Car financing: 10 Dos and Don’ts when you want to buy a car


Posted by: Oluwaseun Solomon

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Whether you are looking to buy a brand new or used car, there are some do's and don'ts you should know before committing to the finances. Here are our top 10!

Have you found your dream car and about to go for it? Wait!

Apart from the fact that here at we have massive listings consisting of various types and models of New, Tokunbo, and Nigerian used cars for sale in Nigeria, we also give out the best tips and guides to everyone shopping or looking to buy a new or used car. Yes, we do!

This is why in this article we have decided to share our top 10 list of Do’s and Don’ts things which we recommend for everyone about to get into car financing at any point.

Meanwhile, if you are curious about our above mentioned other high-quality tips and guides, we will share a link at the end of this post to the page where you can find them all, read on!

The thought of owning a new ride can be so overwhelmingly exciting for many buyers, especially if it’s going to be their first car ever. This same way, the burden of finances can overwhelm and become real trouble for a buyer when not properly informed. Even though car prices can always be negotiated at the sales point, it is still important that anyone looking to buy a car at any point should try to do away with emotions first.


Getting over-excited about the car you are buying next? – Please, calm down and learn first

If you really want to get a good deal on the car and avoid unnecessary financial issues after purchase, then please read our below guide consisting of our top 10 Do’s and Don’ts in car purchase and financing:

1. Get as much information as you can about the car

Have you ever heard or read this expression before – “Knowledge is power”?

Like it or not, that expression isn’t dumb in any way. In this case, we highly recommend that you research and find out all the necessary things you should know about the car you are going to buy.

It is crucial that you know to a good extent, the features and the price range of the car you are planning to spend money on. Doing the research and gaining more knowledge is going to really give you power not just during negotiation with dealers but also in helping you not get fooled and scammed.

It’s doesn’t matter if you don’t mind wasting money or buying at an unreasonably high price.

No matter how rich you can be, you don’t want to get fooled right?

2. Discuss in depth with your Insurance Agent

Many people have no idea that insurance actually varies with different vehicles, they just think “oh it’s all vehicle insurance”.

We will highly recommend that you have an in-depth discussion with your insurance agent first, know all about the insurance policies for that particular car you are buying just before you go ahead and make the car purchase.

For those of you on a low or minimal budget;

You don’t want to buy a vehicle today and find out tomorrow that its insurance cost is even twice more expensive than the car itself, right?

3. Know your Credit Report and Financial plan

Be sure to look into and know your average monthly earnings and expenses so that you don’t end up buying a lovely vehicle that its monthly maintenance cost will land you in debt.


Know your Credit Report to be sure that you are buying a car you can maintain

You need to reckon the fact even if you are buying the car as brand-new or no matter how good the condition of the car is before purchase, you will still make some compulsory monthly expenses. Example are; fuel expenses, oil expenses, and any other unforeseen maintenance costs that always come up with cars generally.

4. Keep a handy calculator

Some might think that this point is just dumb and unnecessary. Well, it isn’t!

You don’t want some crafty dealers throwing numbers at you while you don’t border calculating when necessary if those numbers benefit you or not.

No matter how good you are in math, we recommend you have a handy calculator with you at the dealer’s place or you could easily pull up the calculator application on your mobile phone for this.

Don’t assume, let the calculator do the math instead of you racking your brain trying to get the numbers and calculations right!

5. Be prepared to have a mind change if it comes

A lot of people don’t know that; as a buyer, you have the greatest power of choice.

You can change your mind at any point you like. So, don’t just fix your mind to one car, one dealer.

Rather, prepare your mind to change as much as you can until you find the best car at the best deal that will come easy for you to buy and maintain.

Changing your mind in the middle of negotiation isn’t going to embarrass you or anyone, it is only going to earn you respect and show that you know what you want.

After all, you don’t want to spend a huge sum of money on something that wouldn’t favor you in the long run, do you?

6. Don’t brag of paying in cash

There is no better way of saying this, it is a terrible idea for you to brag from the beginning of a negotiation with a car dealer that you want to pay in cash. Doing this will only make them geared towards selling you the best car that makes them the most profit. Yes, maybe you have never heard of that before.

Dealers love when you pay on cash.


Because paying in cash makes more profit for car dealers than loaning a car from them. So, don’t over motivate dealers by bragging of paying in cash, rather enter into the negotiation as if you will be opting for a car loan. Then, let the negotiation floor be plain all through till the end.

You don’t want to brag, you want to get the best deal!

>>> Do you know the Nigerian driving license application process?

7. Don’t come with kids to the capital office

Yes, even though it is good to make sure the car you are buying is suitable for your kids, that’s if you plan to carry them in it. However, we recommend you don’t bring them along to the capital office during the final step of the car purchase in order for you to not get easily distracted and make silly costly mistakes.

You can’t be looking after for your kids while trying to concentrate on some paperwork at the same time.

Remember, your signature has power in law and finance!

8. Remember, it’s business

Don’t forget that the processes involved in purchasing a car are actually a business altogether. So, you don’t want to get too emotional and get swayed by crafty cunny dealers as well as you don’t want to get too cranky and create enmity between you and all the people involved generally. Just smile, and do business!

9. If you don’t understand some paperwork, don’t sign them

Just like we mentioned shortly above about your signature being powerful in finance. You should never sign any piece of paperwork that seems confusing for you and you don’t quite understand it.

Ask as many questions as you can and get reliable satisfying answers before you go ahead and sign any document.

Remember, you are the one spending money in the transaction. So, be careful!

10. Shop at many dealers

 This point is pretty self-explanatory.

Don’t just check out one dealer and assume his price is standard or he is the only one that sells that model of car. Doing that will be an absolutely dumb thing. Yes, we have to be brutally honest with you!

Just like every other purchase you normally do, make sure to check out as many as possible car dealers you can reach, compare their prices, and compare the available models of that your dream car that each of the dealers has in stock before concluding who to buy from.

And guess what, this is already the future.

Yes, what we mean is; the internet has solved half of these car shopping problems for you. You don’t have to literally start visiting each of the dealers here in Nigeria, No!

There are now many online car listing websites just like ours here at Naijauto where you can relax at the comfort of your home and browse through hundreds and thousands of cars listed up for sale here in Nigeria as well as even get the latest or updated car prices in Nigeria too.

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Our final words

You have just gotten educated on Car financing, congrats!

Also, now you know our top 10 Dos and Don’ts when you want to buy a car, don’t you?

Now, with all of this knowledge we have provided, you can go get your dream car today!

Oh, we didn’t forget the link we promised to share, see it below:

>>> Navigate to see our other high-quality car maintenance tips, car buying & selling guides


Oluwaseun Solomon
Oluwaseun Solomon

Oluwaseun Solomon

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Oluwaseun Solomon is a prolific and diligent automobile writer at He's also an experienced digital marketer and a creative multimedia developer that specializes in video editing. He currently contributes informative and easy to read articles on topics covering transportation, traffic updates, auto industry updates, and different car reviews.
When Solomon is not writing, you will either find him composing music, editing videos or simply enjoying YouTube "TEDx Talk" videos with a chilled drink :)

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