Let me talk to those who are planning to buy cars these year; Buying a car is good. Very essential for making life easier. However, a car isn’t cheap, the cheapest car is around 450USD in Kenya. Today owning a car may seem very easy as compared to the 70s, THREAD 1/3

Today you can buy a car either in cash 💰, by bank finance, hire purchase and through trade in. But my interest on this post is on bank financing and Hire purchase. Bank finance is where the bank buys for you a car and you pay the bank for a period of time.

Hire purchase terms of purchase is where by you identify a car in a dealership, negotiate for its final price, pay an agreed deposit upfront then clear balance in defined period of time I.e in 6/12/18/20/24 months. So HP =Deposit + total Monthly Installments.

Whenever a bank offers to buy you a car, there is always a 99.9% chance that they will retain the logbook[A substitute for a collateral in lending] A logbook is the only instrument of ownership for any car in Kenya. So the bank will issue you with your logbook once you finish,

Finish paying for the car. The only problem I have with bank financing is the possibility of the buyer losing the car and servicing the loan. It has happened and it does happen. The bank repossesses the car and they auction it. You shall have lost two important things; the money