1. Vehicle Finance Options
Installment Sale
The most common option. Pay equal monthly installments over a fixed term. The bank owns the car until the final payment is made.
Balloon Payment
Features lower monthly payments with a large lump sum ("balloon") due at the end of the term. Requires careful financial planning.
Personal Loan
An unsecured loan used for buying a car, often with a higher interest rate. Useful for private sales or older vehicles.
Home Loan (Access Bond)
Using an access facility on your home loan can offer a lower interest rate, but it extends the loan term and can be risky.
2. Application Requirements
- Valid SA ID & driver's license.
- Proof of residence (not older than 3 months).
- Latest 3 months' payslips & bank statements.
- Comprehensive insurance details.
- Vehicle details.
- A solid credit score.
3. Interest Rates & the NCA
Interest Rates
Rates are based on the prime lending rate and your credit profile. A good credit score and a larger deposit lead to a lower rate.
National Credit Act (NCA)
Protects you from reckless lending. Lenders must assess your affordability. The NCA ensures transparency and fair credit practices.
4. Smart Finance Tips
- **Know Your Budget:** Calculate all ownership costs, not just the monthly payment.
- **Check Your Credit Score:** A healthy score gives you better negotiating power.
- **Shop Around:** Compare offers from different banks and dealers for the best deal.
