Wesbank finance Archives Page 3 of 3 - Heels & Horsepower Magazine

Five Tips To Success When Applying For Your Car Loan

vuyi on May 11, 2021

In the current economic climate, with increased living costs and the stresses of everyday life in lockdown, many consumers are fearful of being turned down when applying for credit.

Whether it’s a house, credit card or a new vehicle, banks are bound by law, through the National Credit Act (NCA), to ensure that consumers can afford the financial commitments into which they enter. While credit should never be used to live beyond one’s means, it can be a necessity – as in the case with financing a car, which is a major financial commitment.

“While there’s no guarantee that a customer’s application will be approved, there are best practices to follow that can improve one’s credit health and greatly increase the chances of being granted credit,” says Lebogang Gaoaketse, WesBank Head of Marketing and Communication.

1. Establish your affordability

The first step in calculating your budget is finding out how much you can afford to spend on a car. To do this, simply take your income (after taxes and deductions) and subtract all your monthly expenses such as food, rent, airtime, subscriptions, insurance and the like. All these costs need to be deducted from your total income to arrive at your disposable income. This is the money that can be used for luxuries, savings or essential credit, such as monthly car instalments.

Carrying out this budget exercise at home gives you a clear picture of how much you can spend on car instalments.

2. These extras aren’t optional

Remember that affording a car isn’t just about settling the monthly instalment. If you have calculated that you have R5 000 to spend on a vehicle after paying all other monthly expenses, you will need to use that amount to cover the instalment as well as other essentials. Fuel and comprehensive insurance cover are examples of ongoing monthly expenses that need to be budgeted for. If your vehicle doesn’t have a service or maintenance plan, you should also consider putting some money aside each month to cover regular maintenance costs.

These items form part of the overall cost of vehicle ownership and should be included in your budget when submitting your finance application. If your budget allows for these costs, you improve your chances of your application being approved for a car loan.WesBank advises allocating between a half and two thirds of your budget to the vehicle instalment, with the remainder allocated to the additional costs. For example, if you only have R5 000 a month to spend on a car, between R2 500 and R3 000 should be used for the instalment repayment, with the remainder going towards fuel, insurance and maintenance costs.

3. Save up for a deposit

If you’ve demonstrated to the bank that you can budget responsibly, you’ll impress them further if you can put down a deposit payment. While it’s not absolutely necessary to pay a deposit, doing so will work in your favour in the long-term. Paying a deposit reduces the amount of credit required for the transaction, which means lower monthly repayments, less interest and improved affordability. Your ability to afford the monthly repayments is one of the biggest drivers when banks assess your finance application.

Financial responsibility also reflects well on your credit profile, which will also go some way to ensuring your finance application will be approved.

4. Settle as many debts as possible

Your credit profile or credit history shows banks how you use credit. This includes clothing accounts, overdrafts, home loans, personal loans and credit cards. As long as you make your monthly payments on these accounts, your credit profile will be spotless and banks will view you as a reliable borrower.

According to the NCA there are two main types of credit agreements. The first is a credit transaction such as a personal loan, which is taken out and paid off, with interest, over a certain period. With each payment, the outstanding balance reduces over the agreed loan period.

The second type of credit agreement is a credit facility such as an overdraft or a credit card. These are revolving facilities with a maximum amount but also require a monthly repayment of an agreed amount.

When applying for credit, the bank takes all your current and available credit into account. For example, if you have a personal loan that you have been paying off for two years, with a balance of R15 000 and instalments of R1 000, these figures are used in assessing your affordability.

If you have credit facilities such as a credit card with a limit of R50 000 and an overdraft with a limit of R25 000, these amounts are also included in the assessment – whether they are fully used or have a zero balance. These facilities remain in place even after your vehicle finance has been approved and if you do use them then your monthly affordability has to include their repayments. For this reason, the NCA requires the bank to take all credit facilities into account.

The best advice here is to have as little debt as possible, which frees up money in your monthly budget. Once you’ve paid off an account, it is a good idea to close it – or lower the total limit for the facility. The fewer credit facilities you have in your name, the better it looks for your credit profile and your future finance applications.

5. Trading in for the best deal in town

Once you’ve completed the budgeting exercise and calculated what you could afford in a vehicle, you’re ready to visit a reputable, WesBank-approved dealership. One other thing to consider if you own a vehicle is trading in your existing car. If you’ve had your current car for more than four years, chances are that its trade-in value will be more than the money you still owe the bank. This means you’ve passed the breakeven point for your vehicle loan. It also means that the money you make from trading in your car can be used as a deposit towards your new vehicle purchase. The same is true if your car is paid off: the money you receive from that trade-in deal can be put down as a substantial deposit on the cost of your new car.

If your vehicle’s trade-in value is less than the amount you owe the bank, it means you have not yet reached the trade-in value. In this scenario, you will either have to keep your existing vehicle for another couple of months, or you could use some of your savings to assist in settling the existing vehicle loan – though that is not ideal.

Of course, having a trade-in where you don’t have to pay in additional money is going to greatly benefit your car loan application.

“The last thing to keep in mind is to be patient and shop around for the best deal. The new vehicle market is very competitive and, with the current low interest rates, manufacturers have some very attractive offers – some that could help you afford a car and others that offer better value. Find a deal that suits your budget and your needs, and use the advice provided to assist you with your next finance application. If you’ve carefully considered your expenses, calculations and affordability range, your application for finance should be approved,” says Gaoaketse.

Unlocking the lockdown on vehicle sales

vuyi on May 4, 2021

Sales during the first four months of the year remain 28.3% ahead of the corresponding period last year
– Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance

April new vehicle sales told an inspiring story of the South African motor industry’s resilience, while also providing a harsh reminder of the bleak outlook experienced a year ago. With April 2020 sales essentially at a standstill as motor retailers stood closed, the rejuvenated picture a year later, while certainly reassuring, remains under pressure.

In percentage growth terms, the sales dam was over-flowing while the floodgates couldn’t keep up. According to naamsa | the Automotive Business Council, the new vehicle market grew 6,133.3% in April compared to April last year. However, the reality was a little more subdued when considering that April’s 35,779 sales were 17.6% lower than last month – 7,649 units less than March.

“April sales are difficult to interpret within the context of lockdown,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance

“April sales are difficult to interpret within the context of lockdown,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance.

“On balance, April sales lost less against March than March sales had gained against February, meaning the market remains in its state of slow recovery.” March sales had increased 18.4% over February.

Sales during April will also have been impacted by the numerous public holidays, providing fewer selling days during the month. “Reassuringly, however, is that sales during the first four months of the year remain 28.3% ahead of the corresponding period last year.

This is purely as a result of April volumes measured against the 574 sales recorded in April last year. Within this context, first quarter 2021 sales were 0.9% lower than 2020.”

Demand in the new vehicle market remains high
– LEBOGANG GAOAKETSE, HEAD OF MARKETING AND COMMUNICATION AT WESBANK VEHICLE AND ASSET FINANCE

The passenger car segment sold 22,911 units during April, 86.2% of which were retailed through dealers to consumers.

Dealer channel sales were relatively robust and are 27.3% ahead year-to-date. The segment was 13.9% down on March sales.

Light Commercial Vehicles (LCVs) by comparison were 24.3% lower than March, taking a harder knock – although year-to-date sales in the segment are 46.9% higher. Dealer channels sales in the segment accounted for 90% of sales.

“Demand in the new vehicle market remains high as judged by WesBank’s daily application rate,” says Gaoaketse. “While WesBank continues to finance more than twice the number of pre-owned vehicles than new, there is a marginal shift towards new car sales as experienced during April.”

Affordability remains a key purchase consideration, driving consumers towards the pre-owned market.

“Attractive incentives in the new vehicle market, however, as well as low-interest rates, are providing some stimulus to the new vehicle market,” says Gaoaketse.

A look at vehicle sales figures one year since lockdown began.

vuyi on April 6, 2021

As the country observed the first-year anniversary since lockdown commenced, new vehicle sales provided reason for the industry to celebrate.

Twelve months ago, the country reeled to news of the pending lockdown as showrooms prepared to close their doors, consumers headed home, and vehicles were only let out for essential services. In March 2020, the new vehicle market plummeted 29.7% compared to March 2019 to record just 33,545 sales. The grip on the South African motor industry had tightened quickly.

One year later, the resilient industry is fighting a hard recovery. But March 2021 sales put one of their best feet forward.

With interest rates remaining stable at their low levels, a constantly – albeit slowly – improving supply of imported vehicles, and a slightly healthier economy operating within eased levels of restrictions, we expect the market to continue recovering well.
– Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance

“Reassuringly, March sales show a 18.4% increase over February this year, a number more indicative of the real strength of the market,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance. “With many of the brands indicating difficulty securing sufficient stock to meet demand, the new vehicle market seems to be well on its way to recovery.”

Passenger car sales were up 23.4% to 27,330 units year-on-year and 13.2% up on February 2021. With some renewed activity in the rental market, the consumer demand was noticeable with dealer sales in the segment up 24.2%.

Light Commercial Vehicles (LCVs) delivered a staggering 52.4% improvement over March last year to sell 14,375 units. This performance means the LCV segment is up 13.2% year-to-date and hopefully represents a surge in business confidence. The majority of activity in the segment remained on the showroom floor with dealers selling 61.1% more bakkies than they did a year ago.

“With interest rates remaining stable at their low levels, a constantly – albeit slowly – improving supply of imported vehicles, and a slightly healthier economy operating within eased levels of restrictions, we expect the market to continue recovering well,” says Gaoaketse. “While we have seen a significant increase in the average deal size financed by WesBank, we don’t expect new vehicle prices to increase dramatically. This will also provide added stimulus to the market and is a positive sign of consumer sentiment and ability to participate in the new vehicle market.”

The strong March performance made an encouraging impact on year-to-date sales. First quarter sales are just 0.9% down on the same period last year with 116,225 sales recorded during the first three months.

Demystifying vehicle finance lingo: Part 1

vuyi on March 11, 2021

It’s all very well to find a car that you both like and can afford, but you also need to understand all the financial jargon that comes with making the purchase.

There is no shame in admitting you don’t know what a balloon payment is, or the difference between fixed and linked interest rates. While all these terms can be intimidating the first-time round, doing research will ensure you get the best financial deal on your set of wheels.

Before you get to the part where you drive off in your car, let’s get back to understanding the payment deal to make sure you sign up for the best financial plan that suits your needs and more importantly, your pocket.

“Car ownership is more than the initial price tag. A customer will need to consider monthly repayments, plus the added costs of fuel, comprehensive insurance cover and general maintenance and service expenses when buying a car.”

– Kutlwano Mogatusi, WesBank Motor’s Communication Specialist.

Here’s the first of our 2-part guide to understanding vehicle finance jargon which will help you make the right choices:

1. Interest rate: The interest rate affects the amount a bank charges you for borrowing money and the amount you need to pay back is determined by the interest rate on your finance agreement. The current low interest rate is good news for anyone repaying a vehicle finance loan.

2. Fixed or linked interest rate: You can choose between a fixed or linked (variable) interest rate on your vehicle finance agreement. As it says, a fixed interest rate remains the same, as does your monthly instalment. A linked rate fluctuates with the prime interest rate set by the South African Reserve Bank – if the rate increases, so will your payment but if the rate goes down, you will benefit from a lower monthly payment.

3. Deposit: This is a cash amount you pay upfront before the vehicle finance agreement starts. This amount is deducted from the price tag, so it makes sense that the bigger the deposit you can pay, the less you will owe on the car in the long run.

4. Finance period: The finance period is the length of time you agree to in the contract to pay off the car. It affects your monthly instalment and interest amount. A longer period may mean a lower instalment but the interest adds up so you could end up paying more. A shorter payment period might incur a slightly higher monthly payment but lessens the interest paid out in the long term, which is a good thing.

5. Balloon payment: A balloon payment is a lump sum amount that still needs to be paid at the end of the vehicle finance contract. So, on the upside, while it reduces your monthly instalment for the contract period, you will need to settle it in full at the end, so be cautious of this payment option. Because you may end up paying more interest in total in the long term, you need to make sure you have budgeted and saved enough to pay off the outstanding balloon payment. This amount however can now be refinanced, which will extend your term to pay back the car loan.

“Now that you understand the jargon and consider yourself to be vehicle finance savvy, all that’s left is to check the vehicle finance agreement, including the small print, and sign on the dotted line – but, only once you’re satisfied with all the terms and conditions. Then, you are ready to safely take to the open road in your very own car,” says Mogatusi.

New Land Rover Defender named best Premium SUV at #CarsAwards

vuyi on February 18, 2021

The new Land Rover Defender 110 D240 HSE drove away winner of the Premium SUV category at the annual Cars.co.za Consumer Awards – powered by WesBank this week.

The Premium SUV category is open to all large SUVs on sale from priced between R1,000,000 and R1,500,000 which offer all-wheel drive as standard equipment.

The new Range Rover Evoque P250 R-Dynamic SE also proudly took second place in the Executive SUV category open to all SUVs priced between R800,000 and R1,000,000.

Finalists in the definitive automotive awards programme are selected from the entire passenger vehicle market. The scoring process is based 50 percent on a panel comprising 14 guest judges, together with the Cars.co.za editorial team. The remaining 50 percent is determined by rankings achieved in an Ownership Satisfaction Survey conducted in partnership with data specialists Lightstone Consumer.

Where winners of the individual vehicle categories are decided by a combination of judging panel scores and consumer data, the prestigious Brand of the Year award is determined entirely by market data and findings of the Ownership Satisfaction Survey which includes respective sales and after-sales service ratings from thousands of South African vehicle owners.

Here Land Rover/Range Rover climbed 12 positions from its results in the 2019/20 #CarsAwards to achieve a respectable second runner-up podium finish.

Vehicle Finance 101: What You Ought To Know About INSTALMENT FINANCE

vuyi on November 24, 2020

In the excitement of buying a new car, some people make the mistake of not fully understanding the best finance options available to them. In the second of our 3-part Vehicle Finance series, we talk about Instalment Finance.

The majority of South African drivers cannot afford to buy their cars outright and rely on vehicle finance from banks. There are a few different vehicle finance options available to customers, namely:

Balloon Payments
Installment Finance
Guaranteed Future Value

But how do you know which one is best for you? To help you make better-informed decisions, here is what you ought to know about Instalment Finance.

Instalment finance agreements come with fewer restrictions such as mileage and the condition of the vehicle, but monthly repayments will naturally be a bit more.
– GHANA MSIBI, CEO OF WESBANK MOTOR DIVISION

Instalment sales are by far the most common and simplest of the vehicle finance options.

Monthly repayments are calculated on the purchase price of a car, and payment terms can be structured into time frames of between one and six years. The longer the term, the lower the monthly instalment will be, but it’s important to remember that interest will increase proportionally to the length of the contract. As such, the total amount repaid to the bank will be more for a longer loan period than a shorter one.

“Instalment finance agreements come with fewer restrictions such as mileage and the condition of the vehicle, but monthly repayments will naturally be a bit more. The extra monthly cost does, however, pay off in the long run because once the payment term is concluded, the customer owns the car outright,” explains Msibi.

One of the most important pieces of advice WesBank has for customers, regardless of which of the three finance options is chosen, is to begin with a healthy deposit. Any money put down upfront will automatically mean lower monthly instalments and less interest, combined with a lower outstanding balance at the end of the contract in the case of balloon payments or GFV deals.

“Any dealership that offers finance through WesBank has a registered Finance and Insurance (F&I*) consultant to guide buyers and explain the different finance options,” concludes Msibi. “These experts can propose which option is most suitable for each respective customer and will offer financially sound advice on what you can and cannot afford,” says Msibi.

* All F&I consultants are regulated by the Financial Advisory and Intermediary Services (FAIS) Act and the National Credit Act (NCA).

Vehicle Finance 101: What You Ought To Know About BALLOON PAYMENTS

vuyi on November 23, 2020

In the excitement of buying a new car, some people make the mistake of not fully understanding the best finance options available to them. In the first of our 3-part Vehicle Finance series, we talk about Balloon Payments.

Balloon Payments
Installment Finance
Guaranteed Future Value

But how do you know which one is best for you? To help you make better-informed decisions, here is what you ought to know about Balloon Payments.

For those in the car market, right now is actually a great time to buy thanks to the current low-interest rates combined with some tasty offers from car dealers around the country.
– Ghana Msibi, CEO of WesBank Motor Division

Balloon payments

This is a convenient solution designed to assist the buyer with cash flow at the start of a finance agreement.

A portion of the purchase price is set aside in order to lower monthly repayments, but it’s important to remember this deferred amount will still be owed to the bank at the end of the contract term.

Balloon payments require discipline to be used effectively, and customers opting for this arrangement should make sure they’re saving enough cash every month to settle the debt once the instalment period is complete.

While the benefits that come with keeping monthly costs down may be extremely appetizing, it is important not to view a balloon deal as a way to get into a car you simply cannot afford.
– GHANA MSIBI, CEO OF WESBANK MOTOR DIVISION

Think of a balloon payment as a deposit, but one that’s put down at the end of the contract term instead of at the beginning. Depending on the size of the balloon, the money saved on the monthly payments should more than cover the cost of interest for a loan to refinance the lump sum of debt at the end of the term.

In other words, saving the money yourself while driving the financed vehicle could be cheaper than it would be to apply for another bank loan to pay off the outstanding debt owing on the car.

“While the benefits that come with keeping monthly costs down may be extremely appetizing, it is important not to view a balloon deal as a way to get into a car you simply cannot afford,” says Msibi.

“A looming lump sum after years of driving a vehicle is easy to ignore and forget, but settling that debt is ultimately the responsibility of the buyer. That said, a balloon payment has some great advantages if used properly.

* All F&I consultants are regulated by the Financial Advisory and Intermediary Services (FAIS) Act and the National Credit Act (NCA).

New Car Sales Establishing New Roots

vuyi on October 7, 2020

New vehicle sales continued to establish firmer ground, recording the third consecutive month of growth since lockdown.

The slow resurgence of sales comes off the back of reduced lockdown level regulations as the country entered Level One during September. Year-on-year results for the past three months have shifted from 29,6% in July, through 26,3% in August, to a market down 23,9% in September. According to the National Association of Automobile Manufacturers of South Africa (Naamsa), 37,403 new vehicles were sold during September, up 3,888 units from August.

“Some momentum is gathering as economic stimuli slowly return,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance. “The month-on-month increase in sales is more reassuring in real terms than the gradual improvement in year-on-year performance over the past three months. There are clear signs of recovery, although there remains a long road to full recovery.”

In contrast to actual sales activity, WesBank Vehicle and Asset Finance data indicates an increase in applications compared to September last year

As much as those nearly 4,000 additional units of volume will have been welcomed by dealers and brands, the harsh reality remains a market 11,737 units less than September last year. “Relatively, September sales down 23,9% compare favourably to the year-to-date performance, which is now 33,4% down from the same period last year,” says Gaoaketse. “That’s a very sobering 132,878 units less so far this year than pre Covid-19 levels of market activity.”

In contrast to actual sales activity, WesBank Vehicle and Asset Finance data indicates an increase in applications compared to September last year. “Whether it remains pent-up demand or merely more consumer and business optimism in the market, there are reassuring levels of demand,” says Gaoaketse. “While this isn’t currently translating into sales, it bodes well for the continued recovery of the market as affordability slowly improves.”

WesBank Vehicle and Asset Finance has also experienced an increase in its average deal duration, indicating the knock-on effects of lockdown delaying purchase decisions, as well as the continued stress on household incomes that is translating into current market performance.

Passenger car sales took the largest knock in September and accounted for the majority of the volume decrease year-on-year

Passenger car sales took the largest knock in September and accounted for the majority of the volume decrease year-on-year. At 31,2% down compared to September last year, the 22,798 sales meant 10,322 fewer passenger cars were sold in September than a year ago.

By comparison, Light Commercial Vehicle (LCV) sales were relatively buoyant at 12,267 units, down 8,9% or 1,202 sales compared to September 2019. Both segments did, however, sell more units than in August.

“Seemingly the long road to recovery for the automotive industry has begun,” says Gaoaketse. “Stimulating conditions to accelerate the return of new vehicle sales is welcome, including aggressive marketing campaigns, but – in particular – the low interest rate environment. Just how long these conditions will remain, will play an important part in how quickly the industry recovers.”

This could be the right time to buy your first car

vuyi on September 30, 2020

Any vehicle purchase should be guided by doing your homework thoroughly to reach an informed decision.
– Lebogang Gaoaketse, Head of Marketing and Communication at WesBank

If you are scanning the latest car models online, and dreaming of owning your first set of wheels, right now could be a good time to buy that car. For many young professionals who have recently entered the job market, buying a car is probably one of the first big ticket items on the road to independence and adulthood.

While the responsibility of buying and maintaining a car may be a daunting prospect, the current favourable low interest rates and some great deals on offer in both the new and used car markets, are both compelling reasons to purchase a car.

“Any vehicle purchase should be guided by doing your homework thoroughly to reach an informed decision. Whilst buying a new car is an exciting experience, it is also one of the most significant decisions to consider in your monthly budget,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank.

“Following the extended lockdown period, there are now some very enticing offers being made to encourage the purchase of new and used vehicles. In addition, potential car owners have access to some of the most affordable debt, thanks to the exceptionally low interest rates. If a vehicle purchase is on your radar, right now is an opportune time to consider it.”

For us, it is important that graduates and young professionals fully understand the car buying process
– LEBOGANG GAOAKETSE, HEAD OF MARKETING AND COMMUNICATION AT WESBANK

Whatever your dream car, when it comes to the actual purchase – you need to remain grounded and realistic. Factors such as affordability and what finance deal will get approved, the lack of a credit history for many young professionals can be a stumbling block on the path to vehicle finance. To overcome this, WesBank has put a special vehicle finance deal in place, where a credit history is not essential. The application process to check affordability and get approval for a vehicle finance deal can all be done online, and is quick, easy and instantaneous.

“For us, it is important that graduates and young professionals fully understand the car buying process. When they apply for finance with WesBank, they are assessed on a different set of criteria to check affordability. This means that the finance packages we offer are exclusively structured for them to ensure the delight in owning a car is not hampered by the responsibility of it becoming a financial burden. As a responsible lender, we will only approve a finance deal that is affordable,” says Gaoaketse.

Owning a vehicle is also much more than the monthly instalment. Remember that extra costs for consideration include comprehensive vehicle insurance, fuel, maintenance and repairs, which can all impact monthly budgets and cash flow. Buying a car is also a long-term commitment, so it’s important to understand the economics involved over an extended period of time.

It is our responsibility to ensure that young professionals are equipped and knowledgeable when it comes to budgeting for their first long-term commitment purchase
– LEBOGANG GAOAKETSE, HEAD OF MARKETING AND COMMUNICATION AT WESBANK

The following tips from WesBank will help you become financially savvy when navigating the decision-making and car buying process:

Track your income and expenses – draw up a budget of all your monthly expenses and make sure you have more than you spend to determine exactly how much you can afford to spend on a car.
Spend less than you make every month – this sounds obvious, but if you don’t track your spending, you can overspend on your budget resulting in debt that may be difficult to overcome.
Spend less on wants than needs – peer pressure can result in going out and socialising or buying the latest fashion items, when that money could be better spent saving towards bigger purchases such as a car, a financial investment or even owning a house. Be careful not to make spontaneous spending and expensive purchases a habit – once in a while is fine, budget permitting of course!
Start saving early and regularly – you are never too young to open a savings account. Being disciplined about saving is an important lifelong financial lesson that should become a habit.

“It is our responsibility to ensure that young professionals are equipped and knowledgeable when it comes to budgeting for their first long-term commitment purchase. In our experience, the best purchasing decisions are always made when you have all the facts at your fingertips, and you are well informed. Now that you have the lowdown on what is required and you are ready to make the financial commitment, the best time to consider buying that car is right now,” says Gaoaketse.

Nissan South Africa partners with WesBank for vehicle finance

vuyi on August 19, 2020

…we are excited for this collaboration to respond to our customer’s needs using digital innovative solutions.
– Nancy Moodley, Nissan South Africa’s Head of Customer Experience and Digital.

Johannesburg, South Africa (18 August, 2020) – Nissan South Africa has become the first vehicle manufacturer to launch a new intuitive digital application technology to assist customers when applying for vehicle finance online.

The Nissan pre-finance tool is powered by WesBank and allows customers to check their affordability by completing a pre-approval form before applying for finance. This tool is integrated into the bank’s engine.

Nissan is the first vehicle manufacturer in South Africa to offer pre-financial approval within their website which is linked to the credit bureau. The intelligence or algorithms built into the tool provides immediate confirmation of approval or declined status while allowing the customer the flexibility to structure their deal using balloon payments or deposits.

The process is seamless, convenient and quick. Removing the hassle of the full vehicle application process which is usually tedious and time consuming. Once the customer receives an approval, a reference number is issue with the full downloadable pdf. deal structure for the customer to utilize at their dealer once they are ready to purchase. Nissan continues to explore innovate solutions to ensure that the vehicle purchase process is seamless and simplified for their customers.

“As the first OEM to partner with WesBank, we are excited for this collaboration to respond to our customer’s needs using digital innovative solutions. The integration of WesBank’s digital application technology into our website will enhance Nissan and Nissan Finance’s offering to prospective Nissan vehicle owners,” says Nancy Moodley, Nissan South Africa’s Head of Customer Experience and Digital.

When developing this platform, our goal was to make the online journey of applying for vehicle finance a stress-free conversation
– Dane Reddy, WesBank’s Head of Digital

As the coronavirus creates significant challenges for the automotive industry, it has become more important than ever to use technology to deliver the full bouquet of virtual customer solutions including e-commerce. This impactful tool launched by WesBank and Nissan allows customers get car finance approval in minutes from the comfort of their mobile devices. The laborious and complicated process of applying for vehicle finance has now been simplified offering potential & current Nissan customers a tailor-made deal suited to their budget.

“When developing this platform, our goal was to make the online journey of applying for vehicle finance a stress-free conversation, not an interrogation, for our customers – simple as that. We ask the applicants to tell us a bit about themselves and the car they are interested in purchasing and in under 10 minutes, we can tell them whether they are approved for the requested vehicle financing or not. If not, we can offer them alternative options to fit their budget,” says Dane Reddy, WesBank’s Head of Digital.

Nissan recently introduced a host of digital services as part of its Shop@Home platform to make it easier for customers to interact with their products particularly during these times when we are observing best practice in managing COVID-19.