Frequently Asked Questions

Finance providers have a legal responsibility to provide access to credit that is both fair and non-discriminatory. This is the main reason why you'll be assessed when you apply for any kind of formal credit (vehicle finance included). This requirement is represented in South African law in the National Credit Act.

As a registered credit provider, there are certain things on which VWFS need to base their decision in order to grant you vehicle finance or not. The two main considerations are your affordability and your creditworthiness.

In terms of formal credit, your affordability is a measure of how much you can reasonably manage as a new credit payment, such as a vehicle repayment. It is closely linked to your discretionary income. 

Your discretionary income is the amount of money you have left over after deductions and necessary expenses. 

Your creditworthiness is how likely you are to pay the money you owe on time, based on your credit history. If your credit history shows that you can't be relied upon to pay back what you owe, then your chances of being approved for new credit are low, no matter how high your affordability is.

A vehicle finance agreement - sometimes referred to as a car loan is a type of formal credit agreement between someone wanting to buy a vehicle (a customer) and a vehicle finance provider (such as Volkswagen Financial Services). These agreements allow customers to buy vehicles by paying them off over time, instead of having to come up with the entire purchase price upfront.

If you need finance for a car (or just want to see what a finance deal for a certain vehicle would look like), you can use our industry-first, easy-to-use QuickApp Tool. https://quickapp.co.za/  We'll ask you a few questions and provide an indication of your affordability. 

It's important to know the basic requirements around vehicle finance eligibility.

It's important to know the basic requirements around vehicle finance eligibility.

Applicant requirements:

To be eligible for Volkswagen Financial Services vehicle finance, you as the applicant must:

·       be over the age of 18;

·       be a South African citizen or foreign national with permanent residency

·       have a valid driving license

·       have an income of at least R7 500 per month

The required documents are:

·       A copy of your valid ID document

·       Proof of residential address (not older than 3 months)

·       3 months bank statements

·       Proof of income (a recent payslip)

Tip: If you are an FNB customer, you may not need to submit all these documents. We will advise you during the assessment process. 

·       Instalment Sale

·       Instalment Sale with Balloon Payment

·       Guaranteed Future Value (GFV) 

Guaranteed Future Value, better known as GFV, is our flexible finance plan designed for you to drive a new vehicle more often. Volkswagen Financial Services guarantees the residual value of the vehicle at the end of the contracted term subject to mileage and condition of the vehicle, and in general subject to compliance with all other aspects as outlined in the GFV addendum & primary contract.

The GFV option guarantees the future value of your vehicle at the end of the term, providing you with three options:

·        Trade In

·        Retain/settle

·        Return

Residual value is the estimated value of your vehicle at the end of the agreement. This impacts all our products as it helps us to determine what your monthly repayment is, as we use the residual value to understand the difference between the price at the start of the agreement and the price at the end. 

A balloon payment is an inflated instalment that is due at the end of your credit agreement. It is important to note that the National Credit Act allows for balloon payments in instalment sales agreements. However, you must exercise caution and be aware of this balloon amount, as you will be responsible for paying this lump sum at the end of your finance term.

A monthly vehicle repayment, otherwise known as an instalment, is the amount you would pay each month if you were to buy a vehicle through a finance agreement. 

The different elements of a deal structure (such as the vehicle price, the payment term, deposit, interest rate and balloon payment) each affect the monthly repayment in different ways.

These are the two main ways you can calculate a monthly repayment (and the associated deal structure), with different levels of accuracy.

You can use our vehicle finance calculator, to get an immediate but indicative idea of how a given purchase price would translate into a monthly repayment.

This calculator will give you a general estimated deal structure based only on the vehicle's price, rather than your individual credit score.

Once your finance deal has been finalised; and your documents and Offer to Purchase (OTP) have been verified; it's time to sign your vehicle finance contract. You can do this through our convenient online contract signing process, iContract.

After your documents are verified, you'll receive an email with two important pieces of information:

·       your vehicle finance account number; and

·       your iContract PIN

You'll then use your ID number, account number and iContract PIN to log in to your iContract. Once logged in, you can read through all your contract information and sign your vehicle finance contract digitally.

And that's it. No pen or paper required.

If you want to settle your account early, the amount you owe is probably not the same as the balance on your statement, so you need to get a settlement quote/letter from Volkswagen Financial Services to find out how much you would be required  to pay.

You can request your settlement letter/quote on self-service via the “manage your account” options, alternatively, you may request your quote by sending an email to service@vwfs.co.za. Please quote your account number/ID number on the request. 

If you pay the whole amount you owe on your vehicle before the end of your finance period, it's called an early settlement. This means that, an account may get settled early if:

·       You trade in your car before you've finished paying it off.

·       The vehicle has been written off or stolen - if your comprehensive insurance covers the outstanding amount.

·       The account holder is insolvent or deceased (and the executor and/or trustee settles the account).

If you want to settle your account early, it's not simply a case of looking at the outstanding contract balance on your statement to find out what you need to pay. You need to ask Volkswagen Financial Services for a settlement quote. Visit us on www.vwfs.co.za/ manage account/ settlement request for a settlement quote. 

Equity is the difference between what your vehicle is worth and how much you have left to pay on your finance agreement. You’re in positive equity when the vehicle’s value is more than what you have left to repay. Therefore, negative equity is when the vehicle’s value is less than what you have left to repay. Negative equity is most common at the beginning of an agreement, but as the vehicle begins to depreciate and you pay off your finance, it’s possible that you will reach positive equity.

When it comes to vehicles financed with Volkswagen Financial Services, comprehensive insurance isn't just a good idea; it’s a contractual requirement.

Tip: Having your vehicle uninsured at any time during your finance agreement is considered a breach of contract.

The insurance company will pay the insured value of the vehicle, which should ideally be used to settle the outstanding amount on your finance agreement. Shortfall cover can cover any difference.

A NaTIS document - otherwise known as a vehicle registration certificate - acts as a title deed to the vehicle, indicating who owns the vehicle. When a vehicle's ownership is transferred, the NaTIS document is re-issued in the new owner's name.

In the case of a financed vehicle, South African law states that the NaTIS document remains with the finance provider for safekeeping until the finance agreement has been concluded. Technically, although you are recorded as the owner of the vehicle, Volkswagen Financial Services remains the titleholder for the duration of the finance agreement (VWFS would hold the original NaTIS document).

Once your finance agreement has been fully settled, you're entitled to be registered as both the owner and the titleholder of your vehicle. When this happens, we'll contact you to initiate a change of ownership process. 

At Volkswagen Financial Services, we provide you with an end-to-end account management online solution. We have ways to make sure you enjoy your vehicle without having to worry about your finance agreement. We give you access to the customer portal where you can manage your account electronically.

There is a whole range of Services You can Manage at your fingertips.

Find all the information you need to get by on a day-to-day basis below:

·       Request documents

·       Update your personal details

·       Travelling to neighbouring countries?

·       Request Changes to your Agreement

·       Making a Partial Payment

·       Requesting a Statement

·       Having Financial Difficulties?

You can manage your account online through the VWFS customer portal, where you can view statements, make payments, and update personal information.

Missing a payment puts your account in arrears, incurs arrear interest, negatively affects your credit score, and puts you in breach of your vehicle finance agreement. Contact the Customer Services Centre immediately to arrange a payment.

Changing your payment due date may be possible, but it depends on your contract terms. Contact the VWFS customer service centre to discuss your options.

Mobility Mart Online Shop is a voucher driven platform that allows Volkswagen Financial Services customers to pay for a selection of vehicle-related products by adding them to their vehicle finance agreement. It makes it easier for you to afford genuine vehicle parts, accessories, and servicing at a reputable dealership.

The following applies to customers with a Volkswagen Financial Services vehicle finance contract, the required affordability and a healthy credit status:

Once we've received your documents, we'll add the cost of your chosen product voucher amount to the amount you still owe on your finance agreement. Your vehicle's monthly instalments will be adjusted accordingly to include your total voucher cost, and you'll end up paying it off over the remainder of your finance agreement.

Unless you're an FNB customer, you'll also need to submit the following documents before you can be approved to add a given product to your finance agreement:

·       Proof of income (a recent payslip)

·       3 months statements for the bank account into which your salary is paid

Mobility Mart Online Shop is a voucher driven shop – Volkswagen Financial Services financed Customers can now purchase vouchers online to redeem towards the following:

·        EasyDrive Vehicle Plans 

·        Genuine Parts

·        Genuine Accessories

·        Servicing and Maintenance

·        General Repairs

Tip: If you have unresolved payments, or if you're at the beginning or end of your finance term, you might not be eligible to use Mobility Mart Online Shop. If you are ineligible, you won't see Mobility Mart Online Shop as an option when you log in to your profile.

What you can spend in the Mobility Mart Online Shop is limited by your affordability and credit status. This is because buying through Mobility Mart Online Shop happens by way of a credit purchase in a voucher form that gets added to your vehicle finance agreement, thereby increasing your monthly repayment amount.

Tip: Any products you choose to redeem your voucher towards should be installed/fitted to the associated vehicle at the redeeming dealership. Please refer to the terms and conditions on our webpage for more information in relation to the voucher.