Buying the car of your dreams is becoming quite easy these days,
thanks to the great number of choices available from every car maker.
With car financing in Kenya too readily available rather freely,
getting that car into your parking lot isn’t all that tough either. What is tough however,
is getting the financing at the best rate & at the most favourable terms possible.
Items to be considered while going for a car loan
One should always consider the following factors while going for a loan facility;
Ø Do your homework. Before you walk into the dealer’s lot,
thoroughly check your finances. the incomes and the expenditures.
Speak to your adviser, or, if you are the self-taught type,
then go through your finances one more time. Consider your borrowing history, check your status on the outstanding loans.
Car financing in Kenya heavily dependents on financial intelligence & the credit rating also plays a key role in deciding the lending rate,
and other terms with respect to the loan.
Ø Shop around for the best deal, for even 0.25% variance in the interest rate can mean a difference of thousands of shillings to
be repaid over the tenure of the loan. Some people are able to leverage their relationship with the existing lenders,
while others end up getting a better deal from the outside.
Ø Car financing in Kenya works beautifully for those who can contribute a larger sum towards their dream wheels.
Check trends on the interest rates & the loan terms., the moment you share with your lender the news that you’re willing to fork out a higher amount as down payment how does it affect the premiums and so on.
Ø Hidden charges such as processing fees, administrative charges, depot rates & their ilk are what you should look for when you opt for a car loan.
In most cases, these charges are levied at the discretion of the lender and can always be reduced or waived off completely, depending or your negotiations.
Ø Considering the large amount of money involved in the case of a car loan, it is important for you,
as a borrower to ensure that everything is to your satisfaction and no leaf is unturned. So make sure you know what to look for in a car loan to avoid falling in to a mess.
Research & educate yourself in all aspects . Tag along someone knowledgeable along, if possible. And in the end,
remember that no matter how the deal goes, the car is yours to enjoy for many pleasurable Kilometres on the open winding tarmac!