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Nairaland Forum / Nairaland / General / Business / Would You Buy A Car With A Bank Loan? (9123 Views)
Poll: Would you buy a car with a bank loan?Yes: 41% (28 votes)No: 58% (39 votes) This poll has ended |
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Would You Buy A Car With A Bank Loan? by Seun(m): 3:25pm On Oct 01, 2011 |
Hi, In our thread about how to get a car loan, many people said car loans make no sense in Nigeria. ifyalways: A car is the last thing I would take a loan for!As far as Ifeoma is concerned,a car remains a liability(be it for biz purporse or for comfort) and as such can only be purchased with "cash". fm7070: What about interest rate? Ijogz K: Car loan ke catso: A CAR LOAN, ! chuckdee4: A car is the wrong thing to get on loan, the moment you buy a new car it starts loosing value, so why take a loan for something that will continually drop in value. I am all for the improvement of people's lifestyle but not at such an expensive price fm7070: Have you have considered the future of the people you're advising? If they lose their job today, what happens to them and their family? and even the liability (car) they've bought. They ended up selling it so cheap to service the debt. Or do you think banks will sympathise with you if you lose your job? But the author wrote a new post to defend car loans, insisting that "a car loan may well be a wise decision if you take a debt that is compatible with your income". Do you agree with this statement? Read the author's defense of car loans here: Is it wise to buy a car with a loan? |
Re: Would You Buy A Car With A Bank Loan? by kodewrita(m): 3:28pm On Oct 01, 2011 |
I wont unless I intend renting the said car out for car-hire or leased transport. |
Re: Would You Buy A Car With A Bank Loan? by manny4life(m): 4:11pm On Oct 01, 2011 |
As far as I know and finance thought me, Car loan is a huge LIABILITY and WILL NOT embark on it. You are literally putting yourself in debt, and that one isn't a good debt. |
Re: Would You Buy A Car With A Bank Loan? by halfcurrent(m): 4:12pm On Oct 01, 2011 |
i have done it once and did not regret. i have long completed the payment. currently i am using a brand new car that i bought with cooperative loan. and i am equally enjoying it. the fact that i have not been to the mechanic for two years except for routine services. 1 Like |
Re: Would You Buy A Car With A Bank Loan? by Nobody: 4:21pm On Oct 01, 2011 |
Car loan is ok. Why pay 2million cash down and become stressed due to other financial commitment. If the APR on the car finance is not more than 250k at the end of term of loan, then it's a good idea and if you are scared of loosing your job, i am sure you can take up a payment protection insurance. |
Re: Would You Buy A Car With A Bank Loan? by norrisman: 4:31pm On Oct 01, 2011 |
I dont understand this phobia for debt, I guess it is a Naija thing. I cant remember properly but I can only imagine I must have shared the same ant-debt sentiments when I was in Naija. Life is for the living and as long as you take a loan that is within your means you should be fine. The only thing I have against car loans in Nigeria is the exorbitant borrowing rates, Up to 25% in some instances! Now thats crazy. I took a car loan 2 years ago with an interst rate of 5.9%. I only have a year left and at the end I would have paid just over £3000 in interest. Life like I said is for the living and that amount is a price I am willing to pay since I know myself and I am not disciplined enough to save up the amount required to buy the car outright over 3 years but I know if I take a oan, I must pay it back otherwise my credit suffers. |
Re: Would You Buy A Car With A Bank Loan? by Nobody: 4:39pm On Oct 01, 2011 |
^^ U mean 25% interest a month? ![]() |
Re: Would You Buy A Car With A Bank Loan? by DisGuy: 4:43pm On Oct 01, 2011 |
norrisman: mainly because of job security in Nigeria the interest is usually killing the process isnt straight forward not as accessible as it looks on paper |
Re: Would You Buy A Car With A Bank Loan? by femmy2010(m): 4:59pm On Oct 01, 2011 |
Never. |
Re: Would You Buy A Car With A Bank Loan? by ochukoccna: 5:31pm On Oct 01, 2011 |
Never Dem no swear for me nah! ![]() ![]() ![]() Don't be swayed by all those flashy TV ads O! How many up&coming folks take loans in 9ja? @ norrisman, take up a 9ja loan so we can learn from your experience. 9ja banks give 2.5-4% on a fixed deposit of money yet charge up to 25% interest Do the math yourself That's why na society bigwigs dey really do loans in 9ja Or didn't you see the names attached to non performing loans that Sanusi published some time back? Or Arisekola's current tiff with GTB ![]() ![]() ![]() I wish 9ja's economy could evolve like to be like that of where you are ASAP Until then , I buy my car ca$h down |
Re: Would You Buy A Car With A Bank Loan? by akinnux(m): 5:36pm On Oct 01, 2011 |
I did three years ago and I am still regretting the decision today. |
Re: Would You Buy A Car With A Bank Loan? by Ultrame(m): 5:43pm On Oct 01, 2011 |
Am I crazy? The fear of bank loan is the beginning of wisdom. Even the Bank employees are scared of taking the loans because of job insecurity. My policy is: If i dont have the cash for it, then it's not yet time to buy it. (BTW, "IT" can be anything) My 2 cents. |
Re: Would You Buy A Car With A Bank Loan? by fxtopedia(m): 6:16pm On Oct 01, 2011 |
Ultrame: GBAM!!!!!!!!! |
Re: Would You Buy A Car With A Bank Loan? by gaakgaba: 6:51pm On Oct 01, 2011 |
i strongly believe that there is no straight forward answer to this question.there are various factors to be considered before embarking on it(mainly the cost-benefit analysis). Intrest rates, your income flow,the maintenance cost of the car, how u value the convinience are some of the things you need to consider. |
Re: Would You Buy A Car With A Bank Loan? by werepeLeri: 7:31pm On Oct 01, 2011 |
The topic simply says, will you buy a car with a bank loan, but on the front page, it says, Will you buy a car with a bank loan in Nigeria - can these moderators ever be as concise as the original post? You have given it a different meaning by adding "in Nigeria" |
Re: Would You Buy A Car With A Bank Loan? by Ekans: 7:47pm On Oct 01, 2011 |
Nigerian bank loans are never the way they seem on paper,aside the exorbitant interest rates,there are equally hidden charges ie VAT on interest,handling charges.Moreover one has to look at unforseen circumstances like accidents and theft.In short,car loans in nigeria is only suitable for oil sector workers. |
Re: Would You Buy A Car With A Bank Loan? by Otunbakay(m): 7:52pm On Oct 01, 2011 |
No no no no no nnooooooooo i wont touch that loan with the longest of pole ever seen in the world. That will amount 2 penny wise, pounds foolish. |
Re: Would You Buy A Car With A Bank Loan? by werepeLeri: 7:58pm On Oct 01, 2011 |
Nigerians a re so bush. Yet they go abroad and collect credit cards and bank overdrafts and first thing that comes to their mind is to buy a car- even when they dont have a license to drive abroad. LOL |
Re: Would You Buy A Car With A Bank Loan? by Amjustme: 8:22pm On Oct 01, 2011 |
Diaz nothing wrong with dat, get an okay car not d one dat will kill me with gbese if i hit it and then consider my income, nothing will stop me wit dis 2 points. |
Re: Would You Buy A Car With A Bank Loan? by blank(f): 9:08pm On Oct 01, 2011 |
I will and I have. It is easier 2 pay in instalments than upfront. Who gets salary payment upfront (govt, politicians, etc). The rest of us get paid in bits n its not easy 2 save up that kind of money. The interest is not too bad. |
Re: Would You Buy A Car With A Bank Loan? by arsenefc: 11:46pm On Oct 01, 2011 |
It depends on your income though. It would be unwise to buy a car worth 10 million naira, when you only make 1.2 million naira per annum; it will take you forever to pay back the loan. However, if you make 20 million a year, and you need to, per job requirements, be able move around quickly and arrive at work on time, then investing in a car, with a bank loan, is not a bad thing, 'cos if you wait till when you'd have 10 million cash in hand, then, my friend, you will wait a long time. |
Re: Would You Buy A Car With A Bank Loan? by emtar(m): 1:14am On Oct 02, 2011 |
BUYING CAR WITH LOAN HAS SOME CATEGORIES. IS IT FOR LEASURE/PLEASURE? IS IT FOR COMERCIAL? THEN IS BORROWER A CIVIL SERVANT? OR A BUSINESS MAN WHO NEED IT TO RUN HIS BUSINESS?. BUT TO ME I CAN NOT TAKE A LOAN TO BUY CAR IF IS NOT GOING TO INCREASES MY INCOME. BECAUSE OTHER FACTORS MUST BE CONSIDER. |
Re: Would You Buy A Car With A Bank Loan? by emtar(m): 1:17am On Oct 02, 2011 |
BUYING CAR WITH LOAN HAS SOME CATEGORIES. IS IT FOR LEASURE/PLEASURE? IS IT FOR COMERCIAL? THEN IS BORROWER A CIVIL SERVANT? OR A BUSINESS MAN WHO NEED IT TO RUN HIS BUSINESS?. BUT TO ME I CAN NOT TAKE A LOAN TO BUY CAR IF IS NOT GOING TO INCREASES MY INCOME. BECAUSE OTHER FACTORS MUST BE CONSIDER. |
Re: Would You Buy A Car With A Bank Loan? by gbollykore: 3:18am On Oct 02, 2011 |
if the Federal goverment of Nigeria would intervene and protect consumers from subprime lenders , i think geting a car on hire purchase is a great idea, provided you get something you can coveniently pay for, think about it the reason why people are corrupt and resort to crooked means to survive is because they want to have the basic things of life and its not easy to come by for instance if a fresh graduate wants to legitimately save up for a car ,when would he be able to put the money together, there is a huge class difference between people who have and people who dont have in Nigeria, because things are not easy to come by, if buying a brand new car or brand new furniture and houses becomes easy for everyone then there would be no oppression i live in the usa and when i was going to school and driving a taxi i was able to afford a brand new honda odyssey in 2006, whereas in Nigeria its even considered an insult for a taxi driver to think about buying a brand new car getting a loan for a car in not a bad idea provided the interest rate is not ridiculous, you buy what you can afford and you have a steady source of income to pay for it |
Re: Would You Buy A Car With A Bank Loan? by Nobody: 7:57am On Oct 02, 2011 |
You invest in either an asset or a liability. In this case, you are taking a loan to fund either an asset or a liability. Only you can best answer whether it's an asset or a liabillity you are getting. |
Re: Would You Buy A Car With A Bank Loan? by cicero(m): 12:34pm On Oct 02, 2011 |
Couple of years ago I sought to buy a car through some banks based on the adverts they put on the newspaper and I discovered that: 1. The adverts are largely misleading, in short they are pure unadulterated lies. You will get an entirely different story the moment you step in there. One of the banks had advertised that you do not need to have an account with them, just provide all they are asking you to, but when I got there they said I am not eligible, I pointed out that the advert said having an account is not necessary, but the lady ignored me. This is in addition to the fact that by the time you are shown the terms and conditions, you will disqualify yourself before they tell you you are not qualified. 2. I am not a financial person but by the time the amortization was explained to me I detected fraud in most cases. My conclusion is the conditions of buying a car through the banks makes saving for the car look like a piece of cake, and if you finally do buy the car, talk to someone who understands the tricks the banks use to monitor your loan repayment or else you will repay what you rightly owe plus much more. Here in Nigeria if you have good income that can assist you pay back the loan without stress and you are ready to put up with unprofessional Nigerian bankers then buy through the bank, otherwise buy with your cash and have fun. As for asset or liability that is immaterial, what matters is do you need a car? Can you maintain the car? |
Re: Would You Buy A Car With A Bank Loan? by blackcypha(m): 8:12pm On Oct 02, 2011 |
No way Bro, |
Re: Would You Buy A Car With A Bank Loan? by donem: 6:20am On Oct 03, 2011 |
Not at all if i have not got the finance to purchase cash down i forget about it. |
Re: Would You Buy A Car With A Bank Loan? by oc2fish: 9:20am On Oct 03, 2011 |
I dont think i will buy car with bank loan in Nigeria, but with coperative money i can buy car, all this will depend on my income |
Re: Would You Buy A Car With A Bank Loan? by Ikroberts: 1:39pm On Oct 03, 2011 |
How can I do such a thing. I won't. |
Re: Would You Buy A Car With A Bank Loan? by cordj2: 12:11pm On Oct 06, 2011 |
Car loan is the only sure means a salary earner can own a brown new car. Why pay #4.5 once when u can do it installmentally and invest the money elsewhere |
Re: Would You Buy A Car With A Bank Loan? by philip0906(m): 6:26am On Oct 07, 2011 |
so people buy cars with loans? ![]() ![]() |
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