Instalment agreement

An instalment agreement offers you a financial facility to have the vehicle of your choice purchased by the bank, which then sells the vehicle to you over a negotiated period at an agreed interest rate.

Instalment agreement
Deposit Subject to credit risk; negotiable based on age of vehicle.
Period Minimum 12 months; maximum 96 months.
Balloon payment Can be structured into your agreement
Tax Should your vehicle be for business use, please refer to the South African Revenue Service (SARS) for details on travel allowances, tax rebates and tax benefits.
Ownership When the vehicle is paid up, you will receive documentation from MFC that needs to be taken to the licensing authority to complete the change of ownership process.
Interest rate Market-related rates will apply. Choose between a fixed or a linked-interest rate.
Settlement An early-settlement option is available. There is no penalty on small and intermediate agreements.

Balloon payment option

The balloon payment option offers the benefit of reduced monthly repayments, with a lump sum repayment (referred to as the balloon payment) at the end of the agreement period.

The maximum balloon facility is 35% and is subject to the year, make and model of the vehicle and the finance period. Terms and conditions will apply.

At the end of the agreement period, you have the following options:

  • You can apply to refinance the balloon payment amount for a further period. Terms and conditions will apply.
  • You can sell the vehicle.
  • You can pay the full balloon payment amount and take ownership of the vehicle.

Rate payment options

MFC offers you the flexibility to select from one of two rate options:

Linked-rate option

The linked-rate option provides you with the potential benefits of fluctuating interest rates.  In the event that the interest rate increases during the agreement period, your interest rate and therefore your repayments will increase accordingly. The reverse applies if the interest rate decreases during the agreement period: then you will benefit from lower corresponding repayments.

Fixed-rate option

The fixed-rate option provides you with peace of mind in terms of fluctuating interest rates. In the event that the interest rate increases during the agreement period, your repayments will not be affected and your interest rate will remain the same.

Apply Online

Download the physical application forms by clicking on the following links for the Application Form (116 kB) and the Business Application Form (499 kB)