WBC Capitec car loan

ronz91

ronz91

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Hi there

I have a couple questions regarding purchasing a B-rated car from WBC via Capitec.
  • What is the difference between this and a normal car loan in practical terms? I know its an unsecured loan.
  • Can I pay it off early as I want like a normal car loan?
  • Do other financial institutions offer similar loans?

Thanks
 
Glorified personal loan, interest rates are high and it for their cars that won't get financing according to WBC requirements. I would be hesitant to borrow money on car that wouldn't "qualify" for normal finance due to its condition. Most likely to be unreliable and then on top of your monthly loan obligation you will have maintence costs.
 
ronz91 said:
Hi there

I have a couple questions regarding purchasing a B-rated car from WBC via Capitec.
  • What is the difference between this and a normal car loan in practical terms? I know its an unsecured loan.
  • Can I pay it off early as I want like a normal car loan?
  • Do other financial institutions offer similar loans?

Thanks
Click to expand...
As far as I know this is a personal loan.
So standard personal loan rules apply.
 
If you are going to gamble on b-rated WBC cars, don't do it on a personal loan.. you'd need a second personal loan to get it road worthied and whatever else is faulty, fixed..
 
Grubscrew said:
Glorified personal loan, interest rates are high and it for their cars that won't get financing according to WBC requirements. I would be hesitant to borrow money on car that wouldn't "qualify" for normal finance due to its condition. Most likely to be unreliable and then on top of your monthly loan obligation you will have maintence costs.
Click to expand...
Direct to-the-point answer.
 
Grubscrew said:
Glorified personal loan, interest rates are high and it for their cars that won't get financing according to WBC requirements. I would be hesitant to borrow money on car that wouldn't "qualify" for normal finance due to its condition. Most likely to be unreliable and then on top of your monthly loan obligation you will have maintence costs.
Click to expand...
killerbyte said:
As far as I know this is a personal loan.
So standard personal loan rules apply.
Click to expand...
WAslayer said:
If you are going to gamble on b-rated WBC cars, don't do it on a personal loan.. you'd need a second personal loan to get it road worthied and whatever else is faulty, fixed..
Click to expand...
FiestaST said:
Direct to-the-point answer.
Click to expand...
Tman* said:
You should walk away from WBC.

Not even considering your other variables / minefields
Click to expand...

Even on a budget hatchback Toyota for under R75k?
 
ronz91 said:
Even on a budget hatchback Toyota for under R75k?
Click to expand...
What kind of car, condition mileage?

Remember WBC first put of their vehicles on auction when then get them, maybe once or twice before they hit the floor. So if the particular vehicle is a good seller\volume seller I would be extra cautious why hasn't it been sold yet.

For R75k and if it will take R10k to get it hundreds, then maybe. But I doubt that it will only require a little maintenance, if so someone would have bought it, fixed it and then sold it on again.
 
@ronz91 banks will finance up to 15 year old cars. The older, the larger deposit they may require.

However, hopping on Autotrader, filtering to only include 2010 and up and sorting from lowest value shows cars starting at R45k.

Now, I'm not advocating for any of those cars, but it does show that there are bank financeable options which is a FAR better approach in my opinion.

e.g. https://www.autotrader.co.za/car-fo...841?vf=2&db=1&s360=0&so=1&pl=1&pr=5&po=1&pq=0
 
ronz91 said:
Hi there

I have a couple questions regarding purchasing a B-rated car from WBC via Capitec.
  • What is the difference between this and a normal car loan in practical terms? I know its an unsecured loan.
  • Can I pay it off early as I want like a normal car loan?
  • Do other financial institutions offer similar loans?

Thanks
Click to expand...
Major difference is that you own the car from day 1, and yes you can pay off the loan earlier, but there might be settlement fees etc.

As to the choice of car etc, that's entirely up to you to do your homework properly. I believe that interest rates are risk and profile related and in some cases can be relatively reasonable. Go into a branch and chat, they will give you a pre approved amount with your interest rate, then decide.

A work colleague recently did all this but hasn't purchased anything as yet.
 
MFC and the Wesbanks of the world don't finance cars under about R120-R150k if I'm not mistaken. It could be a WBC policy though. I recall my colleague had some issue with them where they wouldn't even consider finance for cars below a certain amount. Maybe R100k.
 
netstrider said:
MFC and the Wesbanks of the world don't finance cars under about R120-R150k if I'm not mistaken. It could be a WBC policy though. I recall my colleague had some issue with them where they wouldn't even consider finance for cars below a certain amount. Maybe R100k.
Click to expand...
Yeah, probably someone wanting to upsell your colleague on a more expensive car, because I have financed a car much lower than that previously with Wesbank.
 
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