Debunking Car Finance Myths: What You Need to Know

Car financing can be a minefield of misinformation. Let’s clear up some common myths and guide you to smarter decisions.

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 1: New Cars Only

The belief that financing is only available for new cars is widespread. The reality? Options like MOGO Car Loan in Kenya finance cars of any age. They offer loans up to KES 2.5 million with a 20% minimum down payment, making it easier for buyers of older vehicles.

Myth 2: Banks Offer the Best Rates

It’s often assumed that banks provide the best rates. But lenders like Stanbic Bank offer competitive rates from 13.0%, which are lower than some traditional options. However, their minimum loan amount may not suit budget-conscious buyers.

Myth 3: Quick Approval Means High Rates

Many think that a fast approval process results in higher rates. However, DTB Car Finance provides quick decisions with rates starting from 13%, proving that speed doesn’t always mean a compromise on cost.

While these options offer a range of benefits, not all suit every buyer. For those prioritizing budget, certain lenders offer compelling lower-interest options.

Myth 4: High Deposits Are Unavoidable

It’s often assumed that a high deposit is necessary to secure a car loan. In reality, lenders like KCB Car Loan finance up to 80% of the vehicle value, requiring only a 20% down payment.

Myth 5: Only Salaried Employees Qualify

There's a common misconception that only salaried employees can qualify for car loans. However, Watu Gari offers loans to a broader audience, including self-employed individuals, although their rates aren't publicly disclosed.

When considering car finance, focus on what truly matters: the total cost, flexibility of terms, and approval speed. Remember, the best deals often require a little digging beyond the myth.