Vehicle Finance Refinancing
Refinancing lets you replace your current vehicle loan with a new one on better terms. If interest rates have come down, your credit profile has improved, or you want to adjust your monthly installment, refinancing can help you lower costs, free up cash flow, or shorten your term.
Why refinance your vehicle loan?
- Lower your interest rate – Save over the life of the loan if you qualify for a better rate.
- Reduce your monthly installment – Extend the term to create more room in your budget.
- Pay off sooner – Keep your current installment but shorten the term to pay less interest overall.
- Remove or reduce a balloon – Convert a residual/balloon into normal repayments.
- Consolidate costs – Include admin fees or shortfall amounts in a single manageable repayment.
How refinancing works
- Quick assessment – Share a few details about your vehicle and current finance.
- We compare offers – We source options across leading lenders to find suitable terms.
- Choose your outcome – Lower rate, lower installment, or shorter term—your choice.
- Settle and switch – Your old loan is settled and replaced with the new agreement.
Good times to consider refinancing
- Interest rates have decreased since you took the original loan.
- Your credit score or income has improved.
- You have a large balloon/residual due at the end of term.
- Your vehicle still has solid market value and is in good condition.
- You want to free up cash flow without selling the car.
Refinance options
- Rate improvement – Keep your term similar, focus on lowering the interest rate.
- Installment relief – Extend term to reduce monthly repayments.
- Term reduction – Maintain payment, shorten term to save interest.
- Balloon restructure – Convert a residual into standard repayments.
Basic eligibility
- South African ID and valid driver’s licence.
- Stable income and affordability per NCR guidelines.
- Vehicle within lender age/mileage criteria.
- Good payment history on current account (helps qualify for better terms).
What you’ll typically need
- SA ID document
- Recent payslips and bank statements (3 months)
- Proof of residence (not older than 3 months)
- Current settlement letter from your existing lender
- Vehicle details: registration certificate, mileage, condition
Costs and fees
Lenders may charge initiation and admin fees. There may also be costs to obtain a settlement letter or to update registration. We transparently outline all applicable fees before you proceed so you can make an informed decision.
Refinancing FAQs
Will refinancing hurt my credit score?
An application involves a credit enquiry. Responsible refinancing that improves affordability can be beneficial over time.
Can I refinance if I have a balloon?
Yes. You can refinance to remove or reduce a balloon by spreading it across the new term.
How long does the process take?
Once documents are ready, approvals can happen quickly. We’ll guide you through timing and next steps.