Car finance in Western Cape – South Africa
If you’re in the market for a vehicle finance, the information below will help you secure your car finance in Western Cape.
What’s car finance in Western Cape?
Car finance enables you to buy and drive a car when you don’t have enough funds to cover the purchase. Generally, car loans work like this:
- Get a purchase agreement from the vendor – usually a car dealership or private seller.
- Compare loans and choose one that’s suitable for your budget and needs.
- After loan approval, the lender pays for the car.
- You start driving while paying monthly instalments to the lender. Car loan amounts are from R10 000 to R300 000 while payments are made over 12 to 84 months.
- With a financial lease, you only rent the car, but you can choose to buy it after the loan contract ends.
What’s the difference between secured and unsecured car loans?
- Car finance in Western Cape usually involves secured car loans where the car is the asset that guarantees the loan. In case of non-payment, the lender will claim the car from you.
- Unsecured car loans are not guaranteed by any asset. They might have higher interest rates and a high credit score requirement to reduce the risk for the lender.
How to compare the best car loans in Western Cape
When choosing the best car loan for you, consider the following factors and ask questions that help you with the selection process:
- Interest rates and fees. Is the interest rate variable or fixed? Which lender offers the lowest car loan interest rate? What other charges or fees are included? Find your answers by clicking “View fees and additional info” in the comparison tables above.
- Monthly payments. How much do I repay every month? Use our car finance calculator by adjusting the sliders and enter your desired loan amount and term. Next, click “Calculate Repayment” to view your estimated monthly payments.
Apply for car finance online in Western Cape
When you find a favourite lender, simply click their “Go to Site” button which you’ll find in the comparison tables above. The link directs you to the lender’s website where you submit your application.
Make sure you qualify for the loan – most car loans have general requirements that include:
- Minimum age of 18 years;
- South African ID;
- Driver’s licence;
- Proof of income;
- Car insurance; and
- Proof of residence.
Car finance in Western Cape – Frequently asked questions
Can you find blacklisted car finance in Western Cape?
Some lenders offer bad credit car finance that is likely to have a higher interest rate, and which might require a deposit and larger monthly payments.
What’s a balloon payment?
Unlike a deposit which is paid upfront, balloon payments are paid as a lump sum when the loan contract ends.
What other types of vehicle finance can I find in Cape Town?
Vehicle finance can also cover your purchase for the following new or used vehicles:
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