Are you thinking of buying a vehicle?

Next to property, buying a vehicle is one of the biggest purchases you will make. How do you finance a deal that’s both affordable and delivers a rewarding driving experience? Start the journey with these seven easy-to-follow steps. 


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What are your payment options?

If you have a credit history, you can apply to get vehicle finance, either through a dealership or directly through a bank (such as Investec).

There are various options for how you borrow and pay back the money, each of which has various benefits and drawbacks. 

  • Vehicle finance agreement


    • This allows you to buy a vehicle from a dealer or a private seller and pay for it in equal monthly instalments (including interest) over a fixed term, usually from 12 months to 72 months
    • Structured payment plans can be discussed with your Private Banker. Some banks, such as Investec, give you an access facility allowing you to access any additional funds paid into your lending account during the loan term, so you can save on interest or pay off your loan sooner (no early settlement fees apply). 


    • The bank or credit provider owns the vehicle until it has been paid for in full and when the final instalment is made, you become the official owner. 
  • Vehicle finance agreement with a balloon payment


    • This type of loan allows you to buy a vehicle from a dealer or private seller and pay for it in equal monthly instalments with a balloon or lump sum payment as your last payment (typically this is around 30% of the purchase price).


    • Although this deal reduces your monthly instalments, remember you have to pay a large sum of money at the end of the contract, which could put a strain on your finances if you don’t have that money readily available. 
  • Leasing a vehicle


    • With a lease agreement you pay monthly instalments in exchange for full use of the vehicle during the lease term
    • At the end of the lease term, you can choose to return the vehicle to the lessor (usually the bank), buy the vehicle from the lessor or renew the lease agreement. 


    • Sometimes the lease agreement is subject to certain restrictions – eg a limit on your mileage or that you return the vehicle in a good condition. 

Watch the video


Selae Thobakgale hosts this episode of In conversation for young professionals. She is joined by Nokuhle Kumalo, Trainee Accountant, and Neo Mahlangu, National Banking Client Segment Head at Investec Private Banking.