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Vehicle Finance in South Africa

How to Get Approved for Vehicle Finance in South Africa the First Time

With skyrocketing car prices and the current economic climate, it is difficult to purchase a brand-new car with cash.

2018-06-19

For those who want to afford their current lifestyle, and drive a new car, the only option is to apply for vehicle finance. In South Africa, the banks are bound by the National Credit Act (NCA), which means that they have to be meticulous about ensuring that the car finance they provide can actually be afforded. For many, this can mean that a car loan application will be rejected.

If you are afraid of being turned down for first-time vehicle finance in South Africa, your fears are quite valid. Unfortunately, getting credit to buy a car these days can be a complicated and disappointing process. Below are a few tips on how to ensure that your vehicle finance application is accepted and approved the first time.

Make Sure That You Know What Your Disposable Income Is

Affordability is vital. Make sure that you deduct all your current expenses from your income. What is left is your disposable income. This amount can be used for luxuries, such as a new car. That is why banks carry out affordability assessments.

Be Reasonable About the Extras

Now that you know what your disposable income is, do not dedicate all of it to a new vehicle instalment. You will need to set half of that amount aside to cover expenses, such as insurance, fuel, and maintenance costs. You also need a bit of extra money, in case of emergencies. While buying a new car is exciting, do not get caught up in it all, but budget wisely. While vehicle finance in South Africa is affordable for some, it is not for all.

Save For a Deposit

When you put down a deposit on a new car purchase, you immediately reduce the amount of credit required for the transaction. This also reflects well on your finance application, as it shows that you can be responsible with finances and can afford to pay the monthly instalments.

Apply for Vehicle Finance in South Africa at BIB Finance

If you are shopping around for the best deals on vehicle finance in South Africa, you have come to the right place. We can assist you with car loan applications with all major banks, and will negotiate the best possible deal. Simply contact us via email or telephone for more information and advice today.


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