Car finance in South Africa: why structure is important

Purchasing a vehicle is not a decision South Africans take lightly.

With rising prices, fluctuating interest rates, and constant changes to credit requirements, structuring finance correctly is as important as choosing the right car.

Often, most emphasis is placed on the monthly instalment, but experienced finance professionals working within national dealership groups like Bidvest McCarthy say that affordability is only part of the equation.

Click here to learn more about Bidvest McCarthy.

In 2026, smart buyers are looking beyond the retail price and focusing instead on risk, flexibility, and long-term cost.

Instalments, deposits, and the real cost of finance

Vehicle finance is typically calculated over 36 to 72 months, with interest based on the buyer’s credit profile and prevailing lending rates.

Key variables include:

Deposit
Term
Interest rate
Residual payment (if applicable)

The finance structure needs to be tailored to your individual needs and requires expert intervention.

This is where digital modelling tools come in.

Bidvest McCarthy offers a repayment calculator which allows you to adjust deposit percentages, balloon structure, and repayment terms directly on the page for you to instantly see estimated instalments and principal exposure.

This means you can stress-test affordability before committing to a purchase.

The multi-bank advantage

Bidvest McCarthy has agreements in place with multiple finance houses, which enables us to apply to multiple institutions simultaneously to secure the best deal for you.

In addition, our systems integrate directly into the finance houses’ scorecards, which speeds up the entire process.

Reducing uncertainty with digital finance applications

Online finance initiation has been one of the biggest shifts in automotive retail.

Buyers can now complete a digital pre-application to reduce affordability uncertainty.

Through Bidvest McCarthy’s online finance portal, customers can select their preferred dealership and securely submit personal and financial details for assessment.

This offers the buyer clarity around approval likelihood and better preparation to negotiate the vehicle purchase.

Selling a vehicle while under finance

It is entirely possible to sell a financed vehicle, but equity must be considered.

If the vehicle’s market value is more than the outstanding settlement amount, the owner has positive equity.

If not, the shortfall must be settled or structured into a new agreement.

Through its Sell My Car platform, Bidvest McCarthy allows users to submit their vehicle details, including mileage, registration, and expected price, directly to the nearest dealership to determine valuation and settlement options.