Vehicle finance is one of the best inventions of the 19th century, as it allows customers to purchase a vehicle when they need it. Furthermore, many finance institutions provide a host of other benefits along with the finance in order to keep the maintenance side of things in check. Add-ons such as insurance, maintenance plans, and garage cards are all part of making things a little easier on the road. Standard Bank Vehicle Finance provides customers with a fast turnaround time and some of the best rates in the industry. This review takes a closer look to see what makes this finance option so popular.
Deutsche Bank also provides loans to their customers. Read here to find out what they scored.
About Standard Bank
Standard Bank was introduced to the South African public in the sixties. As a subsidiary of Standard Chartered, Standard Bank South Africa is one of the leading banks in South Africa. It also happens to be the biggest bank on the African continent based on asset value.
Furthermore, the functions were predominantly focused on commercial investment and growth, however, the retail portion of the bank seems to be well received by the general public. It offers a range of services and products to meet everyday banking needs.
We recently did a full review on Standard Bank. Read the review here.
The Link Between the Credit Bureau and Vehicle Finance
Customers who wish to purchase their first vehicle will undergo a series of checks and balances to ensure they are able to meet the monthly obligations.
This is one of the main things Standard Bank looks at when customers apply for finance. This is often determined by the letter of drawings for a business owner and sometimes even the financials. For salary earners, it’s the payslip. Those who don’t bank with Standard Bank will also need to provide 3 months’ bank statements to verify income. The application form will detail the income and expenditure, ensuring that customers have enough income to cover all their expenses.
Willingness to Pay
The credit bureaus are a good indication of whether customers have a natural willingness to pay. Missed and late payments are often an indication that something is wrong, and the burden of another payment might just put customers in a worse position. The other means of determining willingness to pay is by scrutinizing the bank statements. These often reveal underlying issues such as how customers prioritize their debt.
Sustainability of the Payments
Customers may have a clear history of payments and have all their payments on time, however, there might not be a continuation of income. Business owners and contract workers are especially vulnerable to these conditions and a proper assessment needs to take place. When this is in question, financials or proof of contracts need to be provided.
Standard Bank Vehicle Finance Product Offerings
Buying a New Vehicle
This type of finance is suitable for those who are over the age of 18 and have a good credit record. Furthermore, those who are not South African citizens need to have a permit and a Standard Bank transactional account.
This is a finance type that allows customers to pay the agreed amount over a specified term. At the end of the term, once the final payment is made, the vehicle belongs to the customer.
- With this finance option, the deposit required is negotiable.
- Furthermore, the customer can decide on a fixed or variable interest rate.
- Also, customers can open an AccessFinance account that allows them to deposit extra cash to reduce the interest payable on the loan.
- Customers can choose a loan period of 84 months for new cars and 72 months for used cars.
- Ownership is automatically passed over to the customer at the end of the period.
- Also, customers are required to provide comprehensive insurance for the duration of the period.
- Finally, early settlement penalties only apply to deals over R250,000.
For more information about the insurance products Standard Bank provides, read here.
This finance option is suitable for those who constantly need to upgrade their vehicles. After the agreed term, customers have the option to take ownership of the vehicle or not.
- Customers have the option to go with a variable or fixed rate option.
- Also, the deposit amount on the vehicle is negotiable.
- This account also allows customers to open an AccessFinance account where they can deposit their surplus funds. This allows them to save on their interest.
- The loan term is up to 84 months for new cars, and 72 months for used cars.
- At the end of the period, customers can return the vehicle and Standard Bank will settle on their behalf. Customers also have the option of acquiring ownership. This agreement can also be extended at the end of the initial agreement.
- Early settlement penalties only apply to agreements over R250,000.
- Finally, customers are required to provide comprehensive insurance.
Vehicle Finance Calculators
These calculators are designed to assist future owners to determine whether they can afford the vehicle they wish to purchase or not. These calculators offer a rough example of the expected repayments, which will allow customers to adjust their budgets accordingly. These aren’t to be mistaken for a proper agreement with the bank, however.
7 Simple Steps How to Apply for Vehicle Finance
This is the pre-screening criteria that customers have to meet. These criteria are:
- Customers need to be over the age of 18 to apply.
- Those who are not South African Citizens, will need to provide a valid passport and a permit. Furthermore, they will also need a Standard Bank transactional account.
- They are also required to have a good credit record.
This step takes customers through the amount they have to spend. This takes them through the income and expenditure calculations. Here, they will enter their estimated installment and insurance expenditure as well.
Once there is an amount available on what the customer can afford per month, they can calculate their repayments. It is recommended that customers be honest here to ensure they can afford the loan.
Customers now have an installment in mind and can go ahead and choose a car that matches the price category.
At this level, customers will then apply for finance for the vehicle.
Once the finance is approved, customers can arrange their insurance.
The customer takes delivery of the vehicle and they’re on the road.
What We Like About Standard Bank Vehicle Finance
This type of finance provides customers with fast access to get on the road. The application process is simple and easy to understand. Customers are not required to sit in long queues to meet with a banker in order to sort their finance out, which is a big plus. Furthermore, pre-screening sorts out many of the little hiccups that tend to crop up later in the application.
Customers have the option of straightforward installment finance or a lease agreement. This means both customers who wish to hold onto their vehicles and those who prefer to change them often have the best finance opportunities.
Finance options also offer variable and fixed interest rates, which provides customers with the means to accurately plan their budget.
Finally, Standard Bank also offers many of the additional bells and whistles customers may wish to add to their finance, such as insurance. This allows customers to do everything in-house.
What We Don’t Like About Standard Bank Vehicle Finance
The finance options state that it is for vehicle and asset finance, however, there is very little information on the asset finance bit. Customers will have to fish around for information a bit if they wish to finance other items such as caravans, boats, jet skis, and more. Also, other terms and conditions may apply.
Critical Reviews Rating Standard Bank Vehicle Finance – 9 of 10
This is one of the fastest banks when it comes to vehicle finance, and many of the terms of the contract are negotiable. This includes the interest rate and deposit, which often allows customers to have the deal structured a little more in their favor. Furthermore, the contract conditions are pretty straightforward and as long as customers keep to their end of the agreement, vehicle finance with this institution is smooth sailing.
One of the other aspects of vehicle finance that puts Standard Bank right up there with the best is the fact that it allows customers the opportunity of early settlement of deals under R250,000 without worrying about a penalty. This allows customers greater freedom to manage their debt more effectively.
Finally, the only item that can use a little more attention, is the asset portion of vehicle finance. Provide customers with a bit more information to allow them peace of mind when requesting a proforma invoice from dealerships. Overall, this is an efficient and well-equipped finance division that Standard Bank can be proud of.
We also did a review of the Standard Bank Loans, which offer a bit more variety. Read up on it here.