The used car market was effectively neutralized by SI 89 of 2021 which prohibited the import of used vehicles over 10 years old. This means that the ordinary Zimbabwean who dreamed of having an affordable ex-Japan would now have to face scalpers from car dealerships. One of the things I insisted on when the government announced the ban was the lack of auto loans or specific vehicle financing.
There are a number of products on the market, including short term loans, but nothing that I saw browsing the interwebs was specifically aimed at cars. (also if you know any in the comments). However, and in a good turn of events, Nedbank Zimbabwe has relaunched its vehicle asset financing establishment.
Yesterday, the company posted a tweet outlining the terms and conditions for financing auto loans or auto loans.
We are delighted to advise you, our valued clients, on the relaunch of our Vehicle Asset Finance (VAF).
For more information, contact us at contactcentre@nedbank.co.zw #Nedbank#VAF
For terms and conditions click https://t.co/Fxneds2nwd pic.twitter.com/ygRSUhYSH1– Nedbank Zimbabwe (@NedbankZimbabwe) September 21, 2021
Nedbank Zimbabwe car loan terms
I guess the obvious thing is that you need to be a Nedbank account holder to be eligible for its vehicle finance facility. You will have, I’m sure you already guessed it, a salary that comes into your account as well as:
- Fill out a Nedbank vehicle financing request form.
- The assessment of the employer’s stability is carried out by the Bank.
- Satisfactory conduct of the account by the applicant.
- Copy of pay slips and current financial statements in the case of a corporate candidate.
- National identity or constitutive documents in the case of a company.
- Letter from employer (human resources manager / manager) support the request and confirm that this is a permanent job.
- Proof of address.
- Copy of driving license.
- Credit Checks – KYC, FCB, CRB and Global Checks.
- Pro-forma invoice from an authorized reseller.
The vehicle can be new or used, however, for used vehicles, Nedbank says only Nissan, Toyota, Ford, Chevrolet, Isuzu, Mazda Landrover and Mercedes Benz models are eligible for a car loan. In addition, Nedbank also specifies in its brochure that it does not finance “gray” imports.
Here are the vehicle loan conditions for individuals and businesses:
Personal auto loan terms
| TERMS | BRAND NEW | SECOND HAND |
| Initial deposit requirement | 20% | Minimum 20% for |
| Maximum duration | 36 – 60 months | 36 months |
| One-off administration costs | 1% | 1% |
| Arrangement fee (once) | 2% | 2% |
| Credit insurance | 3% | 3% |
| Limit | 8,500,000 ZWL | 6,000,000 ZWL |
Company car loan terms
| NEW VEHICLES PURCHASED THROUGH AUTHORIZED DEALERS | USED VEHICLES UNDER 5 YEARS OLD PURCHASED THROUGH AUTHORIZED DEALERS. | |
| Maximum quantity | Based on turnover | Based on turnover |
| To pay | 20% | 30% |
| Repayment period | Currently up to 18 months | Currently up to 18 months |
| Interest | MLR 40% pa + margin | MLR 40% pa + margin |
| Arrangement fees | Up to 5% lump sum advance. | Up to 5% lump sum advance. |
| Administration fees | Up to 5% | Up to 5% |
| Authorized Dealer and AA Reports | Not required | Obligatory |
| CVR, Interpol & Vehicle Theft Squad customs clearance | Not required | Obligatory |
| Back to back insurance | Obligatory | Obligatory |
You can download the vehicle finance brochure from Nedbank Zimbabwe with the link below:
