Applying for used vehicle finance in South Africa? Here’s a clear guide on what documents you’ll need based on your employment type, from permanent staff to self-employed, foreign nationals, pensioners, and companies.
Understanding Employment Types and Required Documents for Vehicle Finance
When applying for used vehicle finance in South Africa, your employment type directly affects what documents you’ll need to submit for your application. While requirements are fairly standard, banks may sometimes request additional documentation based on your situation.
To make the process smoother for you, here’s a breakdown of the most common employment types and the documents typically required for each.
Permanent Employees
A person that is employed on a permanent, ongoing basis.
Documents required:
- Valid South African ID in your possession
- Valid driver’s license
- 3 months’ stamped bank statements reflecting latest three salary deposits
- Latest 3 payslips
- Proof of address (not older than 2 months)
Important notes:
If you’ve been employed for less than 3 months, banks will likely request your employment contract as well as payslips from your previous job. Salary amounts reflected on your bank statements must match your payslips, and all legal deductions should appear on your payslip too. Gaps between employment can complicate approvals significantly.
Fixed-Term Contract Employees
Employees working for a limited period under contract which is normally referred to as a fixed term contract.
Documents required:
- Valid South African ID in your possession
- Valid driver’s license
- Proof of address (not older than 2 months)
- 3 months’ stamped bank statements reflecting latest three salary deposits
- Latest 3 payslips
- Copy of your employment contract
Important notes:
Most banks will only approve vehicle finance for the remaining duration of your contract. If you have a 2-year contract with 16 months left, your finance term would typically only run for 16 months. This will also only be based on your affordability to cover the higher instalment amount.
Self-Employed Applicants & Commission Earners (No Basic Salary)
Business owners, freelancers, sole proprietors, or individuals earning 100% commission-based income.
Documents required:
- Valid South African ID
- Valid driver’s license
- Proof of address (not older than 2 months)
- 6 months’ stamped business or personal bank statements reflecting income
Important notes:
Banks generally require applicants to have been self-employed for at least 2 years before considering finance. If you’re a commission earner without a basic salary, you’ll fall into this category.
Company & Trust Applications
Registered companies, close corporations, or trusts applying for vehicle finance in the business’s name.
Documents required:
For companies:
- Completed company application forms
- Individual application forms and IDs for all members/directors
- Company registration documents (CIPC)
- Proof of address for both the business and directors (not older than 2 months)
- 6 months’ stamped business bank statements
- Business traffic registration certificate (applied for at the traffic department)
For Trusts:
- Full Trust Deed
- Trust Letter of Authority
- Completed application form for the Trust and IDs for Founder, Trustees and Beneficiaries (no income/expenses needed)
- Copy of ID for each of the Trustees
- Proof of address (not older than 2 months) for each Trustee
For other shareholders:
- Application forms and IDs (no income/expenses needed)
Pensioners / Retired Individuals
Retired individuals with a consistent monthly income (from a pension, part-time work, or other income source such as a rental).
Documents required:
If employed:
- Valid South African ID in your possession
- Valid driver’s license
- 3 months’ stamped bank statements reflecting latest three salary deposits
- Latest 3 payslips
- Proof of address (not older than 2 months)
If self-funded (e.g. rental income): same as self-employed applicants
• Valid South African ID
• Valid driver’s license
• Proof of address (not older than 2 months)
• 6 months’ stamped business or personal bank statements reflecting income
Important notes:
Approval will depend on your monthly income and ability to afford repayments over the finance term.
Foreign Nationals
Non-South African citizens living and working in South Africa.
Documents required:
- Valid passport
- Valid work permit
- Employment contract (if applicable)
- Latest 3 payslips
- 3 months’ stamped bank statements
- Proof of address (not older than 2 months)
- Traffic registration certificate (obtained through the traffic department)
Important notes:
Finance terms are typically limited to the duration of your valid work permit.
Common Causes of Delays
- Employment gaps without supporting documents
- Salary amounts on payslips not matching bank deposits
- Missing statutory deductions on payslips
- Outdated or incomplete proof of address
- Insufficient bank statement history
Final Thoughts
Being organised with the right documents based on your employment type can fast-track your finance application and improve your approval chances. At Motorlease Vehicle Finance, we manage private-to-private vehicle finance and guide our clients through every step. If you’re considering financing a used vehicle, or need clarity on the paperwork required, get in touch with us for tailored advice and a seamless application process.