There are two types of car loan deals – a good one and a bad one. The type of loan that you eventually end up with will rest largely on how you go about securing your car loan.
What is the first thing you should do when you are looking for car loan deals? Do you simply walk into a bank and ask for a car loan? Do you stroll into that dealership in your neighbourhood and request for a car loan?
Don’t be in a rush. Before you make any decision or take that first step, let us take a look at the steps you should take to explore the sweet side of car loan deals.
Shop For a Loan You Can Trust
The first thing you need to do when you need a car loan deal is to shop for the loan. Make out time to place several offers side by side to see which one works best for you.
What this means is that picking a specific car or negotiating its price should not sit on top of your list. If you cast your net wide enough, you will get several loan offers; especially if you are qualified for a car loan.
You can actually get prequalification for a loan. This gives you the advantage of going to a car dealer with a blank cheque. Don’t hesitate to ask if a dealer can beat the car financing deal you have.
Don’t Stretch the Loan-Shopping Window
The fact that you need to shop for a loan does not mean it should take you forever to find one that works for you. Remember that loan conditions are not fixed and change from time to time. You should aim to secure a good deal between one or two months at the very most.
Go After the Entire Loan, Not Monthly Repayment
Your focus should also be on the total amount of loan you need to buy a car. If you are going to calculate the monthly repayment plan, it should be done in your private time.
The danger of dwelling on monthly repayments instead of the total sum is that you can be lured to borrow more money. As a result of the spur of the moment, you might not consider this a big deal but you are wrong. Don’t be tempted to borrow more. Stick with the total amount of money you are collecting for the car loan. The simple truth is that the more money you collect to finance the car, the more money the bank or dealer makes through the interest you will be charged.
Don’t Assume Lenders Will Offer You the Best Rate
As of June 2018, Nigeria had 21 banks, which have various car loan schemes and interest rates available to you. Before you conclude, consult car experts with car loan deals and offers. Such platforms take up the responsibility of linking you with trusted car loan providers. They also ensure that you also enjoy the advantage of having options to pick from; especially when they work with more than one car loan provider.
Remember to scrutinise the interest rates with the goal of picking up a car loan deal that is reliable, realistic and does not throw you into a financial hole you will struggle to get out of.
Don’t Sign Paperwork in a Rush
Before you append your signature on any document while searching for a car loan, ensure you read it thoroughly to avoid mistakes and regrets. If a dealer or car loan providers take a stand against giving you sufficient time to go through the terms and condition, don’t hesitate to walk away from the offer.
If possible, take it home and read it thoroughly before signing. You should remember that the agreement in the document will be binding. It’s important to know what is inside it. If you realise that you cannot afford a loan, then it is probably not a loan for you.
Oral Promises Don’t Work
If your car loan provider makes a promise to you, then it has to be concluded inside the contract. Oral promises are difficult, if not almost impossible to enforce. If there is anything that you consider important, insist that it is included before you sign.
Do Your own Calculations
Before you put pen to paper, go through the calculations that your car loan provider has shared with you. The goal here is to confirm the numbers. If there is a variation between your final figures and what the bank shared with you, then, there is a need to ask questions.
It’s crucial to be sure that the loan works best for you. At some point, you might realise that the car loans from car 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 priceless insights and options that you can weight to find one that fits perfectly well into your budget and lifestyle.
Stay Away From Conditional Loans
Conditional loans are loans that their conditions can change from one that is favourable to one that you will not find favourable. Don’t enter into a signed agreement until everything around the car loan has been finalised. Such details include the down payment, the duration of repayment, the interest rate as well as monthly payments involved.
As we mentioned earlier, if the car loan is conditional, don’t commit yourself.
Carry Out Your Investigation
Talk is cheap and loan providers can tell you amazing things just to reel you in. Experts have unanimously submitted that you should dedicate time to verify the integrity of your potential loan providers. Do they have a good reputation? Has anyone or a group of people ever accused them of shady dealings? Do they deliver on their promises? If they are in a partnership, you should check out their partners as well.
You should also carry out some research on industry regulations and what is legally acceptable. When scanning through feedback on online platforms, make an attempt to verify any positive or negative claim made by your potential loan provider and people who have things to say about them.
Final Thoughts on Car Loan Deals
Car loan deals give you an opportunity to own a car without necessarily burning a hole in your pocket or ignoring other vital parts of your life. The fact that you don’t have the cash to buy a car right now does not mean you should not own one. However, before you make any written commitment, ensure you follow the steps we have shared with you.
Would you consider a can loan for your first car or your next car?