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Debunking Myths: The Real Deal on Car Financing
Explore common car finance myths, such as 'new cars are always more expensive', and discover how lenders like DTB offer competitive rates with flexible terms.
Rates and terms shown are representative. Your actual rate depends on your credit profile and circumstances. This is not financial advice — always read the lender's terms before applying.
Myth: New Cars Always Cost More to Finance
Many assume that new cars are always pricier to finance than used ones. However, lenders like DTB offer up to 100% financing for new vehicles, often with competitive rates starting from 13%. This makes new cars more accessible than you might think.
DTB Car Finance
DTB offers a comprehensive financing solution for new car buyers with up to 100% coverage and competitive interest rates. It's an excellent option for those seeking to avoid hefty down payments while still securing a long-term loan.
DTB Car Finance
Myth: All Lenders Require a 20% Down Payment
While many traditional banks demand a 20% down payment, some lenders, like MOGO, provide more lenient terms. MOGO offers car loans with just a 20% minimum deposit, making it a viable choice for individuals who may not have substantial savings.
MOGO Car Loan Kenya
MOGO stands out by offering flexible down payment options, which can be a relief for buyers without large upfront funds. However, this flexibility comes with higher interest rates compared to traditional banks.
MOGO Car Loan Kenya
Myth: Used Cars Always Come with Lower Rates
It's a common misconception that used cars are cheaper to finance. In reality, lenders like KCB often impose higher rates on used vehicles to offset risk, despite competitive starting rates for new cars at 14%.
KCB Car Loan
KCB's loan offering is robust for new car purchases, providing competitive rates and terms up to 60 months. For those considering used cars, be prepared for potentially higher rates.
KCB Car Loan
While these lenders provide unique advantages, the next options cater to those seeking traditional bank structures with higher financing limits.
Traditional Bank Options
For those who prefer the stability of established banks, options like I&M Bank and Stanbic Bank offer high financing limits, making them suitable for premium car purchases.
I&M Bank Car Loan
I&M Bank offers a solid choice for buyers seeking higher financing amounts with its structured car loans. The trade-off is a slower approval process and the need for full documentation.
I&M Bank Car Loan
Stanbic Bank Vehicle Loan
Stanbic Bank provides high loan ceilings and competitive rates starting from 13%. It's well-suited for buyers looking to finance substantial vehicle purchases, though a salary account transfer may be required.
Stanbic Bank Vehicle Loan
When considering car finance options, it's crucial to understand the nuances of each lender's offerings. The right choice depends on your financial situation, vehicle needs, and how quickly you need the funds. Always compare the representative APR and terms to find the best fit for your life.
