Believe me when I tell you owning a car is not a luxury or an ostentatious show of wealth, as many may assume. Acquiring a car has become as important as wearing clothes daily. Every day we have to commute from work to home, from home to pick up the kids at school, from church to the grocery store, etc. The distance to these places is not often trackable, they require road means of transportation.
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Getting a public vehicle doesn’t always come easy and fanciful. If you are not careful, your fancy clothes might get stained or turned into the process of hustling for a vehicle seat with other passengers. All these reasons make it more necessary to buy your car ASAP. ‘But I really want a car. I don’t just have the money you say. Well, not having the money isn’t a deterrent to owning that dream car of yours, this is why bank auto-finance was made.
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Cars aren’t cheap like tomatoes, they require thousands of naira, even millions depending on the model, year, manufacturer, and if it’s a brand new or used car. This exorbitant amount of cars is what makes it difficult to own a car. But, you can share this burden of paying upfront for a car by taking advantage of this bank’s auto-car loan.
What You Need To Know/Have Before Taking A Bank Car Loan
- Bank auto loans are given to those who have an account with the loaning bank, either a current account or a savings account.
- You must have a job that pays you monthly at least. This is because, before any bank issues you a car loan, a bank statement is often requested. This shows your capability to pay back.
- You will be required to pay a percentage of the car amount upfront. The rest will be payable to the bank in instalments.
- Car loans attract an interest rate of instalment payback.
- Ensure you have a strategy to pay off your loan.
- You will need to have a proforma invoice. A proforma invoice is a draft invoice that shows that you have shown interest in the car and the car price.
- The vehicle papers will be held by the bank until you pay the full loan.
- Some banks require collateral security like lands, bonds, stocks, etc.
Also Read:
- How To Get Vehicle Finance In Nigeria – Top List Of Auto-Finance Companies
- Buy A Car And Pay In Monthly Installment Guide In Nigeria
- Car Hire Purchase In Nigeria Guide: List Of Car Hire Purchase Company
Here is a list of banks in Nigeria that offer car loans or vehicle finance:
First Bank
First Bank Nigeria offers car loans for both personal and corporate use. The requirement is that you have employment and an account with them. The car loan can only be used for purchasing brand-new cars from car dealers approved by First Bank.
Features of First Bank Car Loan
- Maximum loan amount of N15 million
- The maximum tenor is 48 months (4 years)
- A 20% equity contribution is required
- 22% interest rate
- Vehicles to be financed must be new and from FirstBank-approved vendors
- Salary domiciliation.
Benefits Attached
- A year of free car servicing or car serviced at 15,000km mileage (whichever comes first)
- Free fuel card available for 1 year
- Free car registration.
- 3 years manufacturer car warranty
Required Documents to get the car loan.
- Application letter
- Auto Loan application form
- Proforma Invoice from FirstBank approved vendors
- Current 3 months payslip
- Statement of account
- Letter of total emolument
Uba
United Bank Of Africa is another bank that offers affordable car loans to Nigerians. The Interest rate is not overwhelming.
To apply for a UBA auto loan,
- You will need a pro proforma invoice from car vendors approved by the bank.
- Fill out the loan application form for the desired car.
- Have a current or savings account with UBA.
- Have valid means of identification such as a passport, National Identification card etc.
- Undertake an oath to have a domiciled salary account with UBA.
- An ID card from your workplace.
UBA Car Loan Features & benefits
- Access to reputable auto dealers/retailers
- Convenient repayment terms; up to 48 months
- Competitive interest rate
- Maximum loan amount of N15m
- Minimum equity contribution of 30%
- Mandatory comprehensive insurance and vehicle tracking
UBA currently runs an auto-loans promo to purchase the Suzuki car brand. The promo offers customers the option to choose from a large option of cars, free vehicle registration, a convenient repayment plan etc.
FCMB Auto Loan
FCMB offers car loans for personal use only. Unlike most banks, where you have to be a salary earner, the FCMB auto loan allows flexibility for entrepreneurs to own a car. You just need to prove a bank statement that shows you are buoyant enough to repay the loan. Cars financed are those from vendors recognized by the bank.
FCMB Auto Loan Features
- Borrow N500,000.00 to N30,000,000.00
- Payment over 12 to 60 months
- Contribute as low as 20% towards the purchase
- Comprehensive Insurance on the car for the entire loan period
- No security required
- Competitive pricing and no hidden charges
FCMB Auto Loan Benefits
- Installation of free tracking device for auto valued at N3,000,000 and above
- Buy a car of your choice from our list of acceptable brands and spread payment over a convenient period
- We have reliable dealers accredited to ensure you buy from a safe source
- Convenient insurance payment included in the loan repayment amount
- No residual cost at the end of the loan
Access Bank
Access Bank is another popular bank in Nigeria that offers car finance to help Nigerians acquire their dream cars. One major car brand financed by Access Bank is Hyundai, due to its partnership with the manufacturers.
Popular Hyundai models customers can choose from include: – Hyundai Grand Accent
- Hyundai Accent
- Hyundai Elantra
- Hyundai Sonata
- Hyundai Creta
- Hyundai Tucson
- Hyundai Santa Fe
- Hyundai H 1
Features attached to the Access Bank Auto Loan include:
- Flexible payment plan for up to 3 years, with monthly repayment as low as NGN180,000
- Free vehicle registration
- Free vehicle delivery PAN Nigeria
- 5-year warranty or 100,000 km (whichever comes earlier)
Stanbic IBTC Vehicle And Asset Finance
Stanbic IBTC allows you to select any car of your choice from the bank’s authorized car vendors. All you need to access this loan to show proof of your income, have an account with Stanbic IBTC Bank and present a proforma invoice.
Stanbic IBTC Bank offers one of the most affordable and flexible car loan options.
Other features of the loan include:
- Flexible Payment Terms – with up to 4 years tenor for repayment
- Access to competitive interest rates
- Access to our comprehensive dealer/partner network to help you find your car
Other Banks in Nigeria that offer vehicle finance or auto loans with a flexible repayment plan and affordability include:
- Guaranty Trust Bank
- Zenith Bank.
- Fidelity Bank
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