More Nigerians opt for loans to buy cars as prices surge – Cars45

The surging prices of new, foreign-used, and Nigerian-used vehicles have left many Nigerians with no choice but to accept car loans as a sure means to buy cars.

Ojurongbe Damilola, head of Technical Services at Cars45, told journalists in an interview, that the concept of car financing has become more acceptable among Nigerians.

According to him, people are now more willing to consider vehicle loans as a viable option for buying cars, due to the financial burden it takes off them.

Damilola said there has been an increase in the financing of cars compared to previous times.

Explaining further, he said the market now offers a wide range of vehicles, including foreign used, Nigerian used, and more affordable brands.

He said that with the rising costs of foreign used cars, financiers are adapting their preferences. He said more financing companies are considering financing good quality Nigerian used cars as viable alternatives.

This variety, he said, now allows individuals to select vehicles that meet both their preferences and financial realities.

“Ideally, the increase in car prices without a corresponding increase in income should suggest otherwise as certain income brackets qualify individuals for car loans.

“We have seen a significant increase in the demand for car financing among Nigerians. This surge indicates a growing preference for flexible payment options to facilitate vehicle purchases,” Damilola said.

These changes, he said, reflect a dynamic adaptation within the vehicle financing sector to accommodate shifting market conditions and consumer preferences.

Citing an example, he said companies like Cars45 play a crucial role in inspecting and identifying quality used vehicles to mitigate loan defaults.

“At Cars45, we have expanded our financing solutions through strategic partnerships with financial institutions. This way, we can provide accessible and competitive options for our customers. Our goal is to ensure that every Nigerian has the opportunity to own their dream car without financial constraints,” he said.

With more financing companies entering the market, customers can now make their choices from a broader range of car loan providers. This increased competition among financiers has made financing more accessible to a larger segment of the population.

However, the recent Monetary Policy Committee meeting of the Central Bank that increased benchmark interest rates has increased concerns about how this will impact loan interest rates, including car loans.

Notwithstanding, Damilola said that consumers remain hopeful for favourable outcomes amidst these changes.