Let’s admit it; we all need a car, especially when you get to certain stages in your life, a car becomes a must-have. But you know, while we are all aware that we need one, we still haven’t made the move to get that dream car. It’s not because we don’t know how to drive really (P.S, if you don’t know how to drive, find out a list of driving schools you can explore here), the major challenge is the fact that we often can’t afford to pay for a brand new car or even a fairly used one all at once.

For a lot of people, our cash flow comes in monthly, or even if it doesn’t, it’s easier to calculate your income on a monthly basis. Well, that’s an advantage because you can easily pay for that dream car in monthly instalments; this implies not having the whole cash to pay for a car at once does not have to stop you from a car. Monthly instalment paying implies paying specific amounts over a period of months until you complete paying the entire cost of the car.

In today’s article, we bring you a guide on buying a car and making payments in monthly instalments in Nigeria.

Where To Get a Car for Monthly Instalment Option
You can’t always get an option to pay in monthly instalments everywhere. Broadly speaking, two major sources that can offer monthly instalment options are:

Get Financing from your car dealer
Some car dealers afford you the option to pay in monthly instalments. This means they become the lender while you become the borrower. In this instance, they offer you a payment plan such that you don’t have to pay for the car immediately, but depending on the cost of the car, the total cost is spread through the months (maybe 20-52 months), till the selling price is paid with interest.

In this case, until you pay in full for the car, even though you flex around with the car, you don’t have total ownership or right to the car.

Lend Directly
When you lend directly, then the car dealers are not the ones offering financial aid, but rather you source for the cash, using a car loan from other places e.g. banks, cooperative societies, etc. Hence, you enter into a financial agreement with the car loan source on how you will pay the money in full with interest.

Factors That Affect Your Monthly Installment Payment/Plan

Down Payment
Down payment is the amount of money you pay out-rightly that covers part of the cost of the car and signifies your commitment to fully purchase the car. The downpayment can represent any per cent of the overall cost of the car, it depends on the agreement between you and the lender.

For instance, if you are buying a brand new Honda Clarity which costs about #12 million if the down payment is 20%, then you are paying #2.4 million upfront. This means you are left with 9.6 million to complete the payment.

Now, the more the amount you pay as a down payment, the lesser the amount of money you have to pay as monthly instalments and vice versa.

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OgaTheTop2:
Can this work in naija?

nellyzkid:
If they do pay on installation I know my country dem fit carry car run honestly…whatever you are buying pay in full cash or transfer

Bunkbars:
It is a foolish man,that would pay installments on a liability.

Plain foolishness.