Buying a car symbolizes freedom, convenience, and in many ways, a personal win. But while the joy of owning a car is undeniable, the process of financing that car i a whole lesson on its own. My car taught me far more than I had anticipated. What I thought would be a straightforward monthly commitment turned out to be a lesson worth noting.
Here’s what I learned, and why thinking beyond the monthly payment is crucial when considering a car loan.
Your monthly payment is just a tip of the iceberg
When most people think about financing a car, they zero in on one figure the monthly installment. I was no different. I sat down, calculated how much I could afford every month, and assumed that was the most important metric. But what I didn’t initially consider was the total cost of the loan over time. In addition to the principal amount, there’s interest accrued over the loan period, valuation and legal fees, comprehensive insurance premiums, loan processing charges and service and maintenance plans.
That seemingly affordable Ksh 30,000 monthly repayment could easily translate to over Ksh 2.2 million paid over five years on a Ksh 1.5 million vehicle depending on the interest rate and loan terms. This was a wake-up call that forced me to look at the lifetime cost of ownership, not just short-term affordability.
2. Your car will lose value faster than you expect
Cars depreciate rapidly. The moment you drive a brand-new car off the lot, it starts losing value. After one year, most vehicles drop 15–25% in value and up to 50% by the third year, depending on the brand and model.
I was still paying off my loan when I needed to upgrade. To my surprise, the resale value was lower than my outstanding loan balance. This meant I had to top up from my own savings to clear the remaining loan after selling the car .
This experience taught me that financing a car is not just about whether you can pay monthly, but whether you’re getting long-term value from a depreciating asset. Stanbic Bank’s team actually highlighted this risk early on and helped me model different repayment plans which I now appreciate even more.
3. Choosing the right financing partner can save you time, money & headaches
One of the smartest decisions I made was working with Stanbic Bank. Their Vehicle and Asset Finance (VAF) isn’t just a loan it’s a comprehensive support system that walks with you from start to finish.
What stood out for me was how efficient and thoughtful the entire process was. Once I submitted all the required documents, the approval and disbursement process was fast and hassle-free. They offered flexible repayment terms tailored to my cash flow and business needs, rather than a rigid, one-size-fits-all model.
I also received expert guidance on critical decisions from choosing between a new or used car to determining the best loan tenure and understanding how interest rates would impact my total repayment. On top of that, Stanbic helped coordinate key services like valuation, insurance, and even liaised directly with the car dealership, saving me the stress of running around. This holistic approach gave me the clarity and confidence I needed to make a sound financial decision.
4. Owning a car means planning for hidden costs
Owning a car involves a range of recurring costs that are easy to underestimate. Beyond the monthly loan repayment, I had to now budget for fuel, insurance, parking and city council fees, servicing and repairs, tyres, brake pads, and spare parts and what not, road trips and emergency breakdowns.
Its worth noting that these expenses don’t go on pause just because you’re repaying a loan. Stanbic Bank’s VAF team helped me look at the full picture of car ownership something I had initially ignored. They even worked out scenarios with me: “What happens if fuel prices spike? What if your insurance jumps after an accident? Can you still comfortably meet your loan obligation?
That financial planning helped me avoid a tight squeeze and taught me to look at a loan’s total impact, not just its repayment schedule.
5. Value is about lifestyle, not just the car itself
At the end of the day, the true value of owning a car wasn’t just about driving a shiny new model or impressing friends. It was about how the car improved my life.
For me, the value came through as getting to client meetings on time without worrying about matatu delays, being able to move family safely and conveniently, expanding my freelance business by reaching customers across counties and reducing the stress of unreliable public transport.
Stanbic Bank understood this. Their focus wasn’t just on financing an asset it was about empowering mobility, productivity, and freedom. That shift in mindset helped me measure the value of the car in terms of how it supported my goals not just how much I could sell it for later.
Finally, Financing a car is a big decision. It’s tempting to rush into it especially when you find a good deal at a dealership or feel pressured to upgrade. But true financial literacy means slowing down and looking at both cost and value. It means asking yourself, “Can I afford this not just today, but over the next five years?”
If you’re considering buying a vehicle, I highly recommend exploring Stanbic Bank’s Vehicle and Asset Finance. They’re more than just a bank — they’re a strategic partner that helps you navigate car ownership with clarity, transparency, and support.
Their offering helped me make a financially sound decision that I’m still proud of today.