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What are the odds for a second car loan?

Jan 26 2016 07:18

A Fin24 user wants to know if her current car financer will grant her a loan despite a bad credit record.

She writes:

I want to know whether it is possible to get pre-approved finance from the bank (MFC), which is currently financing my vehicle, as I want to buy a new car after I have finished paying off the car that I am driving now. Even though my debts are not in a good state, I have a good credit record with them since I am paying R3 500 for my car instead of R2 800.

What I'm trying to find out is that after I have paid up my car next year, will MFC still be able to finance me again if I want to buy another car even though my credit record is not in good condition?

Martin Wiid of MFC responds:

In line with the requirements of the National Credit Act, MFC does not offer pre-approved finance. We will assess the client's financial position and ability to repay the vehicle loan at time of application.

The credit assessment will include among other things review of the applicant's conduct of all debt obligations as listed on the credit bureau.

The client's relationship with MFC will form part of a comprehensive review of the credit application. 

*Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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vehicle finance  |  money  |  money clinic
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