For most Nigerians, buying a car– whether new or used- is a huge financial decision. Unlike other devices that could cost tens of thousands to purchase; buying a good quality car is worth hundreds of thousands to millions of naira. This amount is usually too expensive for the average salary earner in Nigeria to pay upfront, hence, getting a car loan is the only viable and quickest means to own a car.
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What Is A Car Loan
A car loan also called an auto loan or auto finance, is the amount of money you borrow to get a car. A great advantage of getting a car loan is that you get to own a car as soon as you need it; rather than wait for years to save up to afford the car. There are certain things you need to consider when taking a car loan. These are;
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- Affordability of monthly payments or instalments.
- Interest rate and charges associated with your car finance contract
- Size of upfront deposit or down payment required
- Mileage limits imposed by the lender
Paying attention to these details will ensure you don’t take a loan that will become a burden for you to pay back.
Where To Get Car Loans In Nigeria
A big puzzle in getting a car loan is where to get one in Nigeria. This article contains the best sources to get car loan offers in Nigeria. The following institutions offer car loans in Nigeria, so you can pay them back conveniently.
UBA Auto Loan
UBA auto loan is a product of the United Bank of Africa (UBA)- a financial institution with various branches in Nigeria and worldwide. This auto loan allows you to get your desired car which falls under any of these approved brands- Toyota, Honda, Mitsubishi, Hyundai, Mercedes, Nissan, Ford, Suzuki, Kia, and Volkswagen.
To apply for a UBA Auto Loan;
- Visit any of the approved auto vendor stores to obtain a Pro-forma invoice (PFI) for your preferred car
- Walk into any UBA branch to complete a loan application form or apply online.
- Execute an offer letter detailing the loan terms and requirements, following approval of the loan.
- Pick up your preferred automobile from the auto vendor.
Cars45 Financing
Cars45 Financial provides an affordable means to drive your dream car and pay without hassle. Their interest rate is low, which makes it easy for the average salary earner to pay back the loan on time.
One has to be a salary earner or a registered business owner to qualify for Cars45 financing. You will have to provide proof of this when applying for the loan. Cars45 car financing allows you to get a car loan approval within 72 hours and pay for up to 12 months at a 2.5% monthly interest rate.
To apply for cars45 financing;
- To begin your application, visit buy.cars45.com or any of Cars45 retail locations in Nigeria
- Select a car available for financing (Grade A, B, or C car with a maximum value of N3,000,000)
- Fill in your details in the “Get Car Loan” section, and click “Get Prequalified”
- Follow the prompt and answer all the questions presented
- Click on “Submit” and a Cars45 rep will reach out to you within 24 hours.
Creditville Auto Car Loan
Creditville Auto Loan is available for salary earners who desire to own a private car. This auto loan is a product of Creditville Limited – an asset management company and a private lending institution registered in Nigeria.
To apply for a Creditville Auto Loan;
- Carefully go through the requirements for a car loan.
- If satisfied, fill out the online auto lease application form adequately and submit your car loan application.
- You will be contacted by a Creditville agent to proceed to the vehicle inspection stage
- All the paperwork required to secure the car loan is put together and assessed by Creditville’s agent.
- Subsequently, the Car Loan is approved if you meet all the requirements.
- The funds for you to buy the car are disbursed or the keys to one of the available vehicles are given to you.
FCMB Auto Loan
FCMB is a financial institution in Nigeria and they provide a way for customers to own their personal cars through the FCMB Auto Loan scheme. You can apply for this loan either by visiting the FCMB loan portal online or walking into any of the FCMB branches in Nigeria. There are two variations of the FCMB Auto Loan which are; the FCMB Auto Loan Alliance and Standard Auto loan.
- FCMB Auto Loan Alliance: Under this package, you have access to up to 30 million NGN to get your dream Tokunbo car, at an interest rate as low as 20℅ per annum.
- Standard Auto Loan: This loan package is for you if your employment is structured or you are self-employed with a regular income range. You can borrow up to 30 million NGN and pay over 12 to 60 months. You can only buy cars pre-approved from auto vendors recognized by FCMB.
Firstbank Automobile Loans
First Bank is another financial institution in Nigeria that offers auto loans to Nigerians, particularly salary earners.
To apply for a First Bank Automobile loan;
- Download the Auto Loan Application Form on the First Bank website.
- Complete the form correctly
- Submit it at the nearest FirstBank branch.
- Prepare and submit other required documents such as; Application letter: Proforma Invoice from FirstBank-approved vendors; Payslip for the last three months; Statement of account; and Letter of total emolument.
Stanbic IBTC Vehicle And Asset Finance
Stanbic IBTC provides auto loans to Nigerians with a flexible and convenient repayment plan. Their auto loan scheme is tagged Stanbic IBTC Vehicle and Asset Finance. To qualify for this loan, you must have an account with the bank and also have a verified means to complete the repayment.
To apply for Stanbic IBTC Vehicle and Asset Finance;
- Complete the loan application form correctly.
- Show proof of income/ evidence of salary.
- Submit Statement of Account.
- Submit a proforma invoice for your vehicle or asset of choice (preferably from a Stanbic IBTC partner dealer)
AutoChek financing
AutoChek financing provides a flexible and convenient way for Nigerians to own their dream car.
To apply for AutoChek financing;
- Complete a short form on the Autochek website and get personalized cars to choose from
- Select a car and review the terms of the finance
- Apply for a loan and receive personalized offers
- Accept a loan offer and drive home your dream car
Access Bank Auto Loan
With Access Bank Auto Loan, Nigerians can find a flexible means of their own and buy either a brand new car or Tokunbo cars. This loan is open to salary earners, Small and Medium scale businesses, and corporate organizations.
To get started;
- Visit any Access Bank office.
- Fill out the loan application form correctly.
- Submit any required documents necessary.
- Wait for a while to get approval.
- Once approved, sign the loan contract and drive your dream car home.
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