GET UP TO 6 BENEFITS IN 3 EASY STEPS!
You can reduce your current monthly instalment on your vehicle by refinancing your existing credit agreement. You might have purchased your vehicle with a high-interest rate and you now qualify for a lower rate, this can potentially save you thousands of rands during the remainder of your loan agreement. Another option is to extend the term of your current loan agreement which will also reduce your monthly instalment significantly. To refinance your vehicle you need a healthy credit rating, statistics have also shown that refinancing a car can potentially boost your credit rating as you are settling a previous agreement before the loan term expires.
Lowest Monthly Payment (extended term)
| Total Loan | Interest Rate | Term | Monthly Payment | Total Interest | |
| Original one year | R200 000.00 | 13% | 72 | R4 108.06 | R89 604.86 |
| New loan now | R175 000.00 | 11.75% | 72 | R3 491.03 | R75 146.33 |
| Total Savings | R617.03 | R14 458.53 |
Pay Off The Loan Sooner (reduce term)
| Total Loan | Interest Rate | Term | Monthly Payment | Total Interest | |
| Original loan 1 year ago | R200 000.00 | 14% | 72 | R4 215.03 | R102 274.61 |
| New loan now | R175 000.00 | 11.75% | 60 | R3 966.41 | R61 777.34 |
| Total Savings | R248.62 | R40 497.27 |
Get Cash Out (Refinance for market value)
| Total Loan | Interest Rate | Term | Monthly Payment | Total Interest | |
| Original loan | R200 000.00 | 13% | 72 | R4 108.06 | R94 572.86 |
| Outstanding | R80 000.00 | ||||
| Refinance for Market Value | R150 000.00 | 11.75% | 60 | R3 413.46 | R53 599.86 |
| Total Cash-Out | R70 000.00 |
Are you aware that you can save on your credit card debt with the equity in your car?
Below is a good example of how you can do just that by refinancing your vehicle to pay off more expensive credit card debt.
| Loan Terms | Credit Card | Vehicle Refinance |
| Loan amount | R30 000.00 | R30 000.00 |
| Interest Rate | 25% | 11.75% |
| Loan Duration | 24 months | 24 months |
| Monthly Instalment | R1 734.59 | R1 534.40 |
| Total repayment | R41 630.16 | R36 825.71 |