How It Works!

The Vehicle Finance Calculator is a really helpful tool that calculates what your approximate monthly installment will be, based on your input in the following fields:

Vehicle Price – Refers to the price of the vehicle
Deposit – This is an amount you could pay to reduce the finance or loan amount required. If you are paying a deposit, how much are you putting down?
Trade in Amount – The amount you’d receive if you traded in your vehicle
Residual / Balloon – This is the lump sum amount payable at the end of the finance term (if applicable)
Repayment Period – The number of months over which the loan will be repaid
Interest Rate – The amount a lender (such as a financial institution) charges a borrower. This is calculated per year as a percentage of the amount loaned
Repayment Period – The repayment term options

How to Apply for Vehicle Finance

Once you have an idea of how much your monthly payment installment on a vehicle will be, you can apply for vehicle financing through a registered Financial Services Provider (FSP). You can visit any bank or even do your application online. Your credit record, your monthly salary and your disposable income will be assessed to check whether you qualify for the loan. Ensure you have all these documents ready and that you have done the maths on your affordability so that you don’t get any nasty surprises! Note that there may also be additional costs (such as the Initiation Fee, Deposit, etc), so check with the FSP before you sign anything.

FAQs On Financing A Vehicle

Can you get finance for a second-hand car?

Yes, you can. However, most FSPs will not finance a car that is older than 10 years. There are some exceptions to this (some Vintage or Classic vehicles may be accepted), but this depends on the bank.

Can you get finance if you have bad credit?

Your Credit Score is a three-digit number that calculates how probable it is that you will be able to pay your loans. If your credit score is low (under 550), it flags your profile as “high-risk” to FSPs, so you are less likely to achieve a loan.

Any Credit Score above 550 is a good one, and any Credit Score over 600 is very good and will qualify you for the best loan programs and rates. By law, all South Africans are entitled to one free credit report per year from one of the Credit Bureaus (TransUnion, Experian, XDS or My Credit Check) so check yours before you apply for a loan so that you know where you stand.

According to the National Credit Act (NCA) and the National Credit Regulator (NCR) if you are under debt review, you will not be able to apply for a car loan. Once you are cleared by the Credit Bureaus, you will be able to apply for credit again and therefore be eligible to apply for vehicle financing.

What is the interest rate on the vehicle loan?

The interest rate is the percentage you pay over and above the capital cost of the vehicle.

Consider what type of interest rate you need:

A linked/variable interest rate is linked to the prime lending rate (currently 7% per year), so it may fluctuate (for better or worse) over time
A fixed interest rate stays the same throughout the duration of the loan. This rate may be slightly higher than the linked rate, but some people prefer this option as they know exactly how much they’re being debited each month

Interest rates can also vary from bank to bank, so don’t be afraid to shop around for a deal that suits your pocket. If you are applying through a dealership, you can also ask their F&I person to show you the “Podium”. This way you can see the interest rate each bank is offering.

Who do you finance the vehicle through?

Any registered FSP will be able to help you.

Disclaimer: While we make every attempt to give you the best possible tools and information, Motomatch will accept no responsibility for any loss or miscalculations that may arise. All calculations made on this calculator are to be used as guidelines only and must be confirmed with your finance provider. It is based on the information you have provided and does not take into account monthly expenses and other factors that need consideration when purchasing a vehicle. Amounts displayed here should not be relied upon solely in making your purchase. Please note that by default this calculator uses the prime interest rate + 2% and a 72-month loan repayment term to calculate estimated monthly repayment.