A growing trend is to finance your car through a personal loan. Various factors have contributed to this local phenomenon over the last couple of years:
The credit criteria for personal loans differ from that of normal vehicle finance, resulting in more and more people opting for loans.
Vehicles older than 5 years have lost significant book value. Asset financiers will feel they have less recourse to such vehicles and their approval rate on older cars is therefore more conservative.
The personal loans process is much easier and quicker than the finance process, with less paperwork.
Because there is no recourse to the asset, interest rates are higher with loans than with finance.
Use the calculator below to calculate how much you can afford to borrow.