In trying to secure a car loan, you get a good deal or a bad deal. How you go about securing your car loan determines the type of loan that you get.
There are various things you lookout for in securing the best car loan. Of course you wouldn’t just walk into a bank or into a car dealership looking for a loan. There are certain steps you need to take. Here Naijauto take you through steps to help you get the best car loan deal in Nigeria.
1. Be quick in your decision making
Because car loan deals are not constant or fixed, you shouldn’t take too much time thinking about what to do. Start to make your findings and try to secure the deal in one or two months. That deal you got may not be on the table by the time you are ready if you take too much time just contemplating.
Don't spend too much time contemplating
>>> To make quick decision, research well: Car loan in Nigeria: What documents needed for quick approval?
2. Stick to the amount you need
Sometimes you may be tempted with beautiful deals on monthly repayments but the danger of this is that you may be lured to borrow more money than you actually need.
It may seem a good deal at the time of borrowing but you should know that the more money you borrow, the more money the bank or dealership makes on interest. So stick to your initial plan regardless of the kind of mouthwatering offers you get.
3. Scrutinize the interest rates
Don’t assume lenders are giving you the best rates because they told you so. There are various banks and dealers with various schemes and interest rates. Some will tell you whatever you need to hear just to get you to broker a deal with them but a good deal will not have you in debt you will not be able to get out of. In this wise, it is advised you consult a car deal expert- such companies are burdened with the responsibility of connecting you with a good car loan provider and offer you the possibility of making a choice out of many options.
Spend time researching different banks' loan terms
>>> 10 factors that reduce your car’s resale value. This article identifies some critical factors you might overlook
4. Don’t rely on verbal promises
Promises made verbally are quite difficult to implement in most cases if not impossible. If they are going to throw any offers or anything important and noteworthy, demand it is included in your contract before you proceed to sign it.
5. Don’t be in a haste to sign the paperwork
While searching for a car loan, before you put pen on paper to sign any document, ensure the document has been read thoroughly and void of mistakes or any uncertainties. Ask for some time to go through the documents and if they decline and demand that you fill in the papers immediately that should be you cue to leave.
Whatever you sign in that document is binding and you may pay a great price if you fall on the wrong side of it.
Do not be in a hast to sign paper works!
>>> You may want to check this: Car hire purchase in Nigeria guide: hire purchase contract and company list
6. Don’t take conditional loans
Conditional loan are loans whose terms can be changed at any time. So it may be favorable at the time you are taking it then eventually things may get sour if any change occurs. A car is necessary trouble but don’t get into a bigger trouble already before you get the car. Make sure every detail of the loan is secured at the beginning without any condition of change. Details like interest rate, payment duration and monthly repayment method must be signed and sealed before any commitment is made.
7. Calculate the interest rate on your own to be sure it works for you
If you are a salary earner for instance, you may want to check if the monthly repayment plan and interest rate won’t break your bank and eventually affect other expenditures. If this is properly checked and the loan doesn’t work for you, let it go and look for a better deal.
Calculate the interest rate to be sure it works for you
In conlusion, there are currently over 25 banks that offer different car loans and schemes and this is with a projected rise in number by the end of 2019. It’s important that you choose the right bank and the car loan package works best for you. If you are going through car dealers, at some point, you might realize that the car loans from these dealers link back to the bank. The average dealer is out to make a profit. However, there are car loans in Nigeria that come through industry experts who will offer you rich insights and options that you can weight to find one that fits perfectly well into your budget and lifestyle.
>>> Do come back to check our useful Car buying & selling tips by Naijauto experts!