With the country’s economic situation, everyone is looking for additional means to earn money. Uber driving or cab-hailing services is one of the most lucrative full-time or side-income hustles to engage in. But, for many Nigerians, the challenge is in having a car for the business.
One of the easiest ways to get a car to start your ride-hailing business is by getting car loans. While car loans are debts, including debts are often wise financial decisions. To decide the type of car loan you take, you need to have a purpose for that car, have a repayment strategy in place and how much income the car can bring in.
Once you can ascertain these, you’ll also need to know some of the advantages you can get from choosing a car loan. Some of them include;
Easier Access To Fund Your Car Goal
The challenge of wanting to start a side business without having a car is frustrating. What car loans give you is the opportunity to finance your goal.
Without the required car, it’s impossible to do a ride-business. But with a car loan from a trust or reliable source, you’ll start your business immediately.
No Extra Collateral
An interesting thing about getting a car loan is that there’s no extra collateral you’ll need to present. The reason is that the car you’ve used the money to buy has enough collateral.
Once you default in payment, the lender only needs to take back the car and recover their money. Hence, you’ll not be required to bring additional collateral.
Builds Healthy Credit History
Building a strong credit history is essential for anyone going into business. With your car loan, you can easily build a reputable credit history that lets lenders loan you money whenever you need it.
Also, note that healthy credit history does not just manifest, it comes depending on how active you stay with repaying your car loan.
Related:
- Car Loan in Nigeria 2022: How does Car financing work – Top List of Car Finance Companies
- How Does Auto Loan Work in Nigeria: How To Get Auto Financing Quick Approval
- How To Calculate Auto Loan Payment In Nigeria
Access To A New Car
Instead of going through the trouble of buying a used car that might develop faults tomorrow and affect your business, with a car loan, you can easily purchase a brand new car that’ll serve you longer and better.
Additional Value
Most car loans come with additional perks from the lender. There are lenders that offer free car insurance for a certain length of time or reduced payment interest for those who need car loans.
Most car loan lenders give borrowers up to 5 to 6 years to pay back their loans.
Conclusion
Certainly, taking out a car loan is a financial risk. But, once you’ve considered your solid reason, the business you’ll be doing with the car and your repayment pattern, it’s always advisable to go for car loans.
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