Car Financing In Kenya: Is it Worth The Extra Cost?

By Soko Directory Team / Published May 17, 2023 | 7:51 am

When it comes to buying a car, buyers are often faced with the dilemma of whether to look for car financing or save up and make a cash purchase.

While both options have their pros and cons, financing offers several benefits that can help buyers get a car without breaking their banks while building their credit.

On the other hand, cash buyers who have enough money at their disposal, get to enjoy instant gratification without any loans hanging over their heads.

One of the most significant advantages of financing a car is the opportunity to build credit. When buyers take out a car loan and make regular payments on time, they demonstrate their ability to manage debt responsibly. This can help improve their credit score, making it easier to obtain more loans or credit in the future. Cash purchases, on the other hand, do not offer an opportunity to build credit, as there is no loan or repayment involved.

If you are ambitious and have several targets on your list, financing frees up your money to focus on other goals. Instead of using a significant portion of savings to buy a car outright, buyers can use their cash for other important expenses, such as home improvements, education plans, medical insurance, or setting up an emergency fund. Financing allows buyers to spread the cost of the car over time, making it easier to manage their finances and achieve their financial goals.

“Financing a car can be a smart financial decision if you look at it from a wider angle. Not only does it help build credit, but it also frees up cash for other important expenses and allows buyers to get the car they want without compromising on quality. At Autochek Kenya, we prioritize the safety and quality of the vehicles we finance, ensuring that our customers get reliable cars that meet their needs.” – Nickson Leshan, Senior Credit and Underwriting Manager at Autochek Kenya.

Financing also provides an opportunity to get a high-quality car. Financiers like Autochek Kenya do thorough checks on the car and actually share an inspection certificate before putting their money on it, ensuring that the car is of high quality and in good condition. This provides buyers with peace of mind knowing that they are purchasing a reliable vehicle. In contrast, cash buyers may not have the expertise to assess the car’s quality thoroughly, making it difficult to determine whether it is a good investment or not. Most will have to rely on a third party to carry out the inspection which at times may be compromised.

Moreover, financing with a reliable lender allows buyers to make manageable installment payments. With flexible repayment terms, buyers can choose a payment schedule that suits their needs, making it easier to budget and manage their finances.

Financing also enables buyers to get the car they like, rather than what they can afford at the moment. With financing, buyers are not limited by the amount of savings they have, which can limit their choices. They can choose a car that meets their needs and preferences, regardless of the upfront cost. Autochek offers up to 80% financing leaving the buyer to only raise a manageable down payment.

Another advantage of financing is that it helps buyers get the car they want quickly. With a lender like Autochek Kenya, buyers can get the car they want in just three working days. This is particularly beneficial for buyers who need a car urgently and do not have the time to wait until they reach their savings limit.

While cash buyers will have to take on unknown costs like inspection, installing a tracker, and buying insurance out of their already dented pockets, those opting to pick financing will get all these done for them with all these merged in the loan facility. All these benefits will be accessible from a reputable financing company while the buyer enjoys additional benefits, such as competitive interest rates, affordable repayment terms, and pre-inspected cars that are of high quality.

Cash purchase on a car is ideal for those with a good disposable income while getting financing offers an opportunity to not only build credit but also fuel the buyers’ other financial goals. By choosing a reliable lender like Autochek Kenya, buyers can enjoy additional benefits, such as getting the car they want quickly and with a pre-purchase inspection that ensures the vehicle is in good condition.

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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