We all know that the main purpose of a car is to take us from point A to point B. So not owning one can make movement sometimes tedious, especially in cities where the public system of transportation isn’t all that great. Commuting to work daily in a busy city using public transport often times leaves nothing to be desired. You are just at the mercy of the elements.
You want to commute to work in your own car and kiss public transport goodbye? Take road trips on your own terms? Want to don that very bright and colourful outfit without fearing someone or something putting stains on it on a bus? Or simply want to let people know that your “level has changed” If your answer is a YES! but you do not want to pay for a car outright? Then you should be looking to take a loan. Here are 6 things to put into consideration before taking a car loan.
1. Purpose
Before filling out that loan application form for that car, you should have a reason or reasons you want to own a car. It could be to commute to work, for ease of movement and comfort for business (ride-hailing services like Uber or Bolt) road trips or just a status symbol (you have arrived- Wink) As mentioned earlier. The use for such vehicle should be a factor when considering the vehicle brand and model. Whatever your reason, however personal, just make sure you are convinced you need a car.
2. Income
How much you earn and how creditworthy you are should definitely be top in the hierarchy of things to consider before taking a car loan. Can your earnings support the equity contribution and interest payments without taking a big hit? A wise decision will be to go for cars within your tax bracket or better still a loan plan with a reasonable equity contribution. With as low as 30% equity contribution and car finance to the maximum tune of N15m, you will be well on your way to owning a car courtesy UBA Auto Loan.
3. Budget
Now that you can feel it in your core that you need a car, It’s time to get down to the business of “how much you got” and are willing to spend without breaking the bank. How much you are willing to spend in total will determine the kind of car you will get. If your budget is tight then, you should certainly be looking for a loan plan that fits within your budget.
4. Interest Rate
You definitely want to pay attention to this because this is the catch. You should always look out for interest rates that are the best you can get out there. A high interest rate oftentimes makes repayment tiring. Trust me regret is the last thing you want to have on your mind after taking out a loan. UBA’s competitive interest rate doesn’t leave you with palpitations when payment is due.
5.Repayment plan
Nothing beats a flexible repayment plan when it comes to auto loans. UBA’s repayment plan puts the “f” in flexible. Rest assured, our 48-month repayment plan makes it easy on your bank account. With how wide the payment is spread, you can still carry out other financial obligations while servicing your loan.
6. Insurance
This isn’t even an option but a must! Accidents can sometimes occur and you do not want to be involved in one of those shouting contests on the road. What happens when your car is bashed? Show some class, walk away and let your insurance do the talking.
Read Also: 5 Things to Consider Before Buying a Car
How to Apply for UBA Auto Loan
Follow these easy steps to get an Auto loan from UBA;
· Functional savings or current salary account
· Duly completed loan application form
· Valid means of Identification (International Passport, National Driver’s Licence, National ID Card and Voter Card.
· Employer’s undertaking to domicile salary with UBA.
· Duly executed Letter of Awareness.
· Copy of the customer’s staff ID.
· Visit any of the bank’s approved auto vendor stores to obtain pro-forma invoice (PFI) for your preferred car.
· Visit a UBA branch or contact your Relationship Officer to complete a loan application form and initiate your request.
· Execute an offer letter detailing the loan terms and requirements, upon approval of the loan.
· Pick up your preferred automobile from the auto vendor.
