Finally I have to take the dreaded loans.
Wadau what amount can a bank loan me against a car valued at 2m?
Alafu ni benki gani musuri kwa hii maneno? Ahhsahnde.
They give 50% mostly. Lakini pole. Utatoboa usistuke
Have you considered selling the car and getting interest-free money? If you must own a car for convenience, you can sell your 2mil car, buy a 500k car and use the difference to finance whichever project you have…unless you need the money urgently. You can always upgrade the car later.
I need the money sell the car later. but if the bank cant give me loan on reasonable terms I might actually sell it. I have never liked extra cash in my hands because it goes into useless stuff like phones. I want to buy several cheap pieces of land in total value less than the car.
Using what you have to get what you don’t have… without strings.
Enda Sacco ama wewe ni independent candidate?
independent bana
mind disclosing rough location.
Do you really need the better option or not? Why are you using “if” in that statement?
Chukua loan, utakua umesaidia mtu biashara somewhere else. Anza na your frequent bank. You will work hard to pay it back and probably make more cash.
A car is a rapidly depreciating asset and I’d not be surprised if the bank gave you 600k max. Like casinos, they never play to lose.
If all you’ll do with your loan is to buy fallow land for speculative purposes, how are you going to service the loan?
Who valued your vehicle? I hope you’re not basing yourself on the acquisition price.
So in summary wadau wanakuambia:
a) a car is a fast-depreceating asset. In many ways it is actually a liability
b) get the car valued by a reputable independent valuer (your lender may opt to use their own valuer)
c) you can only get a loan equal to 30% - 50% of the asset’s value
d) you must consider how you will fund the loan if all you are doing with the land is holding it and waiting for it to appreciate
e) you could sell the expensive car to finance the land - use the difference to get a cheaper car - if you must have one