What Should You Consider Before You Opt For A Car Loan?
  • 17-Mar-2016
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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.

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What should you look for when you opt 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, 
spend some time getting to know the exact situation of your finances. 
Speak to your adviser, or, if you are the self-taught type, 
then go through your finances one more time. Check your credit history, take stock of where you stand with respect to existing borrowings, etc. 
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. The key is to get the most benefit out of the lending agreement.

Ø  Car financing in Kenya works beautifully for those who can contribute a larger sum towards their dream wheels. 
Watch how the interest rate & the loan terms get better, the moment you share with your lender the news that you’re willing to fork out a higher amount as down payment.

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 are levied at the discretion of the lender & can be reduced/waived off completely, if the cards are played out right.

Ø  Given the large sum of money involved in the case of a car loan, it is crucial for you, 
as a borrower to ensure that everything is to your satisfaction. So make sure you know what to look for in a car loan.

Research & educate yourself in all the nuances. Take 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 miles on the open winding tarmac!

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