Buying a car on hire purchase can be a great way to own a car without so much stress, as you get to pay in installments while using it. This system often favors business individuals and commercial drivers because they can make use of the car to raise the funds to acquire it.
With its many advantages, there are many mistakes people make that may have long-term implications and cost them their car. In this article, we’ll explore 10 of such.
Important Mistakes to Avoid When Buying a Car on Hire Purchase
1. Failure to fully understand the hire purchase agreement
The first mistake you must avoid is signing a hire purchase agreement that you do not fully understand. Take the time to read through the document before signing the dotted lines.
It will cost you a little more to get a lawyer to go through the agreement for you, but that may be your protection at the end of the day. So, it will do no harm to get your lawyer to read the agreement and counsel you accordingly.
2. Going with the wrong car dealer
Before you take a car on a hire purchase basis, ensure that you are entering into an agreement with the right car dealer. Avoid dealers that seem shady right from the start and seem to have so many things they are trying to hide.
3. Not picking the right car
Another important mistake people make is going for the wrong type of car. Understand all your needs and select a car that will meet them. Do not be deceived into picking an available car rather than the car you need.
4. Not doing a proper inspection
Whether you are buying a car outright or through hire purchase, not doing a proper inspection is one of the worst mistakes you can make.
Beyond the good body a vehicle may have, many things can be wrong, including the engine, the gear system, and more. Make sure to have a professional mechanic inspect the vehicle before any agreement is reached.
5. Failure to do the math
In a rush to get a car because you believe you have ample time to pay for it, the one mistake you can easily make is failure to do the math to see the true price you are paying and understand the value of the vehicle.
This has caused many to pay more than three times the price of vehicles, believing that they have gotten a great deal.
6. Underestimating running costs
Very close to failing to do the math correctly, Nigerians make the mistake of underestimating the running cost of a vehicle when going into a hire purchase agreement.
Understand that the maintenance and running cost of a vehicle can be very high, most especially if it is a Nigerian used vehicle. Try and put that into perspective before signing the dotted line.
7. Not negotiating well enough
Before signing a hire purchase agreement, make sure that you negotiate well enough to make it favorable. Do not rush to commit because you want to have a vehicle. Try as much as possible to see that you get the best deal possible.
See Also: Top Fuel-Efficient Cars for Nigerian Drivers – Best 8
8. Believing it when it’s too good to be true
Another mistake that Nigerians make is believing and continuing with a deal even when it seems too good to be true. When you are offered a vehicle on a hire purchase, and everything looks too perfect, then you may want to question everything because most of the time, when it is perfect, it is because it is not true.
9. Not taking your gut feeling seriously
One of the things you must take seriously when buying a car on hire purchase is your gut feeling. When you have a strong feeling that it might just be a bad deal, it is because it is.
10. Not keeping your side of the bargain
Most of the time, people end up losing out on hire purchase just when they are close to finishing because they fail to keep to their side of the bargain.
Once you enter into a hire purchase agreement, ensure that you make that agreement a priority and try to finish the payment. If for any reason you experience a delay in payment, ensure to communicate effectively and do all within your means not to keep missing payments.
