StartCredits StartCredits StartCredits StartCredits
  • Loans
    • Credit Score
    • Guide
  • Investments
    • Bank
    • Crypto
  • Log In
StartCredits StartCredits
  • Loans
    • Credit Score
    • Guide
  • Investments
    • Bank
    • Crypto
  • Log In
Jun 30

How to get car loans in Nigeria

  • June 30, 2018
  • StartCredits
  • Loans

Buying a new car whether it is a 2018 brand new model or tokunbo is a great milestone for most Nigerians. Only a few Nigerians can buy a new car without needing to borrow money. A car loan can be a great option to finance your dream vehicle. In this guide we explain how to get car loans in Nigeria.

What is a car loan?

A car loan, as the name suggests, is a loan you take out to pay for a car. You decide how much you need to borrow and over what term you want to pay it back. Most car loans run for around three to five years, but longer or shorter terms might be available.

Interest rates are usually tiered depending on how much you want to borrow. As a general rule, rates are lower the greater the size of the loan. Therefore it may actually be more cost-effective to borrow a bit more. That said, you should never borrow more than you can afford to repay.

 

Advantages and disadvantages of car loans

  • The biggest advantage of taking out a car loan to pay for your motor is that once you’ve driven the car off the forecourt, you own it outright.
  • One of the big disadvantages of car loans, however, is that because cars depreciate in value so quickly, by the time you finish paying off what you owe, your car may be worth a fraction of the price you paid for it initially. So this option won’t suit those who like to regularly update their vehicles.
  • Although monthly payments may be lower if you opt to repay your loan over a longer term, remember that you will end up paying much more interest overall.
  • Interest rates are often higher than personal loans and there are certain conditions attached to the agreement.

Things to note when trying to get a car loan

  • When you apply for a car loan, the better your credit rating the better the deal you are likely to get.
  • Although monthly payments may be lower if you opt to repay your loan over a longer term, remember that you will end up paying much more interest overall.
  • For instance, the vehicle will be used as security against the loan and you won’t actually own it until the last payment is made. In some cases, you’ll never actually own the vehicle and will have to hand it back once the finance arrangement is finished.

What you should consider before taking a car loan

Before buying a car with a loan, it’s important to think about the following factors before signing on the dotted line:

  1. Affordability of monthly payments
  2. Interest rate and charges associated with your car finance contract
  3. Size of upfront deposit required
  4. Mileage limits imposed by the lender

 

Providers of Car loans in Nigeria

There are lots of different car loans in Nigeria to choose from, so it pays to do plenty of research before picking one. Remember to look at other car finance options too, so you can make sure you are getting the best deal to suit your needs.

  • First Bank
  • UBA
  • Union
  • Stanbic IBTC
  • Access bank
  • Facebook
  • Twitter
  • Tumblr
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail

Related Posts

    Comments are closed.

    Search for your Loan

    Latest Loans

    • firstbanknigeria loan First Bank of Nigeria
    • snow microfinance Snow
    • irl microfinance IRL
    • Barnawa MFB Barnawa
    • Nigerian Youth Investment Fund Nigerian Youth Investment Fund
    • echo microfinance Eco bank
    • TraderMoni TraderMoni
      Rated 4.33 out of 5
    • firstbanknigeria loan FirstAdvance
    • imeela loans Imeela
    • Kada Microfinance bank Kada
      Rated 4.67 out of 5

    Loan Advice

    • Securing a federal government housing loan in Nigeria
    • How to check your NIN for a loan application
    • Non-performing loans of Nigerian banks
    • Types of loans offered in Nigeria
    • Home loans in Nigeria
    • Who gives loans for Nigerian Startups
    • The 2020 top banks in Nigeria by earnings
    • Key requirements to access loans in Nigeria

    Loan Type

    • Bank
    • Government
    • Grants
    • Lease
    • Microfinance
    • Moneylender
    • Mortgage
    • Peer-to-peer

    Company

    • About
    • Contact
    • Careers
    • Credit Score

    Loans

    • Moneylenders
    • Peer to Peer
    • Mortgage
    • Microfinance

    Investments

    • Crypto
    • Bonds
    • Deposits
    • Shares

    Follow Us!

    Follow Us on FacebookFollow Us on TwitterFollow Us on Google+
    • Loans
      ▼
      • Credit Score
      • Guide
    • Investments
      ▼
      • Bank
      • Crypto
    • Log In
    Return To Top
    • Moneylenders
    • Peer to Peer
    • Mortgage
    • Microfinance
    2023