Getting vehicle finance even for a private sale

South Africa’s used car market is bustling, with private sales being a common occurrence. Opting for a private sale might even save you some money compared to buying from a dealership. However, both buyers and sellers need to tread carefully to avoid any potential headaches. In this article, we will explore how you can secure vehicle financing for a private sale and ensure a smooth transaction for everyone involved.

What Private Sellers Need to Consider

If you’re selling a car privately, it’s essential to know its value before setting a price and advertising it. While book value is a good starting point, several other factors come into play. Consider the demand for the car, its age, mileage, and any costly extras you may have added. Warranty coverage and even the color of the car can affect its demand in the second-hand market. By taking these factors into account, you can set a realistic expectation for the selling price.

What Private Buyers Need to Consider

As a buyer, doing your homework before purchasing a used car is crucial. Verify that the seller is the legitimate owner, thoroughly inspect the car for its condition, check for a complete service history, and confirm if the vehicle has been involved in any accidents. It’s also important to determine if the car is still covered by a warranty, if the mileage is acceptable, and if it has undergone a DEKRA safety check. Make sure the car meets all these conditions before making a purchase.

Read more  How long does it take to get a home equity loan?

You can ensure that the process is safe and secure for both parties.

Good Reasons to Finance a Private Car Sale through MFC

If you qualify, MFC (a division of Nedbank) offers vehicle financing for second-hand cars that are no older than 10 years, valued at R50,000 or more, and not recovered stolen vehicles. Financing your private sale through MFC has the advantage of safeguarding both the buyer and the seller from fraud or deceit.

When granting a loan for a private sale, MFC takes care of the following:

  • Administration, verification, and re-registration of the vehicle.
  • Ensuring that the seller conducts a technical inspection and obtains a roadworthy certification.
  • Making payment to the seller or the finance provider if the seller still has an outstanding vehicle loan.
  • Ensuring that the vehicle has an existing warranty or assisting in purchasing one.

Required Documents for the Transaction

Both the buyer and seller need to submit specific documents to MFC to complete the financing process.

Buyers must provide:

  • Valid South African identity document
  • Copy of their driving license or both sides of their driving license card
  • Proof of income
  • Proof of residence
  • Details of the car on sale
  • Contact details of the seller

Sellers must provide MFC with:

  • Certified copy of their identity document
  • Proof of address and banking details
  • Proof of full ownership of the car (no outstanding payments)
  • Settlement letter from the financing institution if the vehicle is still financed
  • Original registration document
  • Signed Notification of Change of Ownership (NCO) form

Additionally, sellers must settle any outstanding license fees, traffic fines, and toll fees before finalizing the transaction. Personalized number plates should also be removed.

Read more  How to write a business plan for a bank loan?

Once MFC has received all the necessary documents and determined the buyer’s creditworthiness, a loan can be granted, enabling the purchase of the vehicle. A new NaTIS vehicle registration certificate is then issued, confirming the change of ownership. By choosing MFC to finance your private vehicle purchase, you can ensure a safe and secure transaction for both parties.

Did you know that by taking out MFC vehicle finance and opening a Nedbank Savvy Plus or Savvy Bundle Account, you can receive R200 a month cashback for the duration of your loan? Simple Money Tips – Steps To Financial Freedom can provide you with an affordable car loan tailored to your needs, as well as value-added extras like cashback. Choose the bank that’s best for your money.

To learn more about financing your private car sale through MFC, visit Simple Money Tips – Steps To Financial Freedom.