rates and fees will help you choose a car loan financing option that is suited for you.

Consider if the car loan has mileage limits

If you are getting your car loan by dealership financing, you might be restricted on miles driven by the car dealer. This is one of the things you should look out for.

Most importantly before getting a car loan in Nigeria please ensure that you have a steady flow of income. Believe me, many car lenders in Nigeria do not treat defaulters kindly. Some only add a default fee while some go to the extent of reclaiming the car(car loan by a dealership or some banks).

Requirements Needed to get a Car Loan in Nigeria

There is always a requirement needed before one it’s eligible to apply for a loan. Listed below are the basic requirements needed to get qualified for a car loan in Nigeria but please note, requirements vary with the lending institution

Easy steps on how to get a car loan in Nigeria

Ways you can get a Car Loan in Nigeria

You can get a loan to buy a car in Nigeria through the following ways

Private lenders

This refers to digital lending platforms like Fairmoney, Quick cash, Branch, Palmcredit, Carbon, etc. Private lenders are the most common way you can get a car loan in Nigeria but you would have to improve your credit history before you would be given access to a higher amount that would cover the cost of getting a car.

Direct lending from banks and credit unions

There are a large number of banks in Nigeria that offers car loans to salary earners through their auto lease programs. A few of the best banks and credit companies you can get financing to buy a car are; Stanbic IBTC through its vehicle asset finance, Access bank, First Bank, UBA Auto loan, FCMB, Autochek, CreditVille limited, Opticom Finance, StartCredit, and Rosabon Financial Services.

Dealership Financing

Dealership financing is one of the convenient ways you can get a car in Nigeria. All you have to do is apply and obtain the loan from a car dealer finance department. If the loan is approved you can pick a car of your choice from available car options.

Final Thoughts

Everyone wants to own a car but many tell themselves they can not afford it. Money should not be a limiting factor to getting that life of luxury you dream of having. Just like in America it is indeed possible to get a car loan in Nigeria but you must be abreast of how the car loan process works to be better prepared and also ensure that you can repay the loan when due.

 


Spread the love
Exit mobile version