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This product began small. Simply earlier than lockdown in 2020, Capitec examined the mortgage at a single dealership with only some purchasers.
At present, they’ve grown their community to over 1 100 automotive sellers (together with massive names within the automotive gross sales business like WeBuyCars). The mortgage quantity can go as excessive as R500 000, and consumers can take so long as 84 months to pay it off. As a result of the mortgage is for a transparent goal (shopping for a automotive), the rates of interest are usually supplied at a bit decrease than regular private loans and normally fall beneath 20 p.c, relying on the consumer’s profile.
‘From simply R220 million in early 2024, Capitec’s car mortgage ebook has grown greater than 4 occasions over in a single 12 months’
This targeted and easy product has grown quick within the final 12 months. From simply R220 million in early 2024, Capitec’s car mortgage ebook has grown greater than 4 occasions over in a single 12 months.
Based mostly on common car costs, this implies the financial institution has helped round +- 7 500 purchasers purchase vehicles. Whereas that is nonetheless small in comparison with the massive banks that dominate the automotive finance market, it exhibits that Capitec is critical about increasing into this area. It additionally types a part of an even bigger shift, because the financial institution now provides loans for different particular wants (like training and residential upgrades).
