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Refinance FAQ

Refinance Your Vehicle with the Help of BIB Finance

Feeling the pinch at the end of the month? Unfortunately, as prices rise, salaries do not necessarily follow suit, so it is important to budget carefully and take advantage of any money-saving opportunities.

2017-12-19

You are nearing the date for payment of the residual, but know that you do not have the amount that is outstanding. The solution is vehicle refinance. However, understanding what is required, how it benefits you, and more, are questions you may have. Since we want you to make an informed decision, we have answered some refinance FAQs below.

Do I qualify for refinance?

It is one of the most important FAQs. The financial institutions review your vehicle payment history and payments on other loans. If you have made instalments on time and have a relatively good credit record, you are one step closer to refinancing. The institutions also assess your current debt-to-income ratio to determine the affordability of the loan. The financial institutions usually require that the vehicle must have a value of at least R45 000. They also require that you must have a valid South African driving license and that you must be a South African citizen.

What are the other requirements?

The vehicle manufacturing date must be after 2001 and it is often a requirement that you must have an income of R6500 or more per month. You will need proof of income, which can be bank statements or salary slips. Many institutions require proof of residence, whilst virtually all require a good credit record, and that you have a South African ID. Of course, having a driving license also implies that you must be 18 years or older.

What are the advantages of vehicle refinancing?

Another important FAQ! Refinancing enables you to pay a lower monthly instalment on your vehicle, because it usually comes with a lower interest rate. Your credit score may have improved since the date of the original vehicle finance application when the bank awarded financing at a steep interest rate. With refinance, you get the opportunity to renegotiate the interest rate. With a lower interest rate applicable, you may even pay off the vehicle faster. In addition, it enables you to correct a situation where the current loan value far exceeds the vehicle’s true value. In short, it can save you money.

Final refinance FAQ – How does it work?

You apply online at our site. We notify you of the outcome of the application. You submit the required documents and we pay off your existing loan. You make monthly instalments as agreed and enjoy driving your car.


Apply for Refinance.