The second-hand car market has been effectively neutered by SI 89 of 2021 which banned the importation of second-hand vehicles over 10-years old. This is meant that the ordinary Zimbabwean who dreamt of getting an affordable ex-Jap would now have to contend with the scalpers at the car dealerships. One of the things I banged on about when the government announced the ban was the lack of car loans or specific vehicle financing.
There are a number of products on the market, including short term loans but nothing from what I could see browsing the interwebs was specifically for cars (also if you know of any hit me up in the comments). However, and in a good turn of events, Nedbank Zimbabwe relaunched its Vehicle Asset Financing facility.
The company yesterday, put out a tweet outlining the terms and conditions for vehicle loan financing or car loans.
We are excited to advise you, our valued clients of the relaunch of our Vehicle Asset Finance (VAF).— Nedbank Zimbabwe (@NedbankZimbabwe) September 21, 2021
For more information contact us at firstname.lastname@example.org #Nedbank#VAF
For terms & conditions, click https://t.co/Fxneds2nwd pic.twitter.com/ygRSUhYSH1
Nedbank Zimbabwe car loan terms
I guess the obvious thing is that you have to be a Nedbank account holder to be eligible for its vehicle financing facility. You will, as I am sure you’ve already guessed, have to have a salary that comes into your account as well as:
- Completing a Nedbank Vehicle Finance application form.
- Assessment of stability of employer is carried by the Bank.
- Satisfactory account conduct by applicant.
- Copy of current payslips and financial statement in case of a Corporate applicant.
- National identity or incorporation documents in case of a Corporate.
- Letter from employer (Human Resources Manager/Head) supporting the request and confirming that one is permanently employed.
- Proof of residence.
- Copy of Driver’s license.
- Credit checks – KYC, FCB, CRB and World checks.
- Pro-forma invoice from an Authorised Dealer.
The vehicle can be new or pre-owned however, for pre-owned vehicles Nedbank says only Nissan, Toyota, Ford, Chevrolet, Isuzu, Mazda Landrover and Mercedes Benz models are eligible for a car loan. In addition, Nedbank also says in its brochure that it does not finance “grey” imports.
Below are the vehicle loan terms for individuals and corporates:
Personal car loans terms
|Upfront Deposit requirement||20%||Minimum 20% for <5years|
|Tenure maximum||36 – 60 months||36 months|
|Once-Off Admin fees||1%||1%|
|Arrangement fees (once-off)||2%||2%|
Corporate car loan terms
|NEW VEHICLES PURCHASED THROUGH AUTHORISED CAR DEALERS||PRE-OWNED VEHICLES WHICH ARE BELOW 5 YEARS, PURCHASED THROUGH AUTHORISED CAR DEALERS.|
|Maximum Amount||Pegged in line with turnover||Pegged in line with turnover|
|Repayment period||Currently up to 18 months||Currently up to 18 months|
|Interest||MLR 40% p.a + margin||MLR 40% p.a + margin|
|Arrangement Fee||Up to 5% Flat upfront.||Up to 5% Flat upfront.|
|Administration Fee||Up to 5%||Up to 5%|
|Authorised Dealer’s & AA reports||Not required||Required|
|CVR, Interpol & Vehicle Theft Squad clearance||Not required||Required|
|Full Comprehensive Insurance||Required||Required|
You can download Nedbank Zimbabwe’s vehicle financing brochure with the link below: