|Hire Purchase options in Nigeria
Are you in need of a car but don't have the funds to buy one outright? Hire purchase may be a great option for you. This type of financing agreement allows you to pay for a car in installments over a period of time, making it easier to afford the car you need. I often get calls from drivers looking to work on Uber, Bolt, Indrive (formerly Indriver), Rida and others asking about how to get a car to start work. Hire purchase agreement is a great way to enter the business at a lower cost and you have the ambition of ensuring the car becomes yours after completing all your installments. If you are hardworking and focused, this is totally achievable.
If you're considering getting a car on hire purchase in Nigeria, there are a few things to keep in mind. First, you'll need to decide on the type of car you want and the budget you have available. It's important to choose a car that meets your needs and fits your budget to ensure that you can afford the monthly payments.
Once you've decided on the car and the terms of the hire purchase agreement, it's time to find a lender. There are many lenders in Nigeria that offer hire purchase agreements, including banks, car dealerships, and independent financing companies. It's important to shop around and compare the different options to find the best deal for your needs.
Some reputable companies providing Hire Purchase services in Nigeria include:
Jaiz Bank Plc: Jaiz Bank is a bank that offers ethical financing and they offers hire purchase agreements for cars, trucks, and other vehicles. They offer flexible repayment terms of up to four years and financing is based on the concept of cost plus mark-up. The Bank purchases the vehicle and sells to the customer with reasonable markup (otherwise called profit) on a deferred payment basis.
Lotus Bank Plc: Lotus Bank is another bank that offers ethical financing and they offers hire purchase agreements for cars. They offer flexible repayment terms of up to five years and financing is available for buying a brand-new car or a fairly used car. You must be between 24-50 years old to be considered.
based on the concept of cost plus mark-up. The Bank purchases the vehicle and sells to the customer with reasonable markup (otherwise called profit) on a deferred payment basis.
Cars45: Cars45 is a popular car dealership in Nigeria that offers hire purchase agreements for both new and used cars. They offer quick approval and flexible repayment terms.
Sterling Alternative Finance (SAF): SAF is the ethical banking subsidiary of Sterling Bank and they have quite a flexible approach to car financing. They add a mark-up to the purchase price. Currently, the mark-up is at 27% and the time of repayment for the car financed depends on the kind of car your purchase:
- Brand new vehicle – Pay over 5 years.
- Foreign used vehicle – Pay over 4 years.
- Locally used vehicle – Pay over 3 years
Once you've found a lender and agreed on the terms of the hire purchase agreement, you'll need to provide the necessary documents, including proof of income, proof of address, and proof of identity. You'll also need to provide the lender with the details of the car you're purchasing.
Once your hire purchase agreement is approved, you'll be able to take delivery of the car and start making your monthly payments. It's important to make sure that you make your payments on time and in full to avoid any additional charges or penalties.
In conclusion, getting a car on hire purchase in Nigeria can be a great option for those who need a car but don't have the funds to buy one outright. By choosing the right car, lender, and terms, you can get the car you need and spread the cost over a longer period. With the variety of lenders available in Nigeria, you can find the best hire purchase agreement for your needs and budget.