Absa Vehicle Finance is product from the Absa Group. It facilitates individuals and commercial entities the facility to get help with vehicle finances. ABSA offer a range of retail, business, and personal solutions in South Africa.
How Does Absa Vehicle Finance Work
When you sign up to ABSA Vehicle Finance product you are taking on finance loan with monthly repayments which are secured against your vehicle.
First you must submit a vehicle loan application to secure the vehicle finance agreement can be made. This is so ABSA knows you will be able to pay the monthly instalments, you will have to provide bank statements or salary slips as proof of income. You can usually choose the loan term you would to apply for this can be anywhere between 12 to 72 months based on new and used vehicles. You can finance the used vehicle for up to 60 months.
You will usually be asked to pay an initial deposit and administration fees and then pay a monthly instalment with a balloon payment at the end of the finance contract.
One of ABSA’s main benefits is that they offer a zero percent initial deposit, which means a customer can start financing a car without paying any initial payment or down payment.
At the end of the finance contract, there is the option of a balloon payment. This is a lump sum payment that you have to pay at the end of your loan term in order to settle the loan.
Another benefit of ABSA is that they are on of the fastest vehicle finance providers and can sometimes approve loans within 24 hours.
How To Pay Absa Vehicle Finance?
Absa offers you to create a car loan account using their online banking app. Here you can view details of your account, all the installments made, and all necessary information. Using the application, customers can access their accounts 24/7.
You can make additional payments on your vehicle finance. One can request a copy of the documents related to your vehicle. The settlement letter can also be obtained using the Absa banking app.
To pay your monthly installments, you need to log in to their banking app and pay the funds using a debit card. One can also approach the ATM and perform an inter-account transfer. The facility of depositing cash is also available that you can visit any Absa branch and make the deposit. Some ATMs also accept cash for the monthly installments. These are the widely accepted payment methods by Absa for vehicle finance.
Absa Vehicle Finance Calculator
Absa vehicle finance calculator lets you calculate the needed monthly repayment amount based on the total amount of loan you get. The Calculator is easy to use where you just need to enter the amount, and it displays you the monthly Emis. The Calculator makes it easy to have an idea of how much you would be paying each month after getting your dream car. Besides, you can figure out a better loan amount by trying out various numerical strategies.
However, it is not compulsory to use the Calculator, but using it gives you an edge that you get an idea beforehand about your monthly Emis. It is better to use the Calculator since you become more sure about the total amount of loan than not using the Absa calculator.
To access the Calculator, you simply need to visit their website and proceed to the Calculator section, and there you are. It is important to know that to finance a private vehicle; you can get a loan amount of R250 000, which is the maximum loan amount while the minimum is R10 000. Their interest rate remains at 12.50%; all other details related to your monthly payments can be planned using the Calculator option.
The Calculator also lets you know if you are eligible for vehicle finance based on your inputs to a few questions. Additionally, this tool brilliantly compares different finance providers to let you make a better decision. This way, you will be sure if you should go with a certain purchase decision or not. You get to know the real amount that you would need to keep separate for the repayments. It also lets you know if you can keep up with the vehicle repayments with your current salary or lifestyle. Thus it is always wise to use the Calculator before proceeding any further with vehicle finance decisions.
You can access the Vehicle Finance Calculator here: https://www.absa.co.za/personal/loans/for-a-car/calculate/
Absa Vehicle Loan Settlement
With all other banking features in the vehicle financing section, Absa bank also provides its customers the facility of vehicle finance settlement.
Settlement is a kind of agreement that happens between the lender and the borrower where the loan is settled even if it’s not completely paid. The bank reduces the loan amount of the borrower by cutting off the processing fee, any late payment penalties. In extreme cases where the borrower has met an extreme accident, the remaining principal amount can be settled too.
The loan settlement is also decided based on the number of EMIs paid. It lies in the lender’s discretion whether to settle the loan or not. Settlements only happen in the case of a serious injury, job loss, medical emergencies, or life-threatening situations.
Once the vehicle finance is settled, the lender closes the amount and marks it as settled, which means the borrower is no longer obligated to pay any amount further.
Should you Opt for Loan Settlement?
Now the question is that “Should You Opt for Loan Settlement?” The answer is No! Not unless you can pay the loan amount by any other means. Loan settlement might sound like an easy way to get rid of paying any further; however, the reality is different. So unless you are ready to face the heavy consequences, don’t opt for loan settlement.
You can also opt for the below options if you would prefer an alternative to a personal loan settlement process (or for that matter any loan)-
Try to repay using any of your financial means such as Mutual Funds, assets, or anything that you can sell or put on rent.
You can also request for extension in your loan tenure. This way, you will get more time to repay your loan; however, you might also have to pay the increased interest.
You can pledge any financial objects like gold and property to opt for a mortgage loan.
ABSA Bank Vehicle Finance Contacts Numbers
Absa is a large group that has subsidiaries. Their vehicle finance unit is one such part of Absa Group. Customers having doubts or queries regarding vehicle financing can make use of the following contact information:
Vehicle Finance Contact Number:
0860 669 669