MFC is the Motor Finance Corporation offered by Nedbank. Due to a recent merger between MFC and Nedbank Vehicle and Asset Finance, the previously named Motor Finance Corporation is now simply known as MFC.
The approach of this enterprise is to offer cost-effective services to clients, through the use of leading technology and motivated, well-trained staff.
MFC offers a full range of services relating to vehicle purchase and sale.
For a prospective buyer, the website lays out a simple 3 step process:
- – Calculate
- – Find a MFC accredited dealer
- – Choose a finance option
MFC offers 2 types of finance option:
- – Instalment agreement
- – Lease agreement
An instalment agreement applies when a buyer “purchases goods from the bank over a negotiated period at an agreed interest rate”. Here the buyer agrees to pay the full value plus finance charges and interest over an agreed upon amount of time. Once this is paid up in full, ownership of the vehicle is transferred into the buyer’s name.
The key features of this approach are:
- You can structure the repayment period and deposit amounts around your needs and situation
- Repayment periods can range from 24 – 72 months
- Interest rates can be linked to the Prime Lending Rate or they can be fixed for the duration of the lending period.
- As the buyer you have an option to choose a balloon payment
- You can take ownership of the goods once the final instalment has been paid.
A lease agreement allows client “uninterrupted use of goods rather than ownership of these goods”. Here, the client selects a vehicle or another durable item for his own use. This item is then purchase by the bank, and the client pays rental to the bank to be allowed to use this item during the specified period of time.
There are 4 options available to clients who have entered into a lease agreement, once this contract period comes to an end:
- – Give the asset back to the bank
- – Buy the asset from the bank
- – Sell or trade-in the asset on behalf of the bank
- – Lease the asset for a further period from the bank
The features of this option are very similar to the instalment sale. However, a bonus here is that the monthly rental payments are tax deductible. Deciding which option to go for will ultimately depend on whether you want to keep the asset or only use it for a period of time. Your decision will also need to factor in what you can afford to purchase, and how much you can afford to pay each month.
Nedbank’s Finance Motor Corporation offers numerous options which can be tailored to your specific needs and financial situation, making the MFC a viable options to consider when looking for vehicles, finance, insurance and warranty options.