Bank carries private deals
Private car deals are complicated and risky.
But a large bank has come up with what could be a solution to problems associated with private deals.
FNB vehicle finance has started transactions on private deals.
Since its introduction about six months ago, FNB private deal finance has taken off very well.
The man behind the idea, Andile Makhunga, head of FNB vehicle finance, says the market has been very receptive.
Speaking to Sowetan, Makhunga says he is excited about this. He says his company realised the need to finance private deals.
Though the private deal concept is not new, customers were subjected to conditions such as having an account with the bank.
Makhunga says his company took steps to ensure that both parties were safe.
The bank accepts cars that are eight years old and less with a service history.
But Makhunga points out that the service history is not a strict measure since the bank had inspectors to check the car's condition.
The bank has set up 35 inspection centres countrywide, and the seller pays R370 for the service.
Asked how long it takes to get finance approval Makhunga says the result could be immediate at the branch.
"We have trained staff at the branches who can give you an indication of your application," Makhunga says.
The bank, Makhunga says, does not finance stolen vehicles since these are a hassle.
Customers looking to enter into a private deal can walk into any FNB branch with all the necessary documents.
This also applies to non-South African citizens with valid documents and work permits.
He says anyone who earns R60000 a year qualifies.
"A private deal is the way to go," says Makhunga, who adds that the bank was the first to offer this service to the public.
"We don't take any commission," Makhunga says, adding that this is a cheaper option than going through a dealer.