installment ke?
which address you wan find guyman go?
G's wey dey move around like fish.

davidif:

Why don't you save money and buy the car instead of living in debt. Nigerians and there materialism sha.

are you saying this is akin to Nigerians alone?
Most of the people in the West live virtually on credit. Cars, houses etc. . .
Can't just understand how some people manage to narrow every and any issue down to nationality.


Don't buy what you cannot pay for. C'est fini.

There was a post by inspired and chiangel earlier this year when they were giving nlander choice of installmental payments plans through a company.

Look for the post and it might still be possible.

You agree with me that is not about driving luxury cars.
it's about helping people realise their dreams of owing a car.

Mind you , dealers keep cars over a year or more b4 they get a buyer.
Remember, that's what our lecturers called DEPRECIATION.

so, instead of keeping them for years , while guys save to buy.
they could sell these cars with e.g 50% cash down and 50% installmental. or
60% cashdown 40% installmental or
70% cashdown or 30% installmetal e.t.c

This is will go along way in reducing the risk involved with the NIGERIAN FACTOR of buyers defaulting.

You see, it 's about help each other.
i'm not in support of 100% installment.

you also agree with me that banks are reaping where they have sowed.

My Opinion:
I would advise that the Auto Industry come up with a list of approved "stable and reliable"companies (comprising all kinds of businesses and from all the sectors of the economy) and offer this installmental payment plan to their staff who have served for at least 3years with the company. Also the payment spread should be extended to 7yrs so as to reduce the effect on the buyer.

Why I think this will work:
Because every reliable and stable company has a condition of service for her employees and the bulk of the wealth of a worker lies in his/her gratuity. In the event that the worker is fired, his/her gratuity will be used to settle the remainder of the bills.

How this will work:
The auto industry association in Nigeria should first come up with their standards of approval of companies with which any subscribing company can be stress tested. These standards must be specific to each sector of the economy. So for example, the standards for stress testing or assessing companies that fall into the oil and gas sector will be different from that of companies that fall into the Health sector and so on.

Put yourself in the Auto seller's shoes:
Would you want to sell 1000 cars to 1000 people working in companies that cannot even afford to pay them their monthly wages, some companies owe up to three months unpaid wages.

Would you sell a car on a credit basis to a person who earns N20,000 a month. How can he cope with the deductions?

This is my input and Im inviting people who reason constructively and purposefully to comment.

Installmental payment for cars available in most leading banks but you have to make a down payment of about 25% of the cost of the car. And you must have a good job to convince the bank that you can pay the balance usually over a period of 24 months.

@pito,

Do you think, it's has easy as you think?!

Nigeria is a cash and carry economy and to an extent this has been very wonderful. the credit crisis witnessed last year affected more of the western world due to their credit and debit card lifestyle.

Somehow, inspirational economy also favors cash and carry. it prevents greed and makes people live within their means. so my take on this one is wait until you have enough then buy one.

Nigeria is a cash and carry economy and to an extent this has been very wonderful. the credit crisis witnessed last year affected more of the western world due to their credit and debit card lifestyle.
Somehow, inspirational economy also favors cash and carry. it prevents greed and makes people live within their means. so my take on this one is wait until you have enough then buy one.

I have being going thru this thread and I still could not believe that 9ijas still do not understand the role of credit in the economy

There are 3 major types of credit - Trade credit, Export Credit and Consumer credit.
But I will talk about the role of consumer credit as this is more relevant to the subject above

Consumer credit stimulates long term demand for housing, cars, consumer goods and services. The provision of consumer credit (e.g for cars) will enable the consumer to make the purchase earlier that would otherwise be possible by saving to accumulate sufficient cash from earnings. Consumer credit can be viewed as the anticipation by future of future earnings.

However in the case of nigeria there is a key factor that can work fundamentally against the provision of credit

1. Trust - trust b/w the buyer and seller is key. The seller of the goods should be confident that the customer has both the intention to pay and the ability to do so. Therefore it is crucial that the provision of granting the credit is backed by establishing the capacity and character of the customer
Character - the intention to pay. Capacity - Financial ability to do so.

In the so called developed world it is inconceivable nowadays for any business with company customers to operate without granting credit.
Credit provides a stable market for industries like Motors,Housing and high end purchases. without credit, vehicle manufacturers would not be able to plan their production programmes with certainy. The provision of credit enhances the budgetory process and makes it much easier to predict demand. The provision of credit facilitates continuous production, which lowers production cost, which in turn increases profitability.

So basically, the provision of credit will enable the Motor detailers to increase sales hence increasing profit. In a case like nigeria where the risk of
defaults may be high. The interest rate calculation will be charged based on the risk involved. The key factor is to make a sale and making sure
the risk involved are well managed.

I am relocating to 9ija nxt year. and will be setting up shop offering credit terms to a target market. The potential is enormous.

I will keep ya all posted.

To me new  car am using QQ6 ( CHEERY MOTOR) 1.6 engine. cost 1.5m finance by Diamond bank.
i drop 20% innitial payment . 1% mgt fee no processing fee since my  salary account is domicile in the bank, 5% comprehensive insurance fee on the tall value of the car i.e 1.5m, intrest rate 21% flat  payable 48month

Analysis,
20% 0f 1.5m = 300k- 1.5m=1.2m to be finance back bank
insur 5% of 1.5m = 75k ( payable on reducing balance as the car depreciate 4yrs)
mgt fee 1% of 1.2m =12,000
 total money to pay as inintial deposit ( 300k +75k+12k) =387k

monthy payment
int=1.2m*21%= 252k  
 1.2m + 252k  = 1,452,000/48month=N 30,250 ( MONTHLY PAYMENT for 48month) flat
insurance 5% on reducing balance i.e 75k / 48mnth =N1,562.5 MONTHLY FOR 4YRS

guys, with this analysis and couple with the advantage of a new car expecially working in Island ,(passing thru 3rd mainland bridge) when u will see tokunbo car which ever grade u call it fucking up in the holdup, fare of area boys,criminals etc. with new car and regular service u are sure of ur safety 247
No visit to ladipo, rather u go to the coy direct to service the car, the good thing about new car is the cost of service
just with 9k for ever 4month which u can plan for.
for the past 9month that i have been using my QQ6  no story, i have service 2 twices another

initialy i wanted to buy tokunbo i collected car loan 500k, i have a pesonal  saving 520k
i was about going to Kotonu, i went to my bank to collect the money , my accout officer thouht i want to move the money to another account , she now advice me to take the car facility since i have all the require paper .
i pay deposit of 400k into my account and fixed the balance in Integrated micro finance bank with 5.3% interest every six month (600k *5.3) =31,800 every six month.
In the light of the analysis above , guys u will agree with me that new car is better that tokunbo on installmental payment, thinks guys

noted, the analysis and instalmental pay method is for people with regular monthly income.
cos i cant imagine having 3million in my account and give it out on a car just like that when i can actually invest the money and used the return monthy to pay for my instalmental car facilities guys be wise

NA BY FORCE TO BUY BIG CAR??Everybody get size ooo.If u cant afford it then dont grow grey hair thinkin of how to meet up in order to impress.The main reason u should own a car is to get around in a decent car no matter how small.Once ur car has a nice deck,a/c tight alloy wheels and a tight engine what more do u need.Buy a car u can afford to own and maintain.

I have being going thru this thread and I still could not believe that 9ijas still do not understand the role of credit in the economy

There are 3 major types of credit - Trade credit, Export Credit and Consumer credit.
But I will talk about the role of consumer credit as this is more relevant to the subject above

Consumer credit stimulates long term demand for housing, cars, consumer goods and services. The provision of consumer credit (e.g for cars) will enable the consumer to make the purchase earlier that would otherwise be possible by saving to accumulate sufficient cash from earnings. Consumer credit can be viewed as the anticipation  by future of future earnings.

However in the case of nigeria there is  a key factor that can work fundamentally against the provision of credit

1. Trust - trust b/w the buyer and seller is key. The seller of the goods should be confident that the customer has both the intention to pay and the ability to do so. Therefore it is crucial that the provision of granting the credit is backed by establishing the capacity and character of the customer
Character - the intention to pay. Capacity - Financial ability to do so.

In the so called developed world it is inconceivable nowadays for any business with company customers to operate without granting credit.
Credit provides a stable market for industries like Motors,Housing and high end purchases. without credit, vehicle manufacturers would not be able to plan their production programmes with certainy. The provision of credit enhances the budgetory process and makes it much easier to predict demand. The provision of credit facilitates continuous production, which lowers production cost, which in turn increases profitability.

So basically, the provision of credit will enable the Motor detailers to increase sales hence increasing profit. In a case like nigeria where the risk of
defaults may be high. The interest rate calculation will be charged based on the risk involved. The key factor is to make a sale and making sure
the risk involved are well managed.

I am relocating to 9ija nxt year. and will be  setting up shop offering credit terms to a target market. The potential is enormous.

I will keep ya all posted. 

Behind bobo:

NA BY FORCE TO BUY BIG CAR??Everybody get size ooo.If u cant afford it then dont grow grey hair thinkin of how to meet up in order to impress.The main reason u should own a car is to get around in a decent car no matter how small.Once your car has a nice deck,a/c tight alloy wheels and a tight engine what more do u need.Buy a car u can afford to own and maintain.

Well said. Why its hard for ppl to understand is beyond me. Credit is a good thing. However its a double edge sword. Once you get it, you are under pressure to pay up or meet up. Only in Nigeria ppl take loans without the plan of paying back.

Kunle-A:

Well said. Why its hard for ppl to understand is beyond me. Credit is a good thing. However its a double edge sword. Once you get it, you are under pressure to pay up or meet up. Only in Nigeria ppl take loans without the plan of paying back.

@ Kunle-A,
Well said.

That's why you find it difficult to find a car leasing company that lease vehicles to individual in Nigeria.
Not to talk of installment payment.

i dont work in a bank but oil and gas company, ordrecgroup.(www.ordrecgroup.com)
my banker encourage me to buy new car and the bank  finance it ,
if u have  a regular pay job , meet with the marketers in your  bank to work it out its flexible, imagine paying 31,565k monthly for 48month rather than paying 1.5m at a go, even if i have the cash i would rather invest the money ( fixed deposit in a micro finance bank with interest )  and take facilities.
i earn monthly 152k - 31k car loan deduction = 121k take home this is enought for me for the rest of the month
Quote from: Kunle-A on Today at 04:32:02 PM
Well said. Why its hard for ppl to understand is beyond me. Credit is a good thing. However its a double edge sword. Once you get it, you are under pressure to pay up or meet up. Only in Nigeria ppl take loans without the plan of paying back. 
@ Kunle-A,
Well said.

That's why you find it difficult to find a car leasing company that lease vehicles to individual in Nigeria.
Not to talk of installment payment.


kunle if u have a regular pay job see your maketers in your bank, they will give u Auto loan facilties

The idea is a great idea for nigerians who can be able to make the payments.

Do you know that credit in itself built the US?

But it also be a falling factor when you borrow too much.

They need to have a standardized Id system, something traceable and indivdualized like a Social Security Number.


While that is very much unlikely, then Bank loan would be only feasible.

platinumnk:

The idea is a great idea for nigerians who can be able to make the payments.

Do you know that credit in itself built the US?

But it also be a falling factor when you borrow too much.

They need to have a standardized Id system, something traceable and indivdualized like a Social Security Number.


While that is very much unlikely, then Bank loan would be only feasible.

Almost nothing works in Naija. With all good intentions, i can guarantee u that it will be compromised in no time. ATM cards supposed to give people ease in banking. At least thats how it works in the US, but ppl have lost their money in Naija even when they have their ATM cards with them. Th culprits? Some Bankers themselves

Whenever a system is set up, Naijas always look for ways to circumvent it. No investor will put his/her $$$ in a system like that. Why/How people take millions in loans with no collateral? Now banks are crying Whose fault is that?

shhhhhhhhhh, which one be this again? can't people cut their suits according to their cloths size again? just been wondering what the problem is with this generation.
confusion everywhere?
Thank God for people like Usain Bolt , who can make it to their office of 100meters in just 9.58 seconds

Bros save money and buy car.

if u want a good tokunbo it cost 700k for how long will it take u to save 7ook? asuming u are earning more than 100k it take u 14 month 1 yr 2month assuming u save 50k monthly , when u can actually own a new car with less than 400k and pay 22k monthly for kia pincato. for 3yrs, it is not easy to save money now in nigeria execept u invest ur money it , technology make life flexible , most of the 80% of the new car in nigeria road are of Auto loan car, pray to get a good job so that u can afford a new car,
u cant even visit LG with ur postdated check with ur bankers and collect electronics,

are you saying this is akin to Nigerians alone?
Most of the people in the West live virtually on credit. Cars, houses etc. . .
Can't just understand how some people manage to narrow every and any issue down to nationality.


Don't buy what you cannot pay for. C'est fini.

FBS
Isn't that the source of there problems now? this guys have over-leveraged themselves and see there situation now. All a result of greed.

Why on earth would I save up for everything I want to buy until I have all the money and them pay in full when I can get credit. NO WAY. Well different strokes for different folks I guess but I have no problem getting credit and spreading payment. It works for amd i achieve alot more. I bought my flat for 8.5 million in 2005. I payed 20% (1.7M), some other charges and spread the rest. Its 2009 and i can assure you i would still have been saving up for a flat that now goes for 13M. I bought my car on credit and my wife bought her car on credit. All I do is make sure that not more than 40% of my income goes to servicing debt. I should pay the last installment for my car in Feb 2010 and intend to buy two trucks with bank finance. Like i said, different strkes for different folks but it works fine for me!

Well different strokes for different folks I guess

simple answer is that you GUYS are too dishonest. not all of you but too many of you. because they do installment pay for regular guys in ghana. but you naija people MAYGOD HELP US ALL.

The much needed thread on this forum,nice one!

This would have been a good idea.. In advanced countries its what they do.. most of the citizens don't pay for full price for cars but yet they drive any car they want.. just pay monthly over a period. Some even pay for a period of 5 years.. and if they happen to sell the car along the line.. the buyer continues the payment. But let's be real.. we are not yet ready for this in NIgeria.. a country where most people don't even pay tax. In advanced countries, there is what is called credit score. They check ur credit score with ur social security number and determine the amount of loan u are eligible to. With ur social security number they are all ur information so u have no where to run to.. everything is computerized.

In Nigeria I can make a fake drivers license or passport and use it to open a bank account. I can get a fake PHCN bill or Water Bill and present to my bank as my address. So before this can work in Nigeria we need to have a good identity structure. Until then.. there is no way this can work or else dealers will be running allover the place for run away buyers. I can walk to a dealer with fake documents and purchase a car on installmental payment.. say in Lagos. Then next thing I relocate to Port Harcourt and the dealer will never find me. I would close my bank acct that I opened with a fake Id lol.

One of the things I missed about Nigeria is the lack of credit. I personally believe that it breeds future wealth.

OP, please save up and buy in cash as much as you can especially for depreciating items like most cars.

My daily driver is a 1992 190e. I'll rather have that as well as my money earning money in investment account than trying to impress people with a depreciating asset.

Fhemmmy:
It would have been a good idea if the following are possible.
trust.
Good database of the buyer { in Nigeria a man can move and no one will know the new address} and who has the time to be chasing someone all over the place.
If the person refuse to pay on a car all cos he/she has had an accident with the ride, then, what is next, no car to repo and nothing to take from the person.
How do i even know the the paper you apply with to get the car are real?
Nigeria is yet to develop to that level and till then, Let banks worry about the wahala of giving the loan.
A place where you tell someone to pay more than the usual price of the car, cos of the investment of the installment payment and the person go dey yab your mama and papa.
In a nation where everyone thinks they sabi it all, and know how much they buy car in the USA and can tell you the streets in NY without leaving the village, how do u deal with such people?

Kindly reachout to me on 08116307400.