Do I need a driver’s licence to finance a vehicle?


A vehicle cannot be financed without the purchaser having a valid driver’s licence.  A nominated driver is not acceptable as this constitutes third-party finance, which the banks do not offer. A nominated driver will only be considered for medical reasons and a medical certificate from a specialist will be required in this regard.


Is insurance required and if so what type ?


Fully comprehensive insurance cover is required for all vehicles financed. It is compulsory to keep your vehicle comprehensively insured against third-party claims, and against loss or damage, for the full period of the finance agreement


Am I eligible to apply for finance if I am currently under debt review?


Unfortunately not.


What is the difference between a linked rate and a fixed rate?


When financing your vehicle, you have the option of having either a linked (variable) interest rate, or a fixed interest rate. A linked interest rate is linked to the prime lending rate, and therefore the monthly instalment could vary during the loan term. Having a fixed interest rate (usually higher than a linked interest rate) means that the monthly instalment remains unchanged for the duration of the agreement


Who can I buy my vehicle from to enable Motorlease to facilitate the transaction on my behalf?


Your vehicle needs to be purchased from a private seller and not a dealer.


What constitutes a private deal?


A private deal takes place when the transaction is between a private seller and a private buyer with no dealer involvement.


Can Motorlease arrange finance for older vehicles?


Vehicles up to 10 years old can be financed.  Certain vehicles older than ten years can be financed – terms and conditions will be agreed upon according to the vehicle and risk involved


What is the maximum period of the finance agreement?


Dependent on the make and model, vehicles can be financed for up to 72 months.


What are the requirements for a non-South African citizen with permanent residence?


  • Copy of bar-coded identity document or passport.
  • South African driving licence.
  • Employment contract.
  • Residence permit (applicable to passport holders)


Is a deposit required?


A deposit is not always required.  However, it is within the Bank’s discretion to request a deposit.


What is a balloon payment?


This mechanism enables you to pay a reduced monthly instalment. It means that you can defer a percentage of the purchase price until the end of an instalment sale or lease agreement. This may improve your monthly cash flow, but the full amount is still payable over the period (including interest on the balloon payment).


What interest rate will I be charged?


The NCA (National Credit Act) specifies the maximum interest rate that you can be charged. Within this boundary, the Bank will determine the interest rate by assessing your credit rating and credit history (the status of your finances – how much debt you have).


What other costs will I be liable for?


Apart from the principle debt, the Bank will charge you a once-off initiation or processing fee as well as a monthly service fee.

Motorlease will charge you a risk assessment/administrative fee to facilitate the private transaction as well as a registration and licencing fee.  These fees will be added to your principal debt together with any optional extras – for example, the cost of an extended warranty, credit life insurance, scratch and dent etc.


I have never bought a car before.   Will I need a guarantor/surety?


(A guarantor is a person who agrees to pay your debt for you if you can’t pay it.)  You may be asked to provide some form of security, which could be in the form of a person who is willing to stand surety for you. All credit applications are open to negotiation. If you are able to offer a surety, you may be able to obtain finance more easily.


Will I own the vehicle at the end of the agreement?


In the case of an instalment sale, YES – ownership passes to you automatically at the end of the agreement once you have paid all amounts you owe.


If I have no credit references will I qualify for vehicle finance?


The following factors are considered when applying for finance:

Factors include:

Repayment – The ability of the customer to consistently repay the required instalments over the term of the contract.

IncomeThe nature of the customer’s income sources is an important consideration. This is in order to determine how reliable the customer’s income or cash flow is for the duration of the contract.

Potential behaviourThe potential payment behaviour of the customer based on known or recorded history is a factor.  This is where the previous conduct of the customer’s bank accounts is very useful.  Credit references from previously held credit facilities provide a better indication of the repayment behaviour of customers.

No previous credit facilitiesIf a customer has had no previous credit facilities to provide the required behavioural history, financial institutions may still consider other information that is useful to determine the potential conduct of the customer.

These include:

– The historical behaviour of the customer’s transactional accounts reflected in his or her monthly account statements;

– The payment history on non-credit facility accounts like a Telkom account, cellphone accounts, electricity and water accounts.

Credit bureaus are able to provide ratings to financial institutions based on these types of accounts.