Car Hire Purchase – Owning your car should not be a case where you have to empty your bank accounts just to get a car, though a car is an expensive property. A lot of people have experienced bankruptcy just to pay for a car they need, and this should not be the case. As a result of this, a car hire purchase service should be used. Hire Purchase simply means buying a good or property and paying for it in instalments. You don’t have to pay for it at once, but the total money can be split into smaller part payments to allow ease of repayment.
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Many people dream of becoming car owners in Nigeria, but paying for a car in one sitting is a luxury especially knowing the economic situation Nigeria faces. So, what is the best way out of it? The best way out of it is by buying a car through the Car Hire Purchase method. The necessity of a car in Nigeria cannot be over-emphasized, because it is needed for daily commuting especially if you live in a city like Lagos in Nigeria.
If you are interested in learning about how to buy a car using the Car Hire Purchase method, then stick through this article to guide you.
First, what is a Car Hire Purchase?
Car Hire purchase, simply put, is a process where you buy a car with an agreed plan to repay the total money of the car over a period of months or years, depending on the agreement. Hire purchase is an approach to fund purchasing a new or utilized vehicle. You (generally) take care of a deposit and pay the estimation of the vehicle in regularly scheduled payments, with the loan made sure about against the vehicle. This implies you don’t claim the vehicle until the last instalment is made.
As a rule, you first need to put down a deposit on the vehicle you need to purchase. This is generally 10% or a greater amount of the vehicle’s value. The rest of the estimation of the vehicle will at that point be paid off in portions over a time of 12 to 60 months (one to five years). Hire purchase is orchestrated by the vehicle seller, yet online stores or physical stores likewise offer this service. The rates are serious for new vehicles, but less so for utilized vehicles. For recycled vehicles the yearly rate can shift from 4% – to 8%; the lower the number the better. The rate could be higher for instance since you don’t have a decent financial assessment.
The advantages of Car Hire purchase
- 1) Flexible reimbursement terms (from one to five years) to help fit in with your month-to-month financial plan.
- 2) Relatively low deposit is required (ordinarily 10% of the vehicle’s cost).
- 3) Fixed loan fees so you know precisely what you’re paying each month for the length of the term.
- 4) Once you’ve paid a large portion of the expense of the vehicle, you may have the option to restore it and not need to make additional instalments.
The disadvantages of Car Hire purchase
- 1) You don’t claim the vehicle until you’ve made your last instalment, which implies in the event that you get into money-related challenges the fund organization could remove it.
- 2) You can’t sell or adjust the vehicle over the agreement term without getting authorization first.
- 3) Your deposit and term length will influence your regularly scheduled instalments. Your regularly scheduled instalments are probably going to be higher the more modest the store is and the more limited the term of the credit.
- 4) Until you’ve paid a third of the aggregate sum payable the moneylender can repossess the vehicle without a court request.
- 5) It can be a costly course on the off chance that you just need a momentary understanding.
How to get the best Car Hire purchase deals
There are two main options here:
- Get the fund through the vendor you’re purchasing the vehicle from.
- Getting funds through an online merchant.
It’s necessary to look through online first so you’re outfitted with certain numbers to wrangle within vendors. Offers can fluctuate fundamentally on the internet and in businesses so getting more than one financial quote is of important.
To assist you with contrasting the various offers request vital information like:
- The APR you’ll be paying
- The aggregate sum repayable
- The complete expense of credit
- Any extra charges.
Independent dealership for Car Hire purchase
At the point when you purchase a vehicle, you’re probably going to go to either an independent vendor (one that is controlled by a business and will stock vehicles from numerous brands).
Independent sellers will have a more extensive selection of vehicles, as it’s a lot simpler for them to stock various producers. You’ll additionally discover generally recycled vehicles, which implies normal vehicles are less expensive. You won’t typically have the option to discover 0% account arrangements or enormous store commitment arrangements, and APR will associate with 5-10% – despite the fact that your credit record will influence the rate you’ll have the option to get.
Diversified vendors are the spot to go for another vehicle – despite the fact that recalled new vehicles lose their incentive because of devaluation rapidly.
List of Car Hire Purchase Companies in Nigeria
Some Car hire purchase companies around big cities in Nigeria include:
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
PUKENA Technologies Ltd
Pukena, Lekki Office
- 2nd Floor Providence House, Admiralty Way Lekki Phase 1
- Lagos, Nigeria
Pukena, Mainland Office
- 371 Borno Way, Spencer, Yaba, Lagos, Nigeria
- Email: [email protected]
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
The loan is secured against the vehicle. With a hire purchase agreement, you’re in a fixed contract.
the car will cost more.
Monthly payments are based on credit rating
It can be expensive for short-term agreements.
Missing or late payments could affect your credit score.
How hire purchase works. Usually, you’ll first need to put down a deposit on the car you want to buy. For most hire purchase agreements this will be 10% or more of the vehicle’s value. The rest of the value of the car will then be paid off in instalments over a period of 12 to 60 months (one to five years).
The key difference between a lease agreement and a hire purchase finance agreement is that at the end of a lease, you return the car and at the end of an hire purchase, meaning you have completely paid the agreeed hire purchase price, you take the car
A hire purchase agreement is a credit agreement. You hire an item (for example, a car, laptop or television) and pay an agreed amount in monthly payments. You do not own the item until you have made the final payment.
It is necessary to note that a Car Hire Purchase service is different from a car rental service. Also before deciding on the company you may want to use, it is important to conduct in-depth research on the mode of payment, interest rates, and all other necessary information.