Having transportation is necessary in this day and age as commuting from one place to another is necessary to take advantage of opportunities. Using public transportation is one way to do so, but you may have experienced how it can take time and be quite frustrating. Having your own car can make commuting a lot easier since you can drive comfortably and do so on your own terms. However, the challenge is that buying a car is expensive, and not everyone has that money lying around. It can also take a long time to accumulate that money through your job, especially if you are a salaried employee.
This is why a car loan can be a great option, as you can own a car while paying back the loan and interest. However, not everyone understands the various intricacies of the application process, and one of these is the reasons to provide when applying for one. This article will discuss the 5 best reasons to give when applying for any car loan.
What are the best reasons to give when applying for a car loan?
1. You need transportation for your job.
There is a paradox that is quite common with people who are in need of a car. To get to their job, they need a car, but to get a car, they need their job. Such a situation can be pretty frustrating and can make anyone feel staggered. This situation is easily fixable with a car loan and can be open with the lending company. They will be reasonably likely to provide you with a car loan for such a reason.
If they provide you with the loan, you will be able to commute to your job and get a stable income that you can then pay them back with alongside the interest. Having a job has less perceived risk for the lending company, and they will be more likely to provide you with the funding. Just be sure to provide them with a plan related to your job, alongside the salary you will receive.
2. You’re a young entrepreneur who needs access to opportunities.
Entrepreneurship is vital for our society and has brought many innovative changes. If you’re a young entrepreneur, you will likely be striving to find funding for all the business ideas you have. To make the most out of these opportunities, you will need to move around a lot as there will be many new people and mentors you will be meeting. In such a case, having a car will be very useful to you, but of course, you lack the funding for it.
You can tell the lending company that you need a car for these opportunities but be careful; you need to come up with a plan first. You will need to explore all the business ideas you have, solidify the best ones, and present them. This is because the lending company wants their money back with interest at a regular rate, and they will only get it if they know your business ideas will become a reality. However, if you have a solid plan, you can likely convince them and get the funding you need.
3. You have family members that need transportation.
Public transportation or private transportation services may be cheaper for an individual, but if you combine the fees for family members, it can become a pretty hefty expense. Consider an average family: the parents will need transportation to work in different areas, and the children will need transportation to school. Paying individually for each of them will add up to such a considerable amount that buying a car will seem a lot more reasonable.
A lending company will also likely offer you the loan because you will likely have a steady job with steady pay if you have a family. Additionally, if you have a working spouse, this will work even more in your favor. You will need to prove your steady income and ID copies of family members, and you’re set. You can then commute to work and drop off your spouse and kids with a lot of money and time saved.
4. You need to build up your credit history.
Many types of loans depend on having a good credit history. Credit history represents how good you are at making timely repayments and fulfilling the loan contract . To have a healthy credit history, you will first need to have taken enough loans to represent how good you are at making repayments.
A great way to build up credit is to have a healthy variety of loans, and getting a car loan can help with this. There will also be less risk as you will not provide your assets as collateral, and if you fail to repay the loan, the lending company will simply repossess the vehicle. You can give companies evidence of how you have repaid some loans in the past and provide them with evidence of constant cash flow, and you will be able to get it. This will help you get to the goal of getting credit-based loans at better terms in the future.
5. You have pressing expenses that will be cleared up later.
Unexpected or major expenses will constantly come up and put you in a situation where you can spend on other things. This could be anything from a relative getting sick to an expensive bill. If you are in such a situation, you might require a car to make regular trips or maybe do extra work for extra money. You can tell the lending company that you cannot afford a car due to these expenses, but once they have cleared up, you will be able to afford a car. However, you need a car now, so you would rather pay back a loan in small installments than wait to buy the car later. You can then take a loan and repay them slowly, enabling you to come out for the best from the difficult situation. The lending company will only want to see proof of constant cash flow so you can repay them at the rate specified in the contract.
Why is Mwananchi Credit Ltd. the ideal car loan provider?
If you are in the market for a car financing loan , then you’re in luck. We are a Kenyan-based credit company that provides various loans that have changed the lives of our customers for the better. You can find our branches all over the country. Whatever your reason for getting a car, we are here to help through our quick and hassle-free auto finance loans .
What are Our car loan terms?
We provide funding from 100,000 KSH to 25,000,000 depending on the car you are interested in and provide fantastic interest rates with flexible repayment periods of up to 24 months. All types of cars can be financed, whether they are new or used, including lorries and matatus. The interest rates will also depend on the car, but we try to make sure the terms are as ideal for you as possible. We take care of the pre-approval and approval processes as swiftly as possible so that you can quickly get your funds. You do not even need to provide assets as security as the new car is used as collateral if the loan is not repaid.
What are your car loan requirements?
Our requirements are pretty simple, and they are the following:
- Six months certified bank statement
- KRA Copy
- ID Copy
- Passport Photos
- Sale Agreement
- Proforma Invoice
Come visit us or contact us online if you are interested in getting a car loan with us!
To sum up
Having a car can make transportation a lot easier to help you commute to your job, among other ventures. We have listed the best reasons you can give when applying for a car loan, increasing your chances of getting one with good terms. We have also provided you with our fantastic car financing loan details to see for yourself how advantageous they can be for you. So what are you waiting for? Come get your dream car with us!