Cars on installments for young people in South Africa are now more accessible than ever, with flexible finance plans from banks, dealerships, and fintech lenders.
Cars on Installments for Young People in South Africa: 2025 Finance Options, Costs & Tips
Getting your first car in South Africa can feel like a distant dream when you’re starting out. But thanks to growing competition among lenders and the rise of youth-friendly credit models, cars on installments for young people are becoming a practical and popular way to get on the road.
From bank car loans and dealership finance to tailored student packages and rent-to-own models, this guide breaks down the latest installment options in South Africa for 2025 — including eligibility, real costs, and smart ways to qualify.
1. Can Young People Buy Cars on Installments in South Africa?
Yes, and it’s more common than ever. Installment-based car purchases — often called vehicle finance — are the most used method for buying a car in the country.
Young people aged 18–30 can now access:
- Traditional vehicle finance from banks
- In-house dealership financing
- Rent-to-own agreements
- Peer-to-peer vehicle loans
- Microloans and alternative fintech products
The key is matching the right finance option with your income, credit history, and lifestyle needs.
2. Traditional Bank Vehicle Finance Options (2025)
Major banks in South Africa offer vehicle finance with flexible terms, especially for young professionals with steady income.
a) WesBank Vehicle Finance
- Offers up to 100% financing
- Minimum income: R7,500/month
- Loan terms: 12–72 months
- Interest rate: From 10.5% (depends on credit profile)
- Cars must be under 10 years old
b) Absa Vehicle and Asset Finance (VAF)
- Tailored packages for graduates and young professionals
- Option for balloon payment to lower monthly instalments
- Online pre-approval tool
- Payment holiday options available
c) Standard Bank – Car Finance for First-Time Buyers
- Structured instalment deals
- No deposit required for qualifying applicants
- Free credit score check through the app
- Co-signer allowed for low-income earners
3. Dealership Installment Finance – Flexible & Fast
Most dealerships in South Africa partner with finance houses or banks to offer in-house installment plans.
Popular dealerships with youth-friendly installment plans:
- Auto Pedigree – quality used cars, flexible deposit plans
- Motus Select – online application, minimum paperwork
- McCarthy Toyota / VW MasterCars – certified used vehicles with up to 72-month finance options
Look for:
- No deposit or low deposit offers
- Bundled extras like service plans or insurance
- Fixed monthly repayments
4. Fintech and Alternative Youth Financing
a) Planet42 (Rent-to-Buy Model)
- No credit history needed
- Monthly rentals from ~R3,000
- Buy the car after 12–36 months of renting
- Great for freelancers or students with no payslip
b) Mogo Loans
- Microloans for car deposits
- Flexible repayments
- App-based approval process
- Available to individuals earning R5,000+ per month
5. Rent-to-Own Options
Rent-to-own has become a solid path for young people who don’t qualify for bank finance.
Key providers:
- Rent2Buy™ (SSLR Inc.)
- DriveAway Rent to Own
- Planet42
Benefits:
- No deposit required
- Drive while you pay
- Less strict credit checks
- Option to cancel after trial period
Drawbacks:
- Higher monthly payments
- You don’t own the car until the end
- Limited car model choices
6. Example Breakdown: Entry-Level Car on Installments
Thabo, 22, working in Cape Town
- Monthly income: R9,800
- Buys a 2017 Toyota Etios (R130,000)
- Deposit: R10,000
- Term: 60 months
- Monthly instalment: ~R2,750 (at 12.5% interest)
- Extras: Included service plan + one year insurance
Thabo qualifies through WesBank with no guarantor and proves affordability using bank statements and payslips.
7. What Do You Need to Qualify?
| Requirement | Details |
|---|---|
| Age | 18+ |
| ID | South African ID or valid work permit |
| Proof of income | Payslip or bank statements (usually 3 months) |
| Employment status | Employed or self-employed with proof of earnings |
| Credit score | Not always required, but improves rates |
| Deposit | Optional, but improves approval |
| Co-signer | Often accepted for students or part-time workers |
8. Tips for Young Buyers
- Check your credit score via ClearScore or Experian SA
- Always compare total cost, not just monthly payment
- Ask about early settlement fees and balloon payments
- Choose fixed-rate deals to avoid future increases
- Avoid luxury brands — stick to affordable, fuel-efficient cars
9. Additional Support for Young Buyers
While South Africa doesn’t offer national youth car subsidies, some banks and programs do provide support:
- Youth Employment Service (YES): May offer transport assistance through work placements
- Graduate finance plans from banks
- Used vehicle rebates through some dealerships
Also consider asking your employer if they offer mobility support or transport stipends.
10. Subscription Services & Car Sharing – An Alternative Path
For students or part-time workers who don’t want long-term debt:
- FlexClub – Monthly car subscriptions (includes insurance + service)
- Planet42 – Rent-to-buy, switch anytime after trial
- Car-sharing apps like Bolt Drive (in pilot phase)
Conclusion: Young South Africans Can Now Drive on Their Terms
Owning a car used to be a big challenge for young people in South Africa. But in 2025, cars on installments for young people have become more flexible, accessible, and tailored to different income levels and lifestyles.
