Frequent question: How do I qualify for car finance in South Africa?

What is the minimum income for a car loan in South Africa?

You must earn a net salary of at least R3 500 a month, with a basic salary of R3 500 a month.

What are the requirements for car finance?

How to Qualify for a Car Loan

  • Make Sure You Have Good Credit.
  • Have a Source of Income.
  • Be Able to Prove Your Identity and Residence.
  • Consider Getting Preapproved.
  • Have a Down Payment or Trade-In.
  • Understand How Financing at a Dealer Works.
  • Qualifying for a Car Loan With Bad Credit.
  • Work on Your Credit Before Applying.

How long does car finance approval take in South Africa?

If the loan approval process takes long, don’t worry, this can be a lengthy process. It can take anywhere between seven days to two weeks once all the documents have been received and everything is signed. Once this part is over and if your loan has been approved, the legal stuff like home owner transfer etc starts.

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Can I get car finance without a driving Licence in South Africa?

Yes, there are a small number of lenders who are prepared to provide car finance without a licence, and the good news is we have some of these on our panel of approved lenders. Most lenders will ask for proof of a driving licence once an application has been accepted and before paperwork can be signed.

What is a good credit score to buy a car in South Africa 2020?

670 and 739, you have a good rating, and as such, you are not likely to be delinquent in the future. 740 and 799, you are very good and likely to receive better than average rates from lenders. 800 and 850, your rating is exceptional, and you are considered to be at the top of the list for the best rates from lenders.

What is the cheapest car in South Africa?

5 Cheapest New Cars in South Africa 2021

  • Suzuki S-Presso – From R149 900. …
  • BAIC D20 – From R149 990. …
  • Suzuki Celerio – From R153 900. …
  • Mahindra KUV100 Nxt 1.2 G80 K2+ – From R154 999. …
  • Renault Kwid – From R162 900.

Do car dealerships call your employer?

When you apply for a car loan, the lender you’re financing through, not the dealership, is the one that verifies your employment history. The lender may confirm your work history, or even your current employment. Here’s what they’re looking for when it comes to your job history.

How long does car finance take to be approved?

How Long Does It Take For Car Finance To Be Approved? Normally, it takes 1-2 business days for a car finance application to be approved. Copies of all your documentation, the signed vehicle contract and signed finance contract are all sent to the finance lender.

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What checks are done for car finance?

The most common checks for car finance include a credit check and a financial assessment. You’ll also need to supply proof of identity and various other pieces of documentation.

What is a good credit score in South Africa?

Most credit bureaus rate your credit score between 300 and 850: A low score is generally considered to be between 300 and 579. A fair score is between 580 and 669. A good score is anything above 700.

Can I buy a car without a license in South Africa?

There is no legislative requirement in South Africa that prevents you from buying a car without a Drivers License. However, you are not permitted to drive a car without a valid Drivers License.

Can I get car finance without a license?

Do I have to have a full driving licence to apply for finance? No, you do not. You will need a full licence if you intend to drive the car on your own, however you do not need one to apply for car finance. You will need to provide some form of identification so you will need a provisional licence or passport.

What’s the oldest vehicle you can finance?

Typically, a bank won’t finance any vehicle older than 10 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a new car. But, banks are far from the last option when it comes to auto lending.

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