Absa Vehicle Finance

Absa vehicle finance gives you four solutions to choose from depending on your needs. You can choose between Instalment Sale Agreement, Lease Agreement, Rental Agreement and Islamic Vehicle Finance.

Absa promises to help you whether you already found your dream car or are still looking for the right one.

They will help you find your dream car, calculate what you can afford and getting the best Absa vehicle finance solution.

Once all this is done, they will also assist with making sure your dream car is insured.

In this article, we will take a look at some of the features of the Absa vehicle finance solutions so that you can choose the one that suits your lifestyle. We will also help you with some tips when applying for your car loan to make sure it is quickly approved.

Let’s get started by looking at the features of the difference solutions available.

Absa Vehicle Finance Solutions

1. Instalment Sale Agreement Features

• Own the vehicle while you are paying it off
• Reduce monthly payments by choosing a balloon payment or paying a deposit
• Choose a finance term of 24 – 72 months
• Fixed or variable interest rates
• The car belongs to you after you have paid it off
• You get access to Absa Online (see article Absa Online: Is Absa Online Safe?)

2. Lease Agreement Features

• You have use of the vehicle for the lease period
• Reduce monthly payments by choosing a balloon payment or paying a deposit
• Choose a monthly repayment option from 24 – 72 months
• Fixed or variable interest rates
• You have the option of buying the vehicle at the end of the lease period without any obligations
• You get access to Absa Online (See article Absa Online: Is Absa Online Safe?)
• An initiation fee and a monthly service fee are charged on all new contracts

3. Rental Agreement Features

• Affordable, fixed monthly payment
• Choose a repayment period of up to 72 months
• Fixed or variable interest rate
• Drive the vehicle of your choice without the hassle of ownership
• You get access to Absa Online (See article Absa Online: Is Absa Online Safe?)
• A risk assessment may require you to pay a deposit upfront

4. Islamic Vehicle Finance Features

• Enjoy access to a car for a fixed period and price
• Reduce your monthly rental fee when you have extra cash
• Variable or fixed rental fees.
• At the end of lease, you can buy the vehicle at an agreed price, nominate a third party to buy it or use it at a reduced or zero rental fee
• Absa offers insurance cover with access to a range of free services
• You get access to Absa Online (See article Absa Online: Is Absa Online Safe?)
• 100% financing and tax benefits available

Private to Private Car Dealerships

Absa vehicle finance now allows you to buy or sell your car privately.

With over 40 approved car dealerships nationwide, Absa’s dealers can help you with assessments before buying, or assist with facilitating the sale.

For a safer and hassle-free transaction when buying or selling a vehicle privately, visit a branch or call Absa on 0860 669 669.

The Application Process

Application can be online, and process should take around 15 – 20 minutes to complete.

During the application process you will be asked about the vehicle you are buying, for example you will be asked to choose if it’s a motor vehicle, motorbike or taxi, etc.

Make sure you have details of the vehicle such as the year, make and model and the dealer’s contact details.

Next, you will be asked about your finances. After this, a consultant will contact you to discuss your next steps.

TIP: When applying, make sure you have as much details available as possible to avoid any delays in your application. There is nothing as too much information.

What you need to Apply

Absa clients:

• Proof of identity (South African ID book or card)
• Proof of address (not older than three months)
• A valid salary slip (latest)

Foreign residents and non-Absa clients:

• Work permit
• Passport
• Letter of appointment or a payslip
• International driver’s license
• Last three months’ bank statements (non-Absa clients)

Absa vehicle finance calculator

A lot of people ask the question, what is the Absa vehicle finance calculator and should i use it?

The Absa vehicle finance calculator is an important tool found on the Absa website to calculate what you can afford.

Before you apply for Absa vehicle finance, we strongly recommend making use of this calculator. This will give you an idea of what your monthly payments on your car loan will be. In return, you will be able to judge if you can afford the monthly repayments.

Absa provides this calculator for convenience to you. It provides results based on your input and assumptions and it should not be used for any other purpose.

Always contact Absa for verification on any of the information provided by the vehicle finance calculator.

Illustrative Example

Price of Vehicle: R420 000.00
Vehicle Finance Required: R421 207.50
Loan Term: 72 months
Interest Rate: 11.75%
Deposit on Vehicle: R0.00
Balloon Payment: R0.00
Monthly Service Fee: R69.00
Initiation Fee: 1,207.50
Estimated Monthly Repayment: R8 249.03
Total Interest & service fees: R172 722 .72

Other Things To Consider: Important Tips

Should you buy a new or used car?

When you buy a new car, it usually has the latest features and updated technology. Furthermore, you have more choices about colour schemes or trim combinations and extras or upgrades.

However, buying a new car means you will have to spend more as new cars will be more expensive than used ones. Also, insurance, taxes and registration fees are higher.

On the other hand, if you have a small or fixed budget the better option might be getting a used car. One important thing to note when buying a used vehicle, is that, it is safer to buy a vehicle that has been quality checked and certified by a dealer.

A disadvantage of getting a used car is that it can cost you more over the lifespan of the vehicle. In addition, it may require maintenance and repairs far sooner than a new car.

So which option should you choose, new or used? The answer depends on your budget and what best meets your needs.

Most people choose to go for a new car when they don’t have budget constraints. If you have a small budget, you can shop around, and still find a good barely used or demo car which includes a warranty and maintenance plan.

Should I pay a deposit?

While Absa vehicle finance solutions gives you the option to get your car without paying a deposit, you need to be aware of some of the benefits of paying a deposit.

Paying a deposit will reduce your monthly payments and interest over the term of the loan.

What is a Balloon payment?

A balloon payment amount is a lump sum payment that is owed to the bank at the end of the loan term after all monthly repayments have been made.

Advantages of having a balloon payment are that you pay lower monthly instalments and no deposit is required. Furthermore, you can sell your car at the end of the loan term and use the money to pay off the loan.

However, on the down side, you will have one big instalment to pay to the bank at the end of your car loan term.

Should you opt for a Balloon payment? Again, this is usually a personal choice and determined by personal circumstances.

To make a wise decision that suits your lifestyle, look at the pros and cons listed above.

Absa Vehicle Finance Contact

If you have any questions, you can contact Absa vehicle finance directly using the details below. And if you wish to visit a branch you can find your nearest branch by using the branch locator found on their website.

 Car finance

Telephone: 0860 669 669

Email Address: vehiclefinance1@absa.co.za

Islamic car finance

Telephone: 0860 000 786

Email Address: absa@absa.co.za