MFC Vehicle finance offers you a number of ways to finance your dream vehicle. You can select the instalment sale agreement, balloon payment option or rate payment option.
This article will take at the MFC vehicle finance option available and from these options you can select the option that suits your financial goals and lifestyle.
MFC Overview
MFC, previously named Nedbank Vehicle Finance, is a division of Nedbank, an authorised financial services and registered credit provider
The company came about after a merger between Motor Finance Corporation and Nedbank Vehicle and Asset Finance in October 2010.
Whilst maybe companies have a lot of products to focus on, MFC has a single focus, which is vehicle finance.
MFC endeavors to offer you a simple service in a fast and efficient way.
MFC Vehicle Finance Options
1. MFC Vehicle Finance – Instalment Agreement
This option involves the bank purchasing the vehicle of your choice and then selling it to you over a negotiated period at an agreed interest rate.
Here are some of the features of an instalment agreement;
Deposit – Whether you pay or not is subject to credit risk, and is negotiable based on age of vehicle.
Repayment terms – You’ll get to choose between a minimum of 12 months and a maximum of 96 months.
Interest rates – Market-related rates will apply. In addition, you can choose between a fixed or a linked-interest rate.
Balloon payment – This is optional and can be structured into your agreement.
Ownership – Whilst you are still paying for the vehicle, ownership will remain with MFC. When the vehicle is paid up, you will receive documentation from MFC that needs to be taken to the licensing authority to complete the change of ownership process.
MFC settlement – An early-settlement option is available. There is no penalty on small and intermediate agreements.
2. MFC Vehicle Finance – Balloon Payment Option
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.
However, on the down side, you will have one big instalment to pay to the bank at the end of your car loan term.
At the end of the agreement period, you have an option to sell the vehicle or pay the full balloon payment amount and take ownership of the vehicle. Another option is to re-finance the balloon payment for a further period.
The maximum balloon facility is 35% and is subject to the year, make and model of the vehicle and the finance period.
3. MFC Vehicle Finance – Rate Payment Option
What we love about MFC is that they give you the option to select between a fixed or a linked-interest rate.
Fixed-rate option provides you with peace of mind when interest rates fluctuate. The advantage of this option is that your interest rate will remain the same even if interest rates increase.
Linked-rate option also known as the variable option provides with a benefit of your interest and therefore monthly payments going down when interest rates go down. However, when interest rates increase, it will mean your interest and monthly repayments will also increase.
4. Private-to-Private Sales
If you wish to do a private deal, you’ll be happy to know that MFC will be able to assist you with finance.
MFC will assist with the verification and registration of the vehicle.
They will also ensure that payment is made to the seller.
MFC Calculator
The wisest course to follow before apply for any finance is to always find out what you can afford. By doing this you can save yourself a lot of time in applying for a product you can’t afford.
To calculate what you can afford you can make use of the MFC calculator.
The MFC calculator, which you find on the MFC website, has 2 calculator options you can make use of.
The first option is a budget calculator. This option will allow you to put your monthly income and expenses, after which it will give you an estimate of a possible cash price for a vehicle.
The second option is an instalment calculator. With this calculator, you can calculate your monthly instalment based on vehicle price, the deposit you can afford to put down and a preferred repayment period.
In summary, the budget calculator will give you what you can afford whilst the instalment calculator will give you your monthly instalment.
Annual Percentage Rate (Interest Rates and Associated Fees): Illustrative Example
Motor Vehicle Price: R450 000.00
Repayment Period: 60 Months
Interest Rate: 10%
Balloon Payment: R0.00
Once-off Initiation Fee: R1 207.50
Monthly Admin fee: R69.00
Monthly Repayments: R9 677.07
Note: Please that when you make use of the MFC calculator, the figures you get are only a guideline. This is because MFC has no control over the information and variables entered by the users. Always contact MFC directly to confirm the figures and get an accurate quote.
MFC Vehicle Finance Application
Once you have found your dream vehicle and now know what you can afford, you can proceed with application for finance.
MFC application for finance can be done through one of their many approved dealers or by submitting an application directly to their client centre.
Alternatively, you can submit and online application.
To submit an application, you’ll need to meet certain conditions. You need to be a South African citizen or permanent resident, 18 years or older, permanently employed with a minimum salary of R6 500 per month. In addition, you must have a valid South African driver’s licence with no endorsements. Also, a good credit record is essential.
Required documents are as follows;
- A copy of your valid South African ID
- A copy of the front and back of your South African drivers’ licence
- Proof of income, no older than 3 months
- Salaried individuals – latest 3 months payslips
- Commission earner – latest 3 months payslips and 3 months stamped bank statements
- Proof of residence not older than 3 months
- For Private-to-Private finance, please ensure to have the vehicle details, the sellers name and surname and their cell phone number
MFC Auction
MFC holds regular auctions of various vehicles at locations throughout the country.
We recommend taking a look at the MFC auction as you might just find a vehicle that you are interested in bidding on.
Auction catalogues can be found on the MFC Auctions website (www.mfcauctions.co.za). These will give you details of upcoming auctions and the vehicles that will be auctioned.
However, if you are to attend an MFC Auction, make sure you do your homework before attending.
Once you have done your homework, you’ll find that the auction process is simple and easy.
A few things to keep in mind; observe the auction process, find out how to register and find out how to bid.
TIP: Remember that you will not be the only one submitting bids for a vehicle. Always know your budget and it’s important to stop bidding if bids exceed your budget. You can always try another auction.
One important thing you’ll need to have in place is pre-approved finance. This is because if you have successful bid, most auction houses will give you 3 working days to pay for an collect your purchase.
Benefits of MFC Vehicle Finance
The first benefit is the world class service you’ll get from the second biggest financier in the retail market.
MFC has been around for years and have assisted many South Africans over the years. They are backed by Nedbank, one of South Africa’s top four banks. Knowing all this will give you needed peace of mind.
MFC has partnerships with Imperial, AMH, Kia and Auto Pedigree that you can benefit from.
You can deal with any of the over 2 400 approved dealerships that they have.
Conclusion: Stop dreaming about driving your dream vehicle and make it a reality when you apply for MFC vehicle finance. They are reliable, trustworthy and efficient.
MFC Contact Details
If you wish to get more details you can use the following MFC contact details to get hold of them.
Online Applications
Telephone: 0860 879 900
Email: Mymfc@mfc.co.za (Technical support)
Mon – Fri: 8:00 – 16:30
Sat: 8:00 – 12:00
Auctions
Telephone: 011 879 9321
Email: MFCAuctionhouse@mfc.co.za
Vehicle Cover
Telephone: 0860 879 900
Mon – Fri: 8:00 – 16:30
Payment Problems & Compliments/Complaints
Telephone: 0860 879 900
Head Office Physical Address:
Nedbank Ltd
135 Rivonia Road
Sandown
Sandton
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