Buying on finance
Deposits, terms and balloon payments in plain words.
The deposit
- Banks usually ask for a deposit. Bank Windhoek says this is typically 10% of the car's price.
- A bigger deposit means smaller monthly payments.
How long you pay
- Bank Windhoek offers terms from 12 to 72 months.
- A longer term means smaller monthly payments, but you pay more interest in total.
Balloon payments
- A balloon payment is a big amount you pay at the end. It makes the monthly payments smaller.
- The car may be worth less than the balloon at the end, so plan how you will pay it.
Insurance
- FNB Namibia says all its finance agreements need the car to be comprehensively insured for the whole period.
- Get an insurance quote before you sign, so you know the full monthly cost.
Frequently asked questions
How much deposit do I need for car finance?
Bank Windhoek says you typically pay at least 10% of the car's value. Nedbank Namibia asks for 10% on cars up to 5 years old and 15% on cars 6 to 10 years old.
Can I get finance on an older car?
Nedbank Namibia finances cars up to 10 years old. The older the car, the shorter the term: for example 60 months for a 6-year-old car and 12 months for a 10-year-old car.
Should I take a balloon payment?
A balloon makes your monthly payment smaller, but you owe a big amount at the end. At the end you must pay it, refinance it, sell the car or trade it in, and refinancing may not be approved. The car may also be worth less than the balloon.
What documents do I need to apply?
Nedbank Namibia asks for your ID or passport, proof of income or your latest salary advice, and 3 months' bank statements if you bank elsewhere. If you are married, it also asks for your marriage certificate or antenuptial contract.
Which bank gives the best car finance?
Get quotes from more than one bank and compare the interest rate and the total cost. FNB Namibia says its interest rates are negotiable and can be fixed or variable.