How to Qualify for Car Finance in South Africa?
What is Car Finance?
Sometimes we desire things we cannot afford financially, especially in South Africa. Buying a new car is one of those things. Only few South Africans could purchase a car out rightly, and pay in cash for it immediately. Which seems to make it near impossible for an average lower-class or middle-class to purchase a car for their day-to-day life. This is where car financing comes in, allowing the opportunity to buy your choice car on a loan, which you can pay back at your convenient time.
What are the requirements to qualify for vehicle finance?
To qualify for car finance in South Africa, there are few requirements, which include: An original copy of your identity document/passport, proof of income, proof of address, provide your bank statement if self-employed. After these documents are verified by the sale person, a run through on your affordability level will be ascertained. Then, your application for finance will be submitted to service providers. Now, this is the crucial part , for your application for finance to be approved , you need to have a good credit score unless you will be declined, if you have a bad credit history. However, if your application is approved by the banks, the provider will give a feedback of offer of finance and repayment plan, including the interest rate. The dealership will work you through best option for repayments, finance duration, interest rate, deposits and balloon payments. As soon as , this is agreed on, you will to have an insurance carrier, you could use the suggested carrier by dealership or figure out one yourself.
What is the minimum income for a car loan in South Africa?
In South Africa, the minimum income requirement for a car loan varies across providers. According to MFC, the finance house with the least minimum income requirement, has the following requirement, the applicant must be 18 years or older, you must be a permanently employed salaried worker, you must earn a minimum of R6 500 per month, must have a valid driving license, must be a South African citizen or permanent resident, most importantly, you need to have a good credit record.
What is a good credit score to buy a car in South Africa?
In South Africa, in order to qualify for a car finance, you must have a credit score of at least 580 and 669 to be considered a good borrower and the dealership will consider your car application.
How long does it take to get approved for car finance in South Africa?
On the number of days for approval for car finance , you application could take between 7 days to two weeks, if your documents have been received and all necessary signing done, in South Africa.
