Refinance Your Car in South Africa

Yes. That is what refinancing usually is. Carfin sends one application to the top South African banks at the same time. The bank whose offer you accept pays the settlement amount straight to your current lender, your old account closes, and you keep driving the same car.

Possibly. Carfin's application goes to several of the top banks at once, and your current bank may be among them. Whether it makes a new offer is up to that bank. Either way you compare the offers side by side and take the one that suits you, or none.

Yes. If a balloon is falling due and you would rather not pay it as one lump sum, Carfin can refinance it over a new term, so you pay it off in monthly instalments. The usual rules apply: the car is in your name, the account is not in arrears, and you meet Carfin's income and credit lines. You will pay interest on the balloon for the new term, so compare the total cost first.

Often, yes, and 24 months is the minimum: Carfin can only refinance once you have paid your current deal for at least 24 months. It is worth it when the saving covers the costs. On a R250,000 balance with 48 months left, moving from 14.5% to an example rate of 11.75% lowers the instalment from R6,894 to R6,553, a saving of R342 a month and R16,400 over the term, before fees. Carfin's R7,900 fee alone would take about 24 months of that saving to cover, so look at the whole sum, not only the instalment.

It depends on what is on your record. Carfin looks at your whole credit profile, not one number. Under debt review the National Credit Act does not allow new credit, and a judgment is a decline until it is paid and rescinded. Past missed payments that are now up to date are a different case, and the banks will look at them. The pre-qualification shows where you stand.

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. Your current lender may charge for settling early; that cost is set by your credit agreement and capped by the National Credit Act, and your settlement letter shows the exact figure. The new bank charges an initiation fee, which the Act also caps, and a monthly service fee set by the bank.

One. Refinancing is a full finance application, so it includes a credit enquiry, but Carfin sends your one application to the banks with one credit enquiry, not one for each bank. The pre-qualification before it is a soft check and does not affect your credit score.

Good times are when you signed a fixed rate while rates were high and they have since come down, when your credit record has improved since you first took finance, when your instalment is straining your budget, when a balloon payment is getting close, or when you took dealer finance quickly and never compared rates.

Not directly. Refinancing changes the finance on the car you already have. If you want a different car, you settle the existing finance and take out new finance on the replacement. Carfin can help with both: getting the settlement figure and arranging finance on the new car.

Start by pre-qualifying, then send the full application and documents. Carfin sends it to the top banks at the same time and your consultant takes you through the offers. When you accept one, the new bank settles your existing finance and registers the new deal. You never need to visit a branch.