Frequently Asked Questions About Vehicle Finance
Every common question about vehicle finance in South Africa, eligibility, documents, credit, process, refinancing, balloon payments, private sales, and more. Plain answers, no jargon.
General
Carfin charges an admin fee of R7,900, which includes registration but excludes licensing. There is no obligation to accept any offer, and your consultant explains all costs upfront before you sign anything.
Vehicle finance is a secured loan where the vehicle itself acts as collateral. You borrow money to buy the vehicle, then repay it monthly over a term (usually 12 to 84 months) with interest. The bank holds the title until the loan is fully repaid. In South Africa, most vehicle finance is structured as instalment sale agreements governed by the National Credit Act.
Carfin submits to the top South African vehicle finance providers. Submitting to all banks simultaneously with one application is the core of what Carfin does.
Carfin arranges finance for new and used passenger vehicles, light commercial vehicles (LCVs/bakkies), SUVs, and business fleets. The vehicle must be roadworthy and, for used vehicles, not older than the bank's maximum age limit (typically 10 years at the end of the finance term). Certain exotic or heavily modified vehicles may require specialist lenders.
Once you submit all required documents, Carfin handles the bank decisions and, once you accept an offer, the payout to the dealer and the vehicle registration. We aim for fast, reliable service throughout.
Eligibility & Credit
Banks set their own minimums. Most major South African banks require a net monthly income of at least R10,000 for entry-level vehicle finance. In practice, your debt-to-income ratio matters more than the raw figure, banks assess total monthly debt obligations against your income. Carfin submits to top banks simultaneously to find the best fit for your profile.
There is no universal minimum credit score. Each bank uses its own scoring model. A score above 650 (on most bureaus' scales) generally gives you access to mainstream rates. Below 600, you may still qualify but with a higher interest rate. Below 500, most banks will decline. Carfin submits to multiple banks so that we can find any lender whose criteria you meet.
A deposit is not always required, but it significantly improves your chances of approval and reduces your monthly repayment and total interest paid. Most banks prefer a 10% deposit. A 20% deposit will typically unlock a better interest rate. Zero-deposit deals are possible for applicants with strong credit profiles.
Carfin's initial assessment is a soft inquiry, which does not affect your credit score. When banks formally assess your application, each conducts a hard inquiry. Multiple hard inquiries in a short window (typically 14 to 30 days, depending on the bureau) are usually treated as a single inquiry by credit scoring models, this is called inquiry deduplication.
Yes. Carfin offers a soft pre-qualification that confirms whether we can submit your finance application, before you visit a dealership. This puts you in a stronger negotiating position and prevents you from falling in love with a vehicle you cannot finance. Pre-qualification is not a guarantee of final approval, but it is a real soft credit check with no impact on your score.
Get pre-qualified →
Documents & Process
Salaried employees:
- Valid SA ID document or passport
- 3 months payslips
- 3 months bank statements (where salary is paid)
- Proof of residence not older than 3 months
Self-employed / business owners:
- Valid SA ID document or passport
- 6 months personal and business bank statements
- Latest 2 years financial statements (if available)
- Proof of residence not older than 3 months
Yes. Carfin facilitates private sale finance and manages all payments securely between buyer and seller, removing the risks of cash transactions between strangers. The vehicle must be unfinanced (or the existing finance must be settled at transfer). An independent valuation is required. See the Private Sale Finance page for the full process.
Learn about private sale finance →
Finance Types
A fixed rate stays the same for the entire term of your deal regardless of what happens to prime rate. A linked rate moves with the South African Reserve Bank's prime lending rate, if prime increases, your repayment goes up; if prime decreases, it goes down. Fixed rates offer payment certainty; linked rates offer potential savings when prime falls but carry risk when it rises.
Use the Carfin calculator to compare both scenarios for your deal.
A balloon payment (also called residual value) is a lump sum left at the end of your finance term instead of being spread across monthly repayments. It reduces your monthly repayment but you still owe the capital, all at once, at the end. You can settle it in cash, refinance it, or sell the vehicle.
Full guide: Balloon Payments Explained →
Refinancing
Yes. Carfin specialises in vehicle refinancing. If your credit profile has improved, prime rate has dropped, or your monthly repayment has become unmanageable, refinancing can reduce your rate or repayment. Carfin submits your refinance application to top banks simultaneously, at no cost to you.
See refinancing options →
Once documents are submitted, Carfin handles the bank decisions and the settlement of your old deal. We aim for fast, reliable service throughout.
Your current lender may charge a settlement fee (typically 1 to 3% of the outstanding balance). The new bank charges an NCA-capped initiation fee of R1,207.50. Factor these into your savings calculation before deciding.
Bad Credit & Debt Review
It depends on why your credit is impaired. Low credit scores, missed payments, and short credit history can sometimes be worked around, especially with a larger deposit. However, if you are currently under debt review, the NCA legally prohibits you from taking on new credit until the review is complete. If you have a judgment, the judgment must typically be paid and rescinded first.
Honest assessment of your options →
Debt review is a formal legal process under the National Credit Act where a debt counsellor restructures your debt obligations. While under debt review, you are legally prohibited from taking on any new credit, including vehicle finance. This is not a bank policy; it is a statutory prohibition under the NCA. Finance becomes possible again only after the review is formally concluded and a clearance certificate is issued.
Security & Privacy
Your application documents are processed in an isolated, bank-grade secure environment. Carfin does not store sensitive documents beyond the period required for bank submission. Your data is never sold or shared with third parties other than the banks to which your application is submitted, in accordance with POPIA.
Carfin operates as a registered credit intermediary under the National Credit Regulator (NCR). NCR registration details are available on request and will be displayed on this page once confirmed. [PENDING, CONFIRM WITH CLIENT]
Still Have a Question?
Our consultants can answer any question about your specific situation, at no cost and with no pressure to apply.