How long does vehicle finance approval take?

If you need a car, but you can’t afford it with your savings, you may have to take out a loan to finance it. With so much else to consider, it may help to know how long it takes to have a loan approved. 

We find out what kind of timeline you should expect, and we consider what else you should prepare while you await loan approval. 

Tip: Vehicle finance usually requires car insurance – get a competitive quote.

How long does car finance approval take in South Africa?

Allesha Chetty, finance and insurance manager for Group 1 Renault, says that it can take as little as an hour to have your vehicle finance pre-approved.  

“However, final approval can take anything between three hours and three days. This depends on whether you provide all the correct documents that your vehicle finance provider requires,” says Chetty.

What documents do you need for vehicle finance?  

• A copy of your South African identity card or document
• A copy of the front and back of your South African driving licence
• Proof of your income that’s not older than three months
• Three months’ payslips if you earn a salary, and, if you earn commission, you will additionally need stamped copies of your latest three months’ bank statements. Internet bank statements will not be accepted.
• Proof of residence, such as a utility bill, that’s not older than three months

Nunben Dixon, head of Gumtree Auto, says that if you don’t have the correct documents ready, finance approval can take a lot longer, such as a few weeks. You should therefore make sure you’re prepared for your full application before you reach out to lenders. 

Consider this while you await vehicle finance approval 

Sumarie Greybe, co-founder of Naked Insurance, notes that, while awaiting approval, you should turn your attention to other car-ownership requirements.

“It’s worth remembering that getting finance is just one of the steps involved in buying a car,” says Greybe.

Tips for buying a new car:

• Be sure that you have chosen the best vehicle for your needs. Your research should be completed before finance application, but it’s not too late to change your mind if needed.
• Finalise the paperwork, such as your vehicle registration.
• Purchase insurance for your vehicle. Note that your finance provider won’t allow you to drive away with a car until it’s been insured. Conveniently, some digital platforms allow you to buy insurance for your new wheels in less than 90 seconds.

Sort out your car insurance right away – get a competitive quote.