CAR FINANCE PROCESS FREQUENTLY ASKED QUESTIONS
Q: WHAT DOCUMENTS ARE REQUIRED FOR THE CAR FINANCE APPLICATION?
A: ID; Drivers Licence; Latest Proof of Physical Address; Latest 3 Months Payslips; Latest 3 Months Bank Generated Bank Statements; Completed Finance Application.
Q: DO I NEED A DEPOSIT?
A: Since the inception of the NCA a deposit is no longer an upfront requirement on car finance applications. However, each application is assessed individually and a deposit may/may not be requested by the relevant financial institution.
Q: HOW DOES THE INTEREST RATE WORK?
A: When your application has been approved, you will be offered a linked interest rate installment. You will also have the option to request a fixed interest rate quotation.
LINKED: The linked/variable interest rate will fluctuate with the prime lending rate. Therefore, your monthly installment will also increase/decrease when the prime lending rate increases/decreases.
FIXED: The fixed interest rate option will leave your monthly installment the same for the term of the finance, regardless of the changes to the prime lending rate.
Q: HOW LONG WILL THE FINANCE TERM BE?
A: The common payment period options are 48, 60 & 72 months.
Q: WHAT IS A RESIDUAL OR BALLOON PAYMENT?
A: A residual and balloon payment is the same thing. It is a final installment which is much larger than your ordinary monthly payments. It allows your ordinary monthly installments to be smaller with the last payment being large. The balloon amount is worked out at the beginning of your contract and is seen as a “future value”. At the end of the car finance agreement you will either need to:
a. pay the amount in full,
b. trade the vehicle in, or,
c. refinance the residual amount over a few more years.
**Remember, the higher the balloon amount, the greater the interest that you’ll owe over the full agreement period.
Q: ONCE MY CAR FINANCE IS APPROVED, WHAT DOCUMENTS WILL I NEED TO TAKE DELIVERY OF MY CAR?
A: Your original ID Book/Card; Original Drivers Licence; Original Latest Proof of Address; Proof of Comprehensive Insurance and any other documents as requested for at the approval stage.
“The way you handled my finance, meeting us, your friendliness and your way you communicate with your clients makes you a special person and, once again, the service was great indeed.”
Japie – Cape Town
“I have used Nikki’s services on two occasions now. Both have been flawless and demonstrated excellent customer service. Nikki is great at explaining in simple terms some of the more complex elements of package deals and financing options available. On both occasions, I have been able to drive away in my chosen car which Nikki, of course, sourced for me, within a week of starting the process. I could not recommend Nikki more – if you’re looking at sourcing and financing a new or used car, give her a shout. You won’t be disappointed.”
Sarah – Cape Town