How Ghanaians Can Buy Cars and Pay in Instalments: Deposits and Requirements Explained

• Ghanaians can purchase brand-new and selected used vehicles through car-financing schemes offered by banks
• Some financial institutions require deposits ranging from 10% to 40%, while certain applicants may qualify without an initial deposit
• Applicants generally need proof of income, identification and other documents before securing financing

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Owning a car is a major financial goal for many Ghanaians, but the high cost of vehicles often makes it difficult to purchase one outright.

However, several financial institutions in Ghana offer vehicle-financing schemes that allow eligible individuals to acquire cars and spread payments over several months or years.

These arrangements are available through banks such as Fidelity Bank, Stanbic Bank, Bank of Africa and Prudential Bank.

Depending on the institution, applicants can finance brand-new or selected used vehicles without paying the entire purchase price upfront.

How much deposit is required?

The deposit depends on the bank, vehicle type and financing arrangement.

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Fidelity Bank Ghana, for instance, offers eligible salaried workers vehicle loans with no initial equity contribution for brand-new cars costing below GH¢500,000.

For used vehicles, the bank requires a 10% equity contribution, with repayment periods extending up to seven years. New vehicles can be financed over eight years.

Stanbic Bank also offers financing of up to 100% for new cars and 80% for used vehicles, subject to approval.

Meanwhile, Bank of Africa requires a minimum deposit of 25%, allowing customers to repay the outstanding amount over five years.

Prudential Bank's vehicle ownership scheme requires customers to contribute between 25% and 40% of the vehicle's cost.

For example, someone purchasing a GH¢200,000 vehicle under a 25% deposit arrangement would initially pay GH¢50,000.

The remaining GH¢150,000 would be financed, with interest and applicable charges increasing the total repayment.

Requirements and how to apply

Although conditions vary between financial institutions, applicants generally need the following documents:

• A valid Ghana Card
• Three months' payslips or proof of income
• Bank statements covering three to six months
• An employment confirmation or employer's undertaking, where required
• Proof of residential address
• A vehicle quotation or pro-forma invoice from an approved dealer
• A completed loan application form

Some banks also consider self-employed applicants with verifiable business income and satisfactory financial records.

Prospective buyers can begin by visiting a participating bank, selecting an approved vehicle and submitting their documents for assessment.

The institution then evaluates the applicant's income, credit history and ability to meet monthly repayments.

Once approved, the bank typically pays the vehicle dealer while the customer makes scheduled instalments.

Buyers should carefully review interest rates, insurance requirements, processing fees and penalties before signing.

Failure to meet repayments could result in the financed vehicle being repossessed under the agreement.

Content strategist shares car loan platforms

Previously, YEN.com.gh reported that Ghanaian TikToker and content strategist, Florence, had shared three institutions where locals can check if they are eligible to get a car through structured payment options.

She advised viewers not to rush into payments and to do research before committing fully, as many young workers and business owners are looking for ways to own a car without paying the amount at once.

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Source: YEN.com.gh