Important disclosure

Car Finance for Pensioners

South African lenders offer a many loan options, such as, car finance for pensioners. We have created an easy to use loan calculator that will help you to compare these loan options.

Go ahead and input the loan amount that you are considering then use the filter to adjust the loan term. Once you click calculate, you will then get a good idea of what your expected monthly payment will be. So, go ahead and try it.

Calculate repayments

Go through Fincheck's online application to get matched with loan provider that's most suitable for you.

Overview

Minimum monthly incomeR8,000

Initiation feeR1,207.50

Minimum term (months)12 months

Interest rate10.25%

Vehicle finance APR10.25%

EST monthly repayment (approx)R2,208

Total repayment amount (approx)R132,480

Total interest & fees paid (approx)R32,480

Rate typeFixed

Secured or unsecuredSecured

GO TO Fincheck

Other Fees & Information

Monthly feeR69.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesNo

SponsoredYes

Data accurate as of18.01.2020

GO TO Fincheck

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Are you in the market for a vehicle between R40 000 and R250 000? We provide a loan for vehicles up to 20 years old* at accredited dealers countrywide.

Overview

Minimum monthly incomeR5,000

Initiation feeR1,207.50

Minimum term (months)6 months

Interest rate10.00%

Vehicle finance APR10.00%

EST monthly repayment (approx)R2,195

Total repayment amount (approx)R131,700

Total interest & fees paid (approx)R31,700

Rate typeFixed

Secured or unsecuredSecured

GO TO Nedbank

Other Fees & Information

Monthly feeR69.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesYes

SponsoredNo

Data accurate as of18.01.2020

GO TO Nedbank

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Go through Fincheck's online application to get matched with loan provider that's most suitable for you.

Overview

Minimum monthly incomeR8,000

Initiation feeR1,207.50

Minimum term (months)12 months

Interest rate10.25%

Vehicle finance APR10.25%

EST monthly repayment (approx)R2,208

Total repayment amount (approx)R132,480

Total interest & fees paid (approx)R32,480

Rate typeFixed

Secured or unsecuredSecured

GO TO Fincheck

Other Fees & Information

Monthly feeR69.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesNo

SponsoredYes

Data accurate as of18.01.2020

GO TO Fincheck

Hide info -

Get a principal decision within 24 hours if all necessary documents have been provided.

Overview

Minimum monthly incomeUnknown

Initiation feeR1,207.50

Minimum term (months)12 months

Interest rate12.25%

Vehicle finance APR12.25%

EST monthly repayment (approx)R2,295

Total repayment amount (approx)R137,700

Total interest & fees paid (approx)R37,700

Rate typeFixed

Secured or unsecuredSecured

GO TO Mercantile Bank

Other Fees & Information

Monthly feeR57.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesYes

SponsoredNo

Data accurate as of18.01.2020

GO TO Mercantile Bank

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Low deposit requirement. No monthly admin fees. Competitive pricing. Annual lump sum option available. Option of fixed or variable repayments. Up to 72 months.

Overview

Minimum monthly incomeR2,000

Initiation feeR1,207.50

Minimum term (months)12 months

Interest rate12.50%

Vehicle finance APR12.50%

EST monthly repayment (approx)R2,320

Total repayment amount (approx)R139,200

Total interest & fees paid (approx)R39,200

Rate typeFixed

Secured or unsecuredSecured

GO TO Albaraka Bank

Other Fees & Information

Monthly feeR69.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesYes

SponsoredNo

Data accurate as of18.01.2020

GO TO Albaraka Bank

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What Dealership Finance offers: A tailor-made vehicle finance solution. Choice of fixed or variable rate. A reasonable balloon payment or residual value to match your agreement choice. What this allows you to do: Buy a vehicle from a dealership. Buy a vehicle up to 10 years old. Finance a vehicle for at least R30 000 after deposit.

Overview

Minimum monthly incomeR6,000

Initiation feeR1,207.50

Minimum term (months)12 months

Interest rate9.00%

Vehicle finance APR9.00%

EST monthly repayment (approx)R2,146

Total repayment amount (approx)R128,760

Total interest & fees paid (approx)R28,760

Rate typeFixed

Secured or unsecuredSecured

GO TO First National Bank

Other Fees & Information

Monthly feeR69.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesYes

SponsoredNo

Data accurate as of18.01.2020

GO TO First National Bank

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Experience the joy of owning your car while you are paying it off with our flexible instalment sale agreement. Own the vehicle while you are paying it off. Reduce your monthly payments by choosing a balloon payment or by paying a deposit. Choose a monthly repayment from 24 - 72 months. Fixed or variable interest rates available

Overview

Minimum monthly incomeR2,000

Initiation feeR1,207.50

Minimum term (months)24 months

Interest rate12.50%

Vehicle finance APR12.50%

EST monthly repayment (approx)R2,320

Total repayment amount (approx)R139,200

Total interest & fees paid (approx)R39,200

Rate typeFixed

Secured or unsecuredSecured

GO TO Absa

Other Fees & Information

Monthly feeR69.00

Other feesR0.00

Missed payment feeUnknown

Repayment scheduleMonthly

Early repayments allowedYes

For used vehiclesYes

SponsoredNo

Data accurate as of18.01.2020

GO TO Absa

Hide info -

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CompareLoans.co.za provides factual information in relation to financial products. While CompareLoans.co.za attempts to make a wide range of products and providers available, it may not cover all the options available to you. Moreover, we cannot be responsible for changes made to this information by product providers and/or inaccurate information obtained from a product provider. All product information comes from the product provider or publicly available information and to the best of our knowledge is correct at the time of publishing. The information published on CompareLoans.co.za is general in nature only and does not consider your personal objectives, financial situation or particular needs and is not recommending any particular product to you. If you decide to apply for a product you will be dealing directly with that provider and not with CompareLoans.co.za. CompareLoans.co.za recommends that you read the relevant product disclosure statement or product guide before taking up any financial product offer. For more information please see CompareLoans.co.za's Terms of Use and Services Guide.

Minimum and maximum loan periods vary between 1 months and 10 years. Comparison interest rates vary between 6.55% and 60% p.a. Total interest repayments vary between R685.05 and R844.12 over the life of the loan. *Comparison rate is based on an unsecured loan of R20,000 for a term of 3 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.

What type of car loan are you looking for?

Compare car finance for pensioners in South Africa

Can pensioners get car finance in South Africa? Yes. Even though most lenders require borrowers to be permanently employed, it is still possible to finance your vehicle purchase when you’re retired. If you’re not sure how car finance for pensioners works, CompareLoans is here to help with this useful guide.

As a pensioner, you’re probably looking for an affordable, and economical car loan with an easy application process. Keep reading to find out the best available options for your financial situation.

What is pension car finance, and how does it work?

Pension vehicle finance involves taking out a car loan after you have retired and are no longer employed. You use the lump sum to cover the car’s purchase price and then pay back what you borrowed plus interest.

However, as a pensioner, the lender does not consider the monthly salary factor. Instead, they look at your pension and credit score to decide how much they can offer you. To get the best car loan deals, we recommend that you only work with registered and reputable lenders that offer authorised financial services.

Types of car loans for pensioners

  • Secured car loans – The car you’re buying also secures the loan, which gets you an affordable interest rate. However, failing to pay back the loan means you lose the car to the lender.
  • New and used vehicle finance – Pension vehicle finance allows you to purchase a new or used vehicle. What you qualify for depends on the car you can afford and your credit score.
  • Financial lease – You drive the car while paying rent every month. When the car lease expires, you can renew it, give the car back, or use your savings to purchase it.
  • Personal loans – Secured personal loans use your personal property (house, car, etc.) to guarantee the loan. They typically have low interest rates. Unsecured personal loans require no collateral and, therefore, have comparatively high interest rates.
  • Home equity loans – Do you have a mortgage that you’re currently paying? You can borrow some of that money or equity back and use the lump sum to cover the purchase price of your car.
  • Bad credit car loans – These are typically high-interest loans that offer credit even when your credit score is poor.
  • Overdrafts and short term loans – These usually limit the amount you can borrow, which works well if you only need to top-up on your savings. The loans also have a short payback time.

What to consider when choosing a loan

  • Loan amount – This depends on the size of your pension and whether you are making a deposit or choosing a balloon payment.
  • Loan term – A longer loan term reduces your monthly instalments but the total cost of your loan increases as you pay more interest.
  • Interest rate – A low interest rate is always the best option, and depending on your preferences, you can choose a fixed rate car loan or a variable rate car loan.
  • Loan fees and charges – These include initiation fees, monthly service fees, early repayment fees, plus other charges that can increase the total cost of your loan.

What do you need to apply for car finance while on a pension?

When you finance a car as a pensioner, the most important thing is to prove your creditworthiness, which is simply your ability to repay the loan. The good news is, if you’re over the age of 65, you can still meet most of the general requirements set by lenders:

  • Be a South African citizen or have valid documents for permanent residency;
  • Valid driving licence (South African or International);
  • A clean credit history; and
  • A minimum and regular monthly income.

The biggest factors to consider here is your current income and your credit score. The average minimum monthly income needed to qualify is usually around R6000. Your lender will ask for the latest bank statements to verify your income. Furthermore, they’ll perform a credit check to determine the level of risk you pose. If you’re not sure about qualifying for the loan, it’s best to contact the lender and check with them first.

Use the pensioner vehicle finance calculator to choose an affordable loan

You can estimate your monthly car loan instalment with our pensioner vehicle finance calculator. It will give you a good idea of the estimated monthly payment for your car loan. A look at our comparison tables is a good start since the results from the calculator will be shown there for each lender.

To start, use the sliding tools provided to input the loan amount and loan term before you click calculate. If you adjust the numbers, you’ll get different results, which helps you to decide the number that works well with your monthly budget.

How to apply for pensioner vehicle finance

Ready to apply for a car loan? After using the pensioner vehicle finance loan calculator and checking out the list of popular lenders in our comparison tables, the next step is to decide on a lender.

Besides the monthly repayment results, you can click “View fees and additional info” to help you make a more informed decision. To start your online application with your chosen lender, simply click “Go to Site.” The application process usually involves the following steps:

  • Filling in an application form. This includes your personal details (ID number, contact, etc.), your financial information, details of your assets, and how much you wish to borrow.
  • Uploading the necessary documents. Valid copies of your ID, licence, and bank statements should be in your computer, or phone so you can submit them online.
  • Waiting for the lender’s response. The lender carries out an affordability assessment and credit check before making an offer. Having too many credit check enquiries can lower your credit score, so it might be a good idea to keep the loan applications to a minimum.
  • Accepting the loan offer. If you qualify, you agree to the terms and conditions by signing the loan contract. The lender then pays the required amount to the seller.
  • You start driving your car. You do this while paying your monthly repayments. At the end of the loan agreement, you’ll have full ownership of the car.

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