Frequently Asked Questions About Vehicle Finance

Carfin's fee is R7,900 in total: an R5,950 admin fee (VAT included) plus R1,950 registration, paid at cost to the licensing department. Licensing is separate. You see every cost before you sign. You are under no obligation to accept any offer.

Yes. Carfin is an NCR Approved Finance Broker (NCRCP2341) and an authorised financial services provider (FSP No. 19735). It has arranged vehicle finance in South Africa since 2006, with more than 14,000 deals, from its office at 14 Oaktree Ave, Hazelwood, Pretoria, 0081. Carfin is rated 5.0 on Google from 16 reviews.

Read our story

Vehicle finance, or car finance, is a secured loan with the vehicle as collateral. You borrow money to buy the vehicle, then repay it monthly with interest over an agreed term, up to 84 months depending on the bank. The bank holds the title until the loan is fully repaid. In South Africa, vehicle finance is a credit agreement governed by the National Credit Act.

Vehicle finance through Carfin

Carfin submits to the top South African banks. Sending one application to them at the same time is the core of what Carfin does.

Carfin arranges finance for new and used passenger vehicles, bakkies and light commercial vehicles, SUVs and business fleets. The vehicle must be roadworthy, and a used vehicle must be within the bank's age limit, which each bank sets. Some exotic or heavily modified vehicles may need a specialist lender.

Bakkie and business vehicle finance

It depends on how quickly your documents are in and how fast each bank decides, so Carfin does not promise a fixed time. Once you have sent the documents, Carfin handles the bank decisions. Once you accept an offer, Carfin also handles the payout to the dealer and the vehicle registration.

R10,000 a month. Carfin needs you to take home at least R10,000 a month. Banks then look at how your debt compares with your income.

Answer four questions to see if you qualify

There is no single number. Each bank has its own model, and Carfin looks at your whole credit profile: how you pay your accounts today, any arrears, defaults or judgments, and whether you are under debt review. Your income, your existing debt and the car count too. The pre-qualification shows where you stand, with no effect on your score.

Car finance with bad credit

Possibly, but it is harder. With little or no credit history, banks have less to judge you on, so steady income you can prove matters more. The pre-qualification shows whether your record is enough for Carfin to take an application to the banks.

A deposit is not always required. It improves your chances of approval and lowers both your instalment and the total interest you pay. Many banks prefer a deposit of around 10%. Whether you can finance with no deposit depends on your credit profile and the bank.

The pre-qualification does not: it is a soft check with no effect on your credit score. A full application includes a credit check, but Carfin sends one application to the banks, with one credit enquiry on your record, not one per bank.

Pre-approval means finding out whether you are likely to get finance before you choose a car. Carfin's pre-qualification does this with a soft credit check, which has no effect on your credit score. It tells you whether Carfin can take your application to the banks. It is not a final approval: each bank decides on the full application.

Yes. The pre-qualification confirms whether Carfin can submit your finance application, before you visit a dealership. It puts you in a stronger position to negotiate and stops you falling for a car you cannot finance. It does not guarantee final approval, but it is a real soft credit check with no impact on your score.

Pre-qualify

Salaried employees need a valid South African ID, 3 months payslips, 3 months bank statements (from the account your salary is paid into), and proof of residence not older than 3 months. Self-employed applicants and business owners need a valid South African ID, 6 months personal and business bank statements, the latest 2 years financial statements (if available), and proof of residence not older than 3 months. For a refinance, add your current finance agreement or settlement letter.

Yes, if you are self-employed and can prove your income. In place of payslips, banks look at 6 months of personal and business bank statements and your latest financial statements. Carfin prepares the application so each bank sees your income clearly.

Car finance for the self-employed

Yes. Carfin arranges private sale finance and manages all payments securely between buyer and seller, which removes the risk of strangers dealing in cash. The vehicle must be unfinanced, or its existing finance must be settled at transfer. The Private Sale Finance page sets out the full process.

Learn about private sale finance

A fixed rate stays the same for the whole term of your deal, whatever happens to prime. A linked rate moves with the prime lending rate: if prime goes up, your instalment goes up, and if prime goes down, so does your instalment. Fixed rates give you certainty. Linked rates can save you money when prime falls, but cost more when it rises. The Carfin calculator shows the instalment for any rate you enter.

Try a rate in the calculator

A balloon payment (also called a residual) is a lump sum left to the end of your finance term instead of being spread across your instalments. It lowers your instalment, but you still owe that capital, all at once, at the end, and you pay interest on it for the whole term. You can settle it in cash, refinance it, or sell the vehicle.

Full guide: Balloon Payments Explained

Yes, if you are at least 24 months into your current deal, the car is in your name and the account is not in arrears. If your credit profile has improved, rates have dropped since you signed, or your instalment has become too much to manage, refinancing can lower your rate or your instalment. Carfin sends your refinance application to the top banks at the same time.

See refinancing options

It depends on how quickly your documents are in and how fast each bank decides, so Carfin does not promise a fixed time. Once your documents are in, Carfin handles the bank decisions and the settlement of your old deal.

Read the step-by-step refinancing guide

Yes. Your current bank may charge an early settlement cost: it is set by your credit agreement and capped by the National Credit Act, and the bank's settlement letter shows the exact figure. The new bank charges an initiation fee, also capped by the Act. Carfin's fee is R7,900 in total: an R5,950 admin fee (VAT included) plus R1,950 registration, paid at cost to the licensing department. Licensing is separate. You see every cost before you sign.

It depends on why your credit is impaired. Carfin looks at your whole credit profile, and you need to take home at least R10,000 a month. If you are under debt review, the National Credit Act does not allow new credit until you have a clearance certificate, so Carfin cannot help. A judgment is a decline until it is paid and rescinded.

An honest assessment of your options

Debt review is a formal legal process under the National Credit Act, in which a debt counsellor restructures your debt. While you are under debt review, the law does not allow you to take on new credit, including vehicle finance. This is not a bank policy. It is a statutory prohibition. Finance becomes possible again only once the review has formally ended and a clearance certificate has been issued.

Your documents are uploaded online and handled in line with POPIA. Your data is never sold, and it is shared with no third parties other than the banks your application is sent to. The privacy policy sets out how Carfin uses and protects your information.

Read the privacy policy

Yes. Carfin is an NCR Approved Finance Broker, registration NCRCP2341. Carfin is also an authorised financial services provider, FSP No. 19735.