Even though a car is a costly piece of property, owning a car shouldn’t need you to deplete all of your savings. Many people have declared bankruptcy in order to purchase a necessary car, and this shouldn’t be the case. A car hire purchase service ought to be utilised as a result. Simply put, hire purchase refers to purchasing a good or piece of property and paying for it over time. Instead of having to pay the entire amount at once, you can break it up into smaller installments to make repayment simpler.
In Nigeria, many people aspire to purchase a car, but doing so outright is a luxury, especially given the country’s precarious economic status. What is the greatest approach to get out of it then? The ideal solution is to purchase a vehicle using the Car Hire Purchase procedure. It is impossible to overstate the importance of owning a car in Nigeria because daily commuting requires one, particularly if you live in a large metropolis like Lagos.
Continue reading this article for guidance if you’re interested in learning how to purchase an automobile utilizing the car hire purchase technique.
A car hire purchase is what?
Simply defined, a car hire purchase method involves purchasing a vehicle with a pre-arranged plan to pay off the whole amount of the vehicle over a period of months or years, depending on the agreement. A method of financing the purchase of a new or used automobile is through hire purchase. With the loan secured against the vehicle, you (usually) take care of a deposit and pay the estimated value of the vehicle in regularly scheduled payments. This implies that you wait to claim the car until the final payment is received.
Typically, you must first make a deposit on the car you want to buy. Typically, this represents 10% or more of the car’s value. After then, the balance of the vehicle’s price will be repaid in installments over a period of 12 to 60 months (one to five years). The car vendor arranges the hire purchase, however internet shops or physical stores also provide this service. The rates are severe for brand-new cars, but not as much for used cars. The annual rate for recycled vehicles can range from 4% to 8%; the lower the number, the better. For example, the rate can be greater given your lack of a reliable financial assessment.
- 1 The benefits of car rental purchases
- 2 The drawbacks of car rental purchases
- 3 How to find the best prices on car rentals
- 4 Independent dealership for the acquisition of a vehicle
- 5 List of Nigerian Car Hire Companies
- 6 Lecon Financial Services Limited
- 7 PUKENA Technologies Ltd
- 8 Citrans Global Limited
- 9 Rhezon Car Rental
- 10 Jimak Tactiq Integrated Services Limited
- 11 C & I Leasing PLC
- 12 Gabrich Group
- 13 Gbovo Transport
- 14 Summary
- 15 Related
The benefits of car rental purchases
1) Flexible repayment terms (from one to five years) to better accommodate your monthly budget.
2) Only a little down payment is necessary (often 10% of the vehicle’s cost).
3) Fixed loan fees ensure that you are aware of the amount you will be paying each month for the duration of the loan.
4) After paying a significant percentage of the vehicle’s cost, you might have the choice of restoring it and forgoing further payments.
The drawbacks of car rental purchases
1) Since you cannot claim the vehicle until you have paid your final installment, the fund organization may take it away if you run into financial difficulties.
2) You cannot modify or sell the vehicle during the length of the contract without first receiving permission.
3) Your regularly scheduled instalments will depend on your deposit and term duration. The more modest the store is and the shorter the credit period, the greater your regular monthly payments will likely be.
4) The moneylender may take back the vehicle without a court order until you have paid a third of the total amount due.
5) Even if you only require a quick knowledge, the training can be expensive.
How to find the best prices on car rentals
There are basically two choices here:
- Get the money from the company you’re buying the car from.
- obtaining money from an internet retailer.
To prepare yourself with specific numbers to haggle with suppliers, you must first search online. Obtaining multiple financial quotes is crucial because offers on the internet and in businesses might change significantly.
To help you compare the various offers, request crucial details like:
- The APR you’ll be paying
- The aggregate sum repayable
- The complete expense of credit
- Any extra charges.
Independent dealership for the acquisition of a vehicle
When buying a car, you’ll likely visit either an independent dealer or a dealership (one that is controlled by a business and will stock vehicles from numerous brands).
Independent dealers will stock a wider range of manufacturers because it is much easier for them to do so. Additionally, you can get commonly recycled cars, which means that regular cars are less expensive. Although your credit history will have an impact on the rate you can acquire, you won’t normally have the choice to find 0% account arrangements or massive shop commitment agreements. Instead, the APR will typically be in the area of 5–10%.
Diversified vendors are the best place to shop for a new car, despite the fact that recalled new cars lose their appeal due to rapid depreciation.
List of Nigerian Car Hire Companies
Some car hiring firms in Nigeria’s major cities include:
Pukena, Mainland Office
- 371 Borno Way, Spencer, Yaba, Lagos, Nigeria
- Email: firstname.lastname@example.org
Lecon Financial Services Limited
- Contact: +23496708714 or +23498700853
- Address: 256, Zone AO, off Herbert Macaulay Way, behind Unity Bank building, Central Business district, Abuja FCT
PUKENA Technologies Ltd
Pukena, Lekki Office
- 2nd Floor Providence House, Admiralty Way Lekki Phase 1
- Lagos, Nigeria
Citrans Global Limited
- Contact: 07000733222
- Address: 72 Otunba Adetoro Drive, Off Lekki Beach, Lekki, Lagos
Rhezon Car Rental
- Contact: +2348039662017
- Address: 1 Aguiyi Ironsi St, Maitama 900271, Abuja, Nigeria
Jimak Tactiq Integrated Services Limited
- Contact: +2348096000112
- Address: No 6 Bolton street Suncity Estate, Abuja, Nigeria
C & I Leasing PLC
- Contact: +23498705633
- Address: Suite 17, 4th Floor, Metro Plaza, Zakariya Maimalari Street, Central Business District, Abuja, FCT
- Registration No. 1815026 and Tax Identification No. 23961967-0001
- Address: No 32 aina ijayi estate, Ekoro Rd, Abule Egba, Lagos
- Phone: 0706 237 1791
It is important to understand the distinction between a car hire purchase service and a rental automobile service. Additionally, it’s critical to complete comprehensive study on the payment method, interest rates, and all other pertinent information before settling on the business you would want to hire.