MFC or the Motor Finance Corporation has had outstanding success since it was bought by Nedbank a few years ago. This has been great for Nedbank as well, whose motor vehicle finance arm before it bought MFC, consisted largely of its everyday bank account holders. With MFC in the fold, Nedbank is now the second largest motor finance services provider in South Africa.

To qualify for a loan at MFC, there are a few things you need to tidy up. It’s just simple things that will help guarantee you get a loan from MFC to finance your car. First thing’s first, know how much you can afford. MFC, like any other bank would be taking a risk on you by granting you vehicle finance if you would not be able to pay back the principal, and with interest. So get an idea of how much the car will be, the amount of car insurance premiums you will end up buying, maintenance of the vehicle like taking it to service, and of course fuel costs. These calculations will guarantee you know what you can afford, and the amount of loan MFC should grant you.

The second step is to find a car. Buying a new car is great, but as soon as you get the keys to your baby and drive out of the showroom, you’ve lost a good chunk of the value you just got it for, and depreciation will set in immediately. When, however, you buy a used car, that loss has already been taken by the first owner of the vehicle, and therefore the way in which the car’s value goes down over time will be less drastic. Simply put, if you buy a second-hand car, the Motor Finance Corp. is at a better position than it would otherwise be, because they are taking less risk on you because you apply for a cheaper loan. The last step is the actual application for a loan for the car. It’s a simple and quick process, but the most important decision that you will have to make, given that you have committed yourself to a regular monthly payment that has to be done on time.

Being part of a big bank, MFC is able to negotiate with many of the country’s car dealers. This, in turns makes the Motor Finance Corporation’s application forms available at as many dealers as possible. That way, buying a car, and applying for finance don’t have to be two separate paperwork.

South Africa wants to reach a production of 1.2 million cars a year by 2020. Unless we buy our cars in cash, then we really, really need to use the services and products of MFC.