Minimum Salary to Qualify for Car Finance in South Africa

If you are tired of public transportation and want to own a car, you need money to do so. A car is expensive if you earn an average salary. Best car finance deals South Africa allow for the purchase, use, and gradual repayment of the loan amount.

But there are certain conditions that you have to meet to get car financing and get approved. Plus, you have to earn at least R6500 a month on an annual basis. Let’s take a closer look at all the details and requirements involved in car financing in South Africa:

Minimum Salary Required to Be Eligible for Car Finance

The banks/lenders give a certain limit of monthly income that you must earn, to be able to pay them back. Your application will only be considered by the finance houses if you earn a regular salary of at least R6,500 per month. However, it does not mean that every company will require this fixed amount.

Finance and Insurance manager, Allesha Chetty has reported that you need a minimum of R7,500 per month to finance a car. So, it is better to inquire about the minimum salary with your finance house, because the exact amount depends on the provider. Moreover, if your income is higher than this amount you have a good chance of financing a car with better vehicle finance interest rates.

Minimum Car Finance Salary Requirement for Lower Income Applicants

If you earn less than R6500 per month and want to have a car you should not lose hope because I have a solution for you. You can now finance a car with a minimum monthly salary requirement of R5000 with a standard bank. Furthermore, the following are requirements for standard bank car finance.

What Should I Consider Besides Minimum Salary for Car Finance?

Insurance and maintenance are a must before you buy the car. Banks advise against spending more than 25-30% of your salary on a car. You have to factor in other expenses associated with owning a car, such as insurance, repairs, fuel expenses.

Additionally, banks and financial institutions do not usually finance very small car loans. For instance, they do not even consider loans less than R100,000 and will not finance a car that is older than ten years.

Standard Bank Car Finance Requirements

Standard Bank car finance allows you to finance a car at the lowest rate possible which is R5000 per month. So, if you earn at least R5000 per month and can pay a minimum loan amount of R20,000, you will be qualified for it. Furthermore, their payment periods are between 12 and 84 months and your credit will be assessed before approving your application to finance a car.

Wesbank Minimum Salary Requirement for Car Finance

If you can afford more than R6500, you should go for Wesbank car financing because it offers graduate finance. If you earn at least R7500 a month and have completed a degree or higher diploma within 3 years of applying for a car, you can apply for wesbank car finance. 18 to 31 years old is the minimum age.

Other Related Requirements for Car Financing

Car Financing isthe best way to purchase your dream car without making debts or falling into heavy-interest loan traps. South Africans can purchase a vehicle of their choice and then slowly pay its money in monthly installments. Furthermore, car financing is helping millions of people by letting them own a car.

Car financing is not a very complex method; however, it does have an eligibility criterion. Moreover, if you want to increase the chances of your application approval you need to complete their requirements and know how to improve credit score for car finance.

Citizenship and Credit History

To confirm your legal status and ties to the country, you need to be a South African or a permanent resident of South Africa. Furthermore, your credit history is taken into consideration when you submit your application. Your past borrowing and repayment behavior will be checked through your credit hours and a positive credit history will increase your chances of successful car financing.

Age Requirement

Financing a car needs you to be at least 18 years or older. Furthermore, this is because you need to enter a financial agreement with the bank/company which requires you to reach your legal age.

Employment Status

Lenders want to ensure that you can afford to pay them back. Therefore, they want you to have a stable source of income. So, you must have a permanent job to be eligible for Financing a car.

Documents Required for Car Financing

It is essential to gather the necessary documents that you will need for the application. So, compile the following documents because you will be asked about them during your application for best car finance deals South Africa:

• You must have a valid South African identity card or green barcoded card that can prove your identity.
• A copy of your driver’s license including front and back to verify your ability to legally drive the car.
• A utility bill or statement that contains your residential address, this document will confirm your current place of residence and therefore it should not be older than three months.
• You will need proof of your income, so if you are a salaried employee then you will be asked to present payslips for the past three months. If you are self-employed or earn money through commission, you can provide stamped bank statements and payslips from the last 3 months to prove that you are earning a stable income consistently.
  

Can I Buy a Car on a Loan in South Africa Without a Payslip?

If you can prove your earnings, a payslip is not mandatory. If you have a good credit history, your chances of getting approved for the loan will be higher.

The starting salary for car finance in South Africa is R6500 a month, but it could be even higher if the provider offers a lower range. You can also get a car with a monthly payment of R5000 up to R7500. Before you apply for car finance, you need to consider other expenses like insurance, maintenance, fuel, and servicing.