The prime rate, also known as the prime lending rate or prime interest rate, is the benchmark interest rate that banks use to set the interest they charge on vehicle finance and other loans to creditworthy customers. 

A balloon payment is a type of car financing where you pay off a portion of the car’s cost over a set period (e.g., 5 years), with a larger, final payment (the “balloon”) due at the end of the term. 

it is common to be charged the Prime Lending Rate (plus or minus additional interest) when applying for vehicle finance.

Changes in the Prime Lending Rate, in that regard, will affect your loan, your monthly repayment amount, and the total amount repayable on your loan. When you accept a loan from a commercial institution, it is important to evaluate the current Prime Lending Rate and what you could eventually be charged, should the rate itself change.

The average interest rate is currently prime plus 2%, however your personal interest rate would be influenced by many factors including (but not limited to) your personal credit scoring, principle debt, whether you are a new or existing client and other factors.

Yes, a vehicle cannot be financed without the purchaser having a valid driver’s licence.  A nominated driver is not acceptable as this constitutes third-party finance, which the banks do not offer. A nominated driver will only be considered for medical reasons and a medical certificate from a specialist will be required in this regard.

To finance a car, you’ll typically need proof of identity, proof of address, income, and insurance, along with bank statements and potentially a credit report

While some banks offer up to 96 months, others may limit terms to 72 months. 

No, a deposit is not always required for car finance; while it can significantly reduce monthly repayments, many finance banks will allow you to finance the entire amount, without paying the deposit – terms and conditions will apply.