Vehicle Refinance Option

Vehicle Refinance Loan Option

Two reasons for you to consider a vehicle refinance loan if you own a car.

  1. You can refinance your vehicle to get a better interest rate and pay a lower monthly premium.
  2. If you are in need of some cash and need a loan.

Option 1: Refinance Your Car If you Still Paying It Off

You find yourself under financial stress. Consider refinancing your vehicle.

  • They will offer you a better interest rate.
  • Your monthly installments can be lower.
  • You might be able to pay the loan off quicker.
  • The title of your vehicle will be transferred to a new lender.

There are some disadvantages of vehicle refinancing

  • Additional finance fees.
  • Applying for refinancing can affect your credit score.
  • If there is nothing wrong with your current vehicle finance loan then refinancing might not be for you.

To Qualify For Vehicle Refinance

  • The value of your vehicle must be more than R45 000.
  • The vehicle must not be older than 2002.
  • Your vehicle must not rebuild, stolen, or recovered.
  • You must earn more than R6500 pm.
  • Have a valid South African drivers license.

Option 2: Make a Loan By Refinancing Your Vehicle

  • You actually take out a loan against the trade in value of your vehicle.
  • If your vehicle is paid up and the trade-in value is R80 000 then you will get the full R80 000 out.
  • But if your car trade-in value is R80 000. You still owe the bank R50 000 you will only get the cash of R30 000.

Where To Apply For Vehicle Refinance

5 websites where you can make an application online for vehicle refinance.

The Risk

Make sure you understand the risk and processes of refinancing your vehicle or refinancing your vehicle for a loan. Failure to pay back your loan can result in you losing your vehicle.

Application For A Loan

Always make sure that you can afford by taking out a loan by calculating your budget.

Recommended Reading: Refinance An Auto Loan