How To Use The Money254 Car Financing Tool On The Peach Website

As we’ve previously mentioned in our car financing guide, buying a car is one of the biggest financial decisions you’ll make in your life. It doesn’t matter whether you’re buying a brand new, foreign-used, or locally used car. Fortunately, car financing can help you to save on the initial costs of car ownership.  But the… View Article



As we’ve previously mentioned in our car financing guide, buying a car is one of the biggest financial decisions you’ll make in your life. It doesn’t matter whether you’re buying a brand new, foreign-used, or locally used car. Fortunately, car financing can help you to save on the initial costs of car ownership. 

But the biggest challenge when it comes to car loans in Kenya is finding the right loan product suited to your needs. Rarely do buyers have the opportunity to compare different car financing products before making a decision. 

Benefits of Comparing Different Car Loans Before Making a Decision

If you intend to take out a car loan, it’s not wise to grab the first offer you get. You should spend some time doing loan shopping and loan cost comparison. It increases your chances of getting the best car financing deal. 

Comparing loan offers is beneficial for several reasons, including:

  • You can explore various loan options: Car loan shopping allows you to discover products you may not have known about but are ideal for your financial situation and needs. 
  • You’ll have a better idea of the current car loan rates in Kenya: If you use the Money254 loan comparison tool, you’ll see the current loan rates for most of the major car financiers in Kenya. All the product information shown on the platform reflects the latest prices provided by institutions. This will help you to compare the estimated total cost of each car loan product and choose the best.
  • You can factor in the loan fees in your estimates: Loan fees such as loan processing fees can have an impact on the total cost of your car loan. You need to know such information beforehand and factor them into your payment plan. 

How to Compare Car Loans in Kenya

Comparing various car loans in Kenya isn’t complicated if you know what to look out for. Basically, you only have to consider these four things when comparing car loans from different financiers:

1. The amount of financing the institution offers

Every financing institution has a limit on the amount of financing they can offer for locally used cars. Most cap the loan at a specific amount while others work with a percentage, for example, 75 percent of the car’s value or 50 percent of the car’s forced sale value

Depending on how much downpayment you’re ready to make, it’s important to find a financier who’ll work within your budget. If you need 100 percent car financing, find a lender who offers that.

2. The interest rates

Interest rates refer to the amount charged by the lender on top of the principal amount. It ranges depending on the type of car loan you’re taking up and the lender- banks and saccos offer cheaper car loan interest rates compared to microfinance institutions. The interest rate is paid throughout the life of your loan on a monthly basis. 

Because of the significant impact of the interest rate on your total loan cost, it’s an important factor to consider when comparing car loans. But a lower interest rate (for long-term loans) doesn’t necessarily translate into an affordable loan offer. The longer the term of your loan, the more you pay in interest.

3. The annual percentage rate (APR)

The APR refers to the car loan’s interest rate expressed as a percentage for the whole year, inclusive of all the other costs associated with your car loan. It gives you a clearer picture of how much you’ll actually be paying in interest and the true cost of your loan.  

For example, a loan could attract a monthly interest rate of 2.1 percent but you’ll end up paying an APR of 51.4 percent when the other costs are factored in. 

4. Total cost of the loan

A car loan consists of the principal and interest. They make up the overall loan costs. Depending on the lender, your total loan cost may also include fees such as loan processing fees- some charge as little as Kshs. 3,000 while others go as high as Kshs. 50,000. 

With loan shopping, you can learn about the finer details of different car loan products and identify the real financing facility with the best deal.

How to Use the Money254 Car Financing Tool on the Peach Website

Walking from one financier to the other in order to compare their car loan products can be exhausting, not to mention time-consuming. By the third financier, you’ll be ready to take up whatever offer looks the cheapest (whether or not it’s ACTUALLY cheap). 

Peach Cars is now partnering with Money254 to enable our clients to compare different car financing products and choose what works best for them. You can now compare different financing products for a car of your choice and even request a car financing quote from Money254 on the Peach website. 

Here’s how to use the Money254 car financing tool on the Peach website:

Step 1: Search for a Car on Peachcars.co.ke 

Visit peachcars.co.ke and search for a car of your choice. You can find a car by: 

  • Make, for example, Nissan, Toyota, BMW, etc
  • Body type, eg, salon, sedan, hatchback, etc
  • Pricing. This will give you cars within particular price ranges, for example, cars below 500k, cars between 500k and 750k, etc

If you’re not looking for a specific car, you can browse through our listings to see if anything catches your eye. 

Step 2: Request Financing

Now that you’ve found your car, it’s time to get down to business. Click on “Request financing.” You’ll be redirected to a car financing quote request page.

Step 3: Complete the Car Financing Quote Request Form

Complete the Car Financing Quote Request form with your basic information. You’ll also be required to indicate how much deposit/ down payment you have budgeted for the car. This helps to prepare a quote suited to your financing needs. 

After completing the form, a Money254 agent will contact you and walk you through a non-obligation quote from all available financing partners. Money254 will provide you with a range of quotes from different lenders. You can compare the prices and offers from multiple car loan providers in one place, so it’s easy to find the best deal for your needs.

Step 4: Apply for a Car Loan

When you’re ready to apply for a loan, Money254 will help you with the loan application process for your preferred financier. At Peach, we will initiate the car transfer process so you can have a hassle-free car ownership experience. 

Get the loan application approved, drive away with your car.

As easy as 1, 2, 3, 4. 

Peach Cars and Money254 are dedicated to making it easy to buy a locally used car in Kenya through car financing. The tool is completely free to use and will make car loan shopping convenient and efficient for car buyers. 

Buy a Locally Used Car Through Car Financing

It’s never been easier to find the perfect car loan in Kenya. You can easily do it on your phone at the click of a button without having to talk to several financing institutions. So if you’re looking to buy a locally used car in Nairobi through financing, just head to our website and get started!

Own your dream car today.