What is Car Finance?
Car finance refers to the various financial products which allow someone to acquire a car, including car loans and leases.
How To Qualify For Car Finance In South Africa
Personal Requirements
- Age – 18 years and older.
- Employment – Permanent.
- Salary – On-going monthly salary of no less than R6,500 p/m.
- Citizenship – South African or permanent resident of South Africa.
- Credit history – Financers will run a credit report to check your lending habits.
What credit score is needed to buy a car in South Africa?
While the minimum score can change depending on the dealership and the make and model of the car you are interested in, a score of at least 600 or higher is usually needed to get a car loan.
How does car finance work in South Africa?
The bank pays the dealer in full on your behalf, then you pay back the loan with interest in monthly installments over an agreed term – usually, between 12 and 72 months, although it can be longer in certain cases. The longer the term of the loan, the more interest you will pay in total.
How long does it take to get car finance approved in South Africa?
If the loan approval process takes long, don’t worry, this can be a lengthy process. It can take anywhere between seven days to two weeks once all the documents have been received and everything is signed. Once this part is over and if your loan has been approved, the legal stuff like homeowner transfer, etc starts.
Which bank is best for car finance?
We will walk you through the best traditional banks & lenders and alternative lenders providing car financing in South Africa.
- Wesbank Vehicle Finance.
- Absa Vehicle Finance.
- FNB Vehicle Finance.
- Alternative vehicle loan lenders.
- Keitzman Vehicle Finance.
- Frequently asked questions about car finance: