Capitec entered vehicle finance through its acquisition of Mercantile Bank and offers vehicle finance under the Capitec brand. The agreement is an instalment sale: the bank finances the vehicle, you repay over an agreed term, and the vehicle stands as security until the debt is settled.
Because the vehicle secures the loan, rates are generally lower than on an unsecured personal loan — but the bank has a direct interest in the condition, age and value of the car being financed.
Eligibility Requirements at a Glance
The standard criteria for regulated vehicle finance in South Africa apply.
- Be 18 years or older with full contractual capacity
- Hold a valid South African ID document or smart card
- Hold a valid, unendorsed South African driving licence
- Have a regular, verifiable income paid into a bank account in your own name
- Not be under debt review, sequestration or administration
- Have a verifiable residential address
Income and Affordability Requirements
The instalment must be affordable after your existing commitments, which is what limits the price of the vehicle you can finance.
The Act requires the credit provider to complete an affordability assessment before granting credit: verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses set out in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Deposit and term are the two levers you control. A deposit reduces the financed amount and the instalment directly. A longer term lowers the instalment but increases total interest and lengthens the period during which you owe more than the car is worth.
A balloon or residual payment reduces the monthly figure but leaves a lump sum due at the end of the term. Plan for how that will be settled before agreeing to one.
Credit and Financial Requirements
Your credit bureau record sets the approval decision and the personalised rate.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). You can verify registration free of charge at ncr.org.za.
The vehicle itself is assessed too. Lenders limit the age and mileage of used vehicles they will finance and the term they will allow against them, because the security must retain value over the agreement.
Comprehensive insurance is compulsory for the full term and must be in place before the vehicle is released. You may choose your own insurer. Credit life cover, which settles the balance on death, disability or retrenchment, is normally required as well.
Documents and Verification Required
Have these ready before applying.
- South African ID document or smart card
- Valid driving licence
- Latest three months’ bank statements showing income
- Latest payslip, or three months’ payslips where income varies
- Proof of residence not older than three months
- For self-employed applicants: six months’ statements and financial statements
- The vehicle’s details, including make, model, year, mileage and the dealer’s invoice or offer to purchase
- An insurance quote or existing policy details
How to Apply and Improve Approval Readiness
Apply through the Capitec app, on capitecbank.co.za, at a branch, or through a dealership’s finance desk that submits to Capitec among other lenders.
- Get pre-approval before you shop so you know your realistic price range
- Save a deposit — it improves both approval odds and the rate
- Compare total cost of credit across lenders, not monthly instalments
- Avoid maximum-term, balloon-payment structures unless you have a clear plan for the residual
- Check your credit report and dispute errors before applying
- Budget for licensing, insurance, tyres and servicing on top of the instalment
Frequently Asked Questions
Can I finance a private sale?
Some lenders finance private, dealer-to-dealer or bank-repossessed vehicles under specific conditions, usually including a valuation and roadworthy certificate. Confirm with Capitec whether private sales are financed and what is required.
Is comprehensive insurance really compulsory?
Yes. The vehicle is the bank’s security and must be insured for the full term. You may use any insurer, but proof of cover is needed before delivery.
How old a car can I finance?
Lenders cap the age and mileage of financed used vehicles, and shorten the maximum term as the vehicle gets older. Confirm the current limits with the bank.
Can I settle early?
Yes. Under the National Credit Act you may settle the agreement early. Request a settlement quotation, which shows the balance and any permitted early termination charge.
Vehicle age limits, maximum terms, deposit requirements and rates are set by the bank and change over time. Confirm the current criteria with Capitec, and read the pre-agreement quotation in full before signing.