Buy A Car And Pay In Monthly Installment Guide In Nigeria

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Let’s admit it; we all need a car, especially when you get to certain stages in your life, a car becomes a must-have. But you know, while we are all aware that we need one, we still don’t make the move to get that dream car. It’s not because we don’t know how to drive really (P.S, if you don’t know how to drive, find out a list of driving schools you can explore here), the major challenge is the fact that we often can’t afford to pay for a brand new car or even a fairly used one all at once.

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For a lot of people, our cash flow comes in monthly, or even if it doesn’t, it’s easier to calculate your income on a monthly basis. Well, that’s an advantage because you can easily pay for that dream car in monthly instalments; this implies not having the whole cash to pay for a car at once does not have to stop you from a car. Monthly instalment paying implies paying specific amounts over a period of months until you complete paying the entire cost of the car.

In today’s article, we bring you a guide on buying a car and making payments in monthly instalments in Nigeria.

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Where To Get Car for Monthly Instalment Option

You can’t always get an option to pay in monthly instalments everywhere. Broadly speaking, two major sources that can offer monthly instalment options are:

Get Financing from your car dealer

Some car dealers afford you the option to pay in monthly instalments. This means they become the lender while you become the borrower. In this instance, they offer you a payment plan such that you don’t have to pay for the car immediately, but depending on the cost of the car, the total cost is spread through the months (maybe 20-52months), till the selling price is paid with interest.

Check: How To Get A Car Loan In Nigeria – Top List Of Auto-Finance Companies

In this case, until you pay in full for the car, even though you flex around with the car, you don’t have total ownership or right to the car.

Lend Directly

When you lend directly, then the car dealers are not the ones offering financial aid, but rather you source for the cash, using a car loan from other places e.g banks, cooperative societies, etc. Hence, you enter into a financial agreement with the car loan source on how you will pay the money in full with interest.

Check out a list of car hire purchase companies that allows you to pay in instalments here

Buy A Car And Pay In Monthly
Buy A Car And Pay In Monthly

Factors That Affect Your Monthly Installment Payment/Plan

Down Payment

Down payment is the amount of money you pay out-rightly that covers the part of the cost of the car and signifies your commitment to fully purchase the car. The downpayment can represent any per cent of the overall cost of the car, it depends on the agreement between you and the lender.

For instance, if you are buying a brand new Honda Clarity which costs about #12 million, if the down payment is 20%, then you are paying #2.4million upfront. This means you are left with 9.6 million to complete the payment.

Now, the more the amount you pay as a down payment, the lesser the amount of money you have to pay as monthly instalments and vice versa.

Loan Term

The loan term refers to the total duration of time you are expected to pay the total amount. It varies depending on where you get the loan. either from a bank, a cooperative society, or a car dealer.

The longer the loan term, the longer the amount of time you have to pay up in monthly instalments.

Interest Rate

The interest rate is actually the cost or the extra money you have to pay for taking a car loan. The interest rate varies depending on the kind of car and the lender too. However, generally, the interest rates are usually better for new cars than fairly used ones.

The higher the interest rate, the more you have to pay in monthly instalments.

Monthly Installment

The amount you have to pay in monthly instalments depends on the interest rate, the cost of the car, and the estimated loan term.

How To Calculate Your Monthly Installment

The mathematics you need to calculate the amount you pay in monthly instalments is easy-peasy.

Using the example of the Honda Clarity above, after your down payment of #2.4million, the remaining #9.6million has to be paid over four years at a flat interest rate of 5% per annum.

  • Your total interest = interest rate/100 x loan amount x loan term
  • Your monthly interest = total interest / (loan term x 12)
  • Your monthly installment = (loan amount + total interest) / (loan term x 12)
  • Loan term= 4 years
  • Interest rate= 5%
  • Loan amount = #9.6 million
  • Total interest for 4 years= 5/100 X #9.6million X 4 = #1.92million
  • Your monthly interest = #1.92 million/ (4 X 12) = #40,000
  • Your monthly installment = (#9.6million + #1.92million) / (4 X 12) = #240, 000

You can apply this formula in paying for any car you desire to buy in monthly instalments.

Car loan companies in Nigeria

First Bank Nigeria – Auto Loan, Auto Loan & Finance

Applying for an automobile loan at First Bank Nigeria has been made easy as Both individuals and businesspersons can apply for an automobile loan from FirstBank and possibly receive up to 10 million Naira for a period of up to 4 years. You should have a salary account in FirstBank. Choose only the car dealer that is approved by this Nigerian bank and only a brand new vehicle. You’ll be asked to fill out the loan application form, prove that you have money for instalment payments (income), and visit the bank’s office.

Creditville Limited – Car Loan / Auto Lease

Creditville Ltd offers an auto loan that facilities individuals in paid employment in the form of asset finance towards the acquisition of a personal vehicle(s). The car we help you buy is solely for private use. The vehicle financing shall not be used for ANY commercial purpose. Ownership of the car bought ultimately transfers to the customer at the end of the facility tenor, subject to having met all prescribed repayment terms.

Access bank – Hyundai Auto Loan Promo

Customers shall be required to obtain a Pro forma invoice from Hyundai Motors addressed “Access Bank/Customer’s name”. The program supports only new cars and is willing to work with local businesses and individuals who have a salary account at this bank.

Affordable Cars Nigeria – CAR FINANCE SCHEME

The Affordable Cars easypay is a bank finance scheme based on instalment
payment arrangement which affords individuals and corporate entities the opportunity to buy cars of their choice without the need to pay the whole value at once.

This requires a deposit payment of 20% – 30% with the balance being spread over 12-48 months with interest at the prevailing lending rate.

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Conclusion

Now, you shouldn’t shy away from buying that car you have always wanted. The hassle of boarding a taxi and other public transport can be very terrible. You have the option to pay installmentally for that car you want to buy. You can check us out in carmart.ng or send us a mail at [email protected] to buy or sell your car.


Carmart Nigeria allows you to sell your car for the best price from the comfort of your home. Rather than hearing bad offers from dealers or adding a banner of "FOR SALE", let carmart Nigeria do all the heavy lifting for you, Upload the details of the car and get the best offer from interested buyers. www.carmart.ng

45 Comments

    • Joseph Obadiah Reply

      I am interested in 2009 Toyota Camry, Tokumbo, red or silver colour

  1. Mogaha joseph Reply

    Plz I’m so much interested in buying cause i want to use it for uber/bolt but the capital is not enough so plz this is my contact incase and i promise never to miss any payment.
    Thanks

    • I'm interested, I need a Toyota Corolla 2004-2006 for for Ubar in Ibadan. Reply

      Good evening sir, Imy name is Rabiu Bukola I hereby requesting for a Toyota Corolla 2004-2006 model in installments payment, I want to be using it for commercial (Ubar) in Ibadan.

  2. Oluponna Sunday Emmanuel Reply

    Please I need loan for Suzuki every tokunbo for transportation use

    • Please I need loan for Toyota Corolla 2004, though I have a little cash on me and i need to get the car to pay installment

    • Olagbenro olanike Reply

      Am interested, I want to buy Highland Toyota jeep
      2007 Model

  3. Please I’m so much interested i need loan to pay toyota corolla to give to my husband to run bolt around the city at cross river state (Calabar) I ended salary I will not filled to pay any amount giving to me to pay please here is my number 08132487985

  4. Please I can never miss any of the payment please I end salary I need a toyota corolla to give to my husband to run bolt in city of cross river state (Calabar)

  5. Ojelabi oluwatoyin james Reply

    I am interested in the car installment payment package, i need a Nigerian used Toyota Corolla

  6. I need a loan to buy car Toyota Corolla for Uber in Lagos State. My cell 09020910339

  7. Fasetire Segun Moses Reply

    I need a loan to buy a car for uber in Lagos
    My number is 08125204009

    • Sunday Afolabi Reply

      This offer looks pretty good if it comes to really relieve the masses and not add to their problems. Thanks

  8. Plwase I need an urgent car request,please would love to reached Lagos..08069740566

  9. Mhizta igodo Reply

    I need minibus, I promise never to miss my payment, am a student of federal polytechnic oko anambra state

  10. I mean Toyota sienna that will taking to my working place 08145072488

    • I need Toyota camry 2003 to 2009 model for bolt business on easy pay method. Thanks

  11. Friday Olawale Reply

    Please l need a car for business, from easybuy installment.

  12. Jeremiah iliya Reply

    I am interested I need a Sharon tokumbo bus for commercial runnings

  13. Salvation moses Reply

    I’m a salary earner and a business man;I need a tokumbo chevrolet 18 pers bus on easybuy installment.

  14. Salvation moses Reply

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  15. Daramola Opeyemi Reply

    I’m a salary earner, I need a new mini bus on monthly installmental payment around Calabar,thanks.

  16. Sunday Assian Reply

    Please sir, I just stopped my work, I need a 2005/2006 Toyota Corolla for Uber. I need it on hire purchase.

  17. Daniel emeka Reply

    My name is Daniel emeka I’m in need of a car for HP and I’m ready to obey your will any Toyota Corolla from 2005/2009 would be ok I stay at ikorodu Lagos please I’m ready to work and I’m willing to obey you please call or WhatsApp 09086728268

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