R 500
R 125000
R 250000
REPRESENTATIVE EXAMPLE: ESTIMATED REPAYMENTS OF A LOAN OF R30,000 OVER 36 MONTHS AT A MAXIMUM INTEREST RATE INCLUDING FEES OF 27,5% APR WOULD BE R1,232.82 PER MONTH. REPAYMENT TERMS CAN RANGE FROM 2 - 72 MONTHS. CREDITUM IS AN ONLINE LOAN COMPARISON TOOL AND NOT A LENDER. INTEREST RATES CHARGED BY THE LENDERS FOUND IN OUR SERVICE CAN START AS LOW AS 20% APR, INCLUDING AN INITIATION AND SERVICE FEE DETERMINED BY THE LENDER. THE INTEREST RATE OFFERED DEPENDS ON THE APPLICANTS' CREDIT SCORE AND OTHER FACTORS AT THE LENDER'S DISCRETION.

New Car Loans

In order to find the best loan for your needs, it is important to compare loans online.

  • Apply in minutes
  • Get offers from multiple lenders
  • Choose the best loan option available

Note: If you are not satisfied with the loan offers, you don’t have to select any of them.

Applying for a loan online – How it works

About 5 minutes

1. Select loan amount

In the calculator, select the loan amount you need.

The minimum amount is R 500 and the maximum amount is R 250 000.

 

2. Fill out contact details

Fill out your email address and your cellphone number.

Keep in mind that you will receive the loan offers through these channels.

 

3. Fill in additional details

The applications are often processed automatically. To achieve this, banks and lenders need some additional details, like your employment status and monthly income.

 

4. Select the best loan offer

Compare the offers & select the best one! If you are not satisfied with the offers, you don't have to do anything. The application expires automatically.

 

New Car Loans in South Africa – Find the Lowest Loan Rates and Apply Online

Are you dreaming of a new car to take on your daily commute or family road trips? A car loan can help you make that dream a reality. However, with a plethora of options available in the market, it can be challenging to find the right financing option that suits your budget and lifestyle. Our team of experts has done the research for you and compiled a comprehensive guide to help you find the perfect new car loan in South Africa. In this article, we’ll discuss the factors that affect car loan rates, the benefits of getting a new car loan, how to find the lowest car loan rates, steps to apply for a new car loan online, documents required for a new car loan application, tips for getting approved for a new car loan, and common mistakes to avoid when applying for a new car loan.

Understanding car loan interest rates

Before applying for a new car loan, it’s essential to understand how car loan interest rates work. The interest rate is the amount that the lender charges you for borrowing the money. The interest rate is usually expressed as an annual percentage rate (APR). Typically, car loan interest rates in South Africa range from 7% to 22%, depending on several factors.

Factors affecting car loan rates in South Africa

Several factors can affect car loan rates in South Africa. These include credit score, loan amount, loan term, type of car, down payment, and the lender’s policies. Your credit score is one of the most significant factors that affect car loan rates. If you have a good credit score, you’re likely to qualify for lower interest rates. On the other hand, if you have a poor credit score, you may have to pay higher interest rates. The loan term also affects the interest rate. Generally, shorter loan terms have lower interest rates than longer loan terms.

Benefits of getting a new car loan

There are several benefits of getting a new car loan. Firstly, a car loan allows you to purchase a vehicle that you may not be able to afford upfront. Secondly, you can spread the cost of the car over a more extended period, making it easier to manage your finances. Thirdly, by getting a new car loan, you can improve your credit score by making regular payments on time. Lastly, a new car loan can give you peace of mind by providing a reliable means of transportation for you and your family.

How to find the lowest car loan rates in South Africa

Finding the lowest car loan rates in South Africa can be a daunting task. However, with the right tools, you can easily compare the rates offered by various lenders. The best way to find the lowest car loan rates is by doing research online. Several websites allow you to compare car loan rates from different banks and financial institutions. These websites also provide useful information on the terms and conditions of each loan, allowing you to make an informed decision.

Steps to apply for a new car loan online

Applying for a new car loan online is a straightforward process. Here are the steps you need to follow to apply for a new car loan online in South Africa:

  1. Check your credit score: Before applying for a loan, check your credit score to ensure that you meet the lender’s requirements.
  2. Determine your budget: Determine how much you can afford to repay each month before applying for a loan.
  3. Research lenders: Research different lenders to find the best loan terms and interest rates.
  4. Gather your documents: Gather all the necessary documents, including your ID, proof of income, and bank statements.
  5. Submit your application: Submit your application online, along with the required documents.

Documents required for a new car loan application

When applying for a new car loan, you’ll need to provide several documents to the lender. These documents include:

  1. Your ID or passport
  2. Proof of income, such as your payslip or bank statements
  3. Proof of residence, such as a utility bill or lease agreement
  4. Details of the car you’re purchasing, including the make, model, and year

Tips for getting approved for a new car loan

Getting approved for a new car loan can be challenging, especially if you have a poor credit score. Here are some tips to help you get approved for a new car loan:

  1. Improve your credit score: If you have a poor credit score, work on improving it before applying for a loan.
  2. Save for a down payment: A down payment can help you get approved for a loan and reduce your interest rate.
  3. Shop around: Shop around for the best loan terms and interest rates.
  4. Avoid applying for multiple loans: Applying for multiple loans can negatively affect your credit score.

Common mistakes to avoid when applying for a new car loan

When applying for a new car loan, it’s essential to avoid some common mistakes that can lead to rejection or high-interest rates. These mistakes include:

  1. Not checking your credit score before applying for a loan.
  2. Not determining your budget before applying for a loan.
  3. Not shopping around for the best loan terms and interest rates.
  4. Applying for multiple loans simultaneously.
  5. Not reading the terms and conditions of the loan carefully.

Conclusion: Choosing the right car loan for your needs

In conclusion, getting a new car loan can help you purchase your dream car without breaking the bank. However, it’s essential to understand how car loan interest rates work and the factors that affect them. By following the steps outlined in this article, you can find the lowest car loan rates in South Africa and apply for a loan online. Remember to gather all the necessary documents and avoid common mistakes when applying for a new car loan. With our help, you can find the perfect car loan that fits your budget and lifestyle.

You might also be interested in:

Personal Line of CreditLow Interest LoansLoans for PensionersLow-income LoansExpress LoansAgricultural LoansLoans in Cape TownNo Credit Check LoansBoiler LoansPrivate LoansLong-Term LoansLand LoansPre-owned Car LoansAuto Refinance LoansCamper Trailer LoansMedical Loans
Lime
Loan amounts
R300–
R5400
Payback period
5 days to 7 weeks
Interest rate
Daily interest rate of 0.1% to 0.16% depending on Tariff Group
Other fees
R69/month + opening cost 16,5% of first R1000 lent + 10% of loan amount over R1000 (+VAT). Limited to lesser of 15% of loan amount (+VAT).
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Representative example: If you want to borrow R2000 for 30 days, you have to pay back R2428.78. The total cost includes interest, VAT, and a monthly service fee.
MyLoan
Loan amounts
R100–
R250000
Payback period
7 days to 36 months
Interest rate
MyLoan is an online loan broker and not a lender. Interest rates of the loans in the comparison panel can start as low as 20% APR.
Other fees
MyLoan is an online loan broker and not a lender. Other fees depend on the brokered loan.
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Representative example: a R50 000 loan at an interest rate of 24.5% per annum plus a once-off initiation fee of R1 207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00, over 72 months would have a total cost of R 103 155.57. The maximum annual interest rate including fees is 27.5%. Repayment terms can range from 1 - 72 months. MyLoan is an online loan broker and not a lender. T service is free and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants’ credit score and other factors at the lenders’ discretion.
Fasta
Loan amounts
R800–
R8000
Payback period
1 month to 3 months
Interest rate
Monthly interest rate 3%
Other fees
Initiation fee R994 + Service fee R69 + Credit protection fee R48.76
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Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.
Boodle
Loan amounts
R500–
R8000
Payback period
16 days to 6 months
Interest rate
Daily interest rate of 0.17%
Other fees
Service fee R60 per month + Initiation fee R165 on the loan above R1000 + Insurance premium R4.50 per R1000 per month on the daily balance
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Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.
MPowa
Loan amounts
R500–
R8000
Payback period
16 days to 6 months
Interest rate
Interest of 5% per month, 3% on additional loans during the same calendar year
Other fees
Initiation fee of 16.5% of the capital amount on the 1st R1000 then 10% on each amount over R1000 plus VAT. A service fee of R60 per month plus VAT.
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Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.