If you are considering buying a car, there are many things to consider. One of the important decisions you are going to have to make is whether to buy from a dealer or a private entity. This is important since it can have an influence on your financing if you are not paying cash.
Some of us are lucky enough to buy cars cash but let us face it; the majority of people have to get a loan. When you are looking toward vehicle finance, it is best to compare. Many people are very satisfied with FNB vehicle finance and other with MFC, a division of Nedbank.
When you are buying from a dealer, the dealer will try to get the best deal from the financial institutions regarding interest rates and terms. They will try FNB vehicle finance, MFC, Standard Bank as well as Absa. Capitec Bank does not give out vehicle financing. The approval will depend on the information given by the dealer that includes your income, expenses, and your credit status.
A few factors might influence your approval at FNB vehicle finance and MFC according to their policies.
FNB Vehicle Finance
- FNB vehicle finance does welcome private deals but you have to earn at least R6 000 per month and have a clean credit record to qualify.
- The vehicle must not be older than 10 years and you have to borrow at least R30 000.
- There is no restriction on mileage of the vehicle but the car must be inspected by an FNB-approved test station.
- FNB has collaborated with Dekra that carries out road worthy tests as well as a 101-multi-point inspection.
- Private deals are welcomed via MFC’s private-to-private sales process.
- No cars are finances older than 10 years, except as classified as Classic, Veteran or Vintage but an amount of R30 000 and more must be borrowed.
- No mileage limitations.
Personally, FNB is more service orientated and gives more detailed information, which in my books, make him the winner.