#BounceExclusive: How To Get A 'Cheap' Car Loan (1)
Mr. David Johnson (not real name) is an engineer with a construction firm in Lagos Island. He had been planning to get a car for the past 2 years.
He has saved for it but when the time came to buy his car, a friend told him of a viable business to invest the money.
Although the business is quite lucrative, he may probably wait for another 6 to 9 months before recouping his investment to be able to buy his dream car.
But with profitable knowledge, Mr Johnson can still invest in the business and buy his car.
This is when car loan or auto financing becomes a reasonable option.
However, unlike Johnson who has saved money and is investing in business, there are several other reasons that could warrant you to take a car loan.
It may be that you don’t even have the cash and may never be able to save the total amount required.
Whatever the reason, there are several institutions offering this kind of loan across Nigeria.
Also Read: 3 Ways To Build A Successful Business
In this series, we have set out to educate you on the process of getting a car loan. This will help to understand and know what you are walking into.
What to do in the beginning:
Let’s say Mr. Johnson has decided that he needs a car and that he will need a loan to buy it.
The first thing he needs to do is to go to a car dealer, get a car of his choice and then negotiate with the dealer on the price.
What The Lease Company Needs
The lease company here is the company that is going to finance Mr. Johnson’s car deal.
The first thing that the lease company would seek to establish is that Mr. Johnson has regular income, most times in form of a salary.
“Once the lease company is satisfied with the condition of Mr. Johnson’s revenue earnings, and he has negotiated with the dealer on the car that best suits him, then he would need to get an invoice from that dealer addressed to the lease company,” said Akanmu Oluseyi, who is a Sales Executive Supervisor at Rosabon Financial Services in Lagos, a company reputed for innovative auto financing solutions.
According to Oluseyi, “Addressing the invoice to the lease company is critical because without it, they cannot lay claim to the vehicle.”
The transaction actually commences when Mr. Johnson takes his invoice to the lease company. The company will in turn issue him a file stating several requirements to start the loan transaction.
Such requirements always include:
*Offer of employment letter,
*His work identity card
*One valid means of identification such as driver’s licence, international passport or voter card.
*The company may also require his pay slip.
“This is because they want to be sure that his salary is regular or that he has no other loan (maybe from his office) on that salary,” Explained Oluseyi.
He is also required to provide them access to his bank account statement for the immediate past six months – this shall be collected by the lease company directly from Mr. Johnson’s bank.
*2 passports photograph
*Utility bills not older than three months.
After then, he will be issued with an application form which he will fill and return to the company.
According to Oluseyi, “His bank statement is what the company needs to know that he earns the salary that he claims to earn.”
“His pay slip is from his employer. But his bank statement is what really gives me an idea of what enters his account monthly. It shows me what is actually paid to him,” he added.
(The concluding part of this episode will be available of our app and website bounce.ng from Tuesday August 22nd)