Not to worry! is here to break up the fight.

Qualifying for vehicle finance rand buying a car on finance may seem insignificant, but in actual fact, it’s one of life’s many milestones as it provides a sense of newly-found independence and freedom.

But be that as it may, getting affordable car finance can be a daunting experience for new car buyers, due to the significant financial commitment and complex financial terms dropped on first-time car buyers.

Receiving leadership advice from leaders in vehicle finance, CarZar has developed an exclusive Vehicle Finance Repayment Calculator provides a quick and easy way to discover the cheapest car loan solution owed to your vehicle financier, whether you possess an excellent, good, fair or poor credit history.

Our car finance calculator uses a unique algorithm which takes into account the new or second hand car’s purchase price, annual interest rate, yearly period, initiation fee, balloon rate and value, and the compulsory admin fee in terms of the National Credit Act.

Alternatively, if you’re looking to sell your financed car, at CarZar, we buy cars and make an instant cash for cars payment.

Here are a few tips on how to manage your vehicle finance repayments.

Review your budget

According to The Citizen, around 65% of South Africans buy cars on finance. For those South Africans who have, note that’s it’s not just about how much you can afford. The most important factor to consider in your list of vehicle finance requirements is your budget.

If you’ve gone as far as to accept the vehicle finance option, which you’ve qualified for, it’s essential to add the car loan monthly repayment amount to your expenses budget. Why? Well, the more expensive your car, the bigger your car loan and the more you’ll have to pay back to your vehicle financier. You’ll therefore need enough money saved up to #paybackthemoney. If you’ve stashed away some money to buy a car for cash, your budget therefore will be determined by your savings.

Not sure how much you should be saving to pay off your vehicle finance repayments? Calculate your monthly car finance instalments with CarZar’s vehicle loan instalment calculator.

Factors of car affordability

Meeting the finance institution’s vehicle finance criteria is one thing, but being able to actually afford the costs of vehicle ownership is another.

When budgeting for your monthly car finance instalments, do not forget to take into account:

  • Fuel
  • Maintenance/servicing
  • Insurance premiums
  • Unexpected repair costs, tyre changes or valets

All of these costs should add up to less than your total budget – leaving room for any market fluctuations in these expenses.

Have you selected the right vehicle plan?

You may have met the criteria and requirements for a few vehicle finance plan, but it doesn’t mean it’s the right option for your new car purchase.

Each car finance plan is generally adjusted to cater for one’s car affordability. Despite calculating and adding your monthly vehicle repayments to your budget, another rule of thumb when it comes to vehicle finance, is selecting a new or second hand car that suits your needs and opt for a car finance option tailored to your car and budget.

So, consider the following:

  • Should I buy a new or used car? – If you’ve already bought a car that’s not fitting for your vehicle finance option, get a free online quote for your car on, receive an obligation-free inspection from an independent professional inspection service Dekra and get instant cash for cars from CarZar.
  • Does the car have a service or maintenance plan?
  • Do I want or have an automatic or manual gearbox?
  • Will I be driving off-road or taking long road trips?
  • Is the car for work purposes?
  • Do I need a lot of seats to transport more passengers/do I have or want children?
  • Does the car have safety features and is it a neutral colour?

Get in touch with your F&I

It’s vital that you’re aware of what you’ve signed up for in buying a car

If you’re unsure of anything, call up your dealership’s Finance and Insurance executive to clear up some unfamiliar jargon in the contract, in order to receive the reassurance you need about your selected car finance plan.

The F&I’s role is regulated by the Financial Advisory, Intermediary Services (FAIS) Act and National Credit Act (NCA). They are, therefore, legally obliged to give you financially sound advice. If you don’t have one, then you might want to look into getting one through online directories of financial advisers wherever it is you reside.

Modify your contract

Thanks to the National Credit Act, banks are obligated to structure your vehicle finance contract to provide the perfect match to your car affordability – thus allowing you to structure the car finance contract according to your desired:

  • Vehicle finance repayment term
  • Interest-type
  • Optional deposit
  • Optional balloon payment

To get a breakdown on each vehicle finance option and discover the flexibility in structuring your contract to ensure you can pay-off your car loan, read:

CarZar has your back! Vehicle Finance Repayment Calculator

Cut-down on the no-value-added extras

Once you’ve calculated your monthly vehicle finance repayments, along with all ownership costs and ‘on-the-road’ fees – licensing, registration and administration – and added it to your monthly budget, you may notice a decrease in left over income.

The solution: Be aware of non-compulsory, additional costs on your budget! Unless you’re budgeting to pay for any monthly security services, vital groceries, compulsory levies, rates, water, electricity, maintenance and transport costs; you can actually consider flogging those high-priced clothing accounts, credit cards, donations, dstv/television, entertainment, furniture accounts, overdraft and telephone/internet.

Once you’ve revised your budget to remove unnecessary expenses, you may see a small decrease in left-over income after you’ve paid your car loan installment due.

Know your monthly vehicle finance repayments

If you’re looking to sell your financed car or thinking about buying a car on finance, then CarZar’s vehicle finance calculator is the perfect solution to figuring out the figures required to help set your budget. Set a comfortable, affordable budget for your financed car and get a free, instant calculation to your monthly loan repayments.