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Apply for Vehicle Refinance

Apply for Vehicle Refinance with The Help of BIB Finance

If you are currently sharpening your financial pencil and looking for ways to reduce your monthly spend, then taking a closer look at the cost of your vehicle each month is a good place to start.

2017-08-21

Vehicle instalments can be hefty and if you have been paying off your car for some time already, you may genuinely benefit from refinancing your existing deal. In fact, many people do! When you apply for vehicle refinance, you are actually securing a new loan that will ideally be provided with monthly instalments that are lower than your existing car loan’s instalments. Not only will this reduce what you have to pay each month, but will also free up some space in the budget and reduce the stress of meeting your financial obligations.

When you apply for refinance on your vehicle, there are several ways in which you can benefit:

  • When a lower interest rate is possible, your monthly instalment can be reduced and free up some cash flow.
  • Instead, you can opt to keep your monthly repayments the same and reduce your loan repayment period.
  • You can also choose to extend your loan period, which will lower your monthly repayments.

Of course, the savings that you enjoy will depend on the initial purchasing cost of the vehicle, your loan amount, and the imposed interest rate.

How Vehicle Refinancing Works

At BIB Finance, we will process your application and await approval from the bank. We work with various leading banks, such as WesBank, MFC (a division of Nedbank), Standard Bank, and Absa. When we hear back from the banks, we will discuss with you the various options available. Once you have decided what is best for you, we will finalise the documentation and new contract for you to sign. After you have given the go-ahead, your existing loan amount will be settled and the new loan will be put in place. Thereafter, you can start paying your new, lower instalment and enjoy the freedom you will get from more cash at your disposal.

There are general requirements for those who want to apply for vehicle refinance. First and foremost, you must have a green bar-coded ID document and valid driving license. Your proof of income must be provided in the form of official payslips or bank statements. A utility bill can be used to provide proof of address, which is essential for FICA purposes. Vehicle refinancing can only be done on a vehicle that is roadworthy and operational.

When Is Vehicle Refinancing a Prudent Option?

Many people wonder if vehicle refinancing is really suited to their circumstances. If your current vehicle loan was agreed upon with a high interest rate attached, it is definitely an option to refinance the deal at a more suitable (lower) interest rate. You stand to save the most if you have been paying your vehicle off for 12 months or more. Any sooner and you will not see substantial enough savings to make it worth your while. A vehicle refinance loan is most effective when the repayment term is lengthened and a better interest rate is negotiated. It is also a great idea to apply for refinancing if your credit situation has improved in the last six months. You may qualify for a better interest rate and payment terms.

At BIB Finance, when we negotiate vehicle refinancing for our customers, there are two major aspects that we take a look at, as they are rather important in the decision-making process. The one is your debt-to-income ratio and the other is your payment performance on your existing loans. As refinancing is treated as a new loan, your credit rating and repayment history will play an important role in the outcome of the application. If you are blacklisted or under debt review, it is not a good idea to apply for vehicle refinancing.

Apply for Vehicle Refinance with BIB Finance

At BIB Finance, we can simplify the vehicle refinance application for you. By handling everything on your behalf, you can sit back, relax, and wait for potential offers to be presented to you. For more information and advice on how to apply and what to expect, kindly contact us via email or telephone today.


Apply for Vehicle Refinance.