Capitec Bank has now disbursed over R1.1 billion in vehicle loans as of February 2025—a staggering 400% increase from last year’s figures. This rapid expansion places Capitec firmly in the fast lane of South Africa’s unsecured auto financing landscape.
● Loan Volume: Estimated 7 500 vehicle loans made, based on average WeBuyCars sale price of R143 000.
● Product Evolution: Launched in 2020 with just 10 pilot loans at a Cape Town WeBuyCars location.
● Distribution Network: Expanded to over 1 100 dealers, including 110+ WeBuyCars branches, The Car Place, and MotoData.
Unlike traditional bank offerings, Capitec’s vehicle loans are unsecured ‘purpose loans’—funds are paid directly to dealers. This enables them to undercut standard personal loan rates, which typically range from 12.75% to 28.25%, offering more affordable financing below 20%.
● Loan Limit: Up to R500 000 per vehicle.
● Term Length: Flexible repayment terms up to 84 months.
● Fees: One-time initiation fee (R1 207.50) and monthly service fee (R69), similar to traditional vehicle finance.
● Risk Factor: Long-term financing on older vehicles—averaging nearly 20 years old by term end—poses default risk.
While Capitec’s R1.1 billion figure remains modest compared to established players, it signals growing competition. For context, WesBank’s vehicle finance book alone generated R1 billion in profit in half a financial year .
● For Investors: Capitec’s aggressive growth in unsecured asset lending opens new revenue streams but invites credit risk scrutiny. Watch how delinquency rates evolve.
● For Consumers: These loans offer flexibility and access, but may carry higher cumulative interest and default risk—especially on older cars.
● For Competitors: Traditional banks may be prompted to rebalance their pricing models to maintain market share.
Disclaimer:
This content has been generated using AI technology and is intended for informational purposes only. While efforts have been made to ensure accuracy and relevance, this text should not be considered professional advice or an official statement. Always verify information from authoritative sources before making any decisions. This is not financial advice.
