# Work permit & Car loan



## su8898 (Apr 17, 2013)

Hi
I tried going through the whole forum but could not find a clear answer. 

Is it possible for a work permit holder to get a car loan in RSA? As I understood from various internet sources, the bank requires a valid South African driver's license to apply for the car loan. However, to get a South African driver's license, you need to have a Permanent Resident permit. Does this mean you need to get the Permanent Residency before you can apply for the car loan?

Any advices?


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## Johanna (Apr 13, 2009)

You will also need a credit record before you can apply for a loan.


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## LegalMan (Dec 26, 2012)

There are many ways to get around anything in SA, in a legal manner. Applying for a line of credit is particularly difficult if you are a foreigner, as the financial sector is very rigid. In fact, many people don't know that SA's finance sector ranks in the top 5 globally.

1. Johanna is correct, start with a credit record. Open a credit account at your local clothing chain store, and buy something, pay it off the next day, and bang, you have a credit record.
2. Some banks will also grant a loan based on copious forms and proof of employment.
3. Some employers will assist you with letters for the bank.
4. Some banks will do it if you pay a larger deposit upfront.

People can change their driver's licences on a temporary residency permit. Apparently this is a form to fill in, not a big procedure at any traffic department. I haven't done this for any of our clients before, they usually do it themselves.

Hope all this helps.


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## LegalMan (Dec 26, 2012)

Hope I was clear on this point: On a temporary residency, you should be able to open an SA bank account and with employment then it should not be a problem to apply for a car finance.


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## su8898 (Apr 17, 2013)

Thanks Johanna for the advice.

Thanks a lot LegalMan for the detailed explanation. I think your reply explains it all. Hope this will be helpful for people looking for the same.


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## Saartjie (Mar 1, 2010)

LegalMan said:


> There are many ways to get around anything in SA, in a legal manner. Applying for a line of credit is particularly difficult if you are a foreigner, as the financial sector is very rigid. In fact, many people don't know that SA's finance sector ranks in the top 5 globally.
> 
> 1. Johanna is correct, start with a credit record. Open a credit account at your local clothing chain store, and buy something, pay it off the next day, and bang, you have a credit record.
> 2. Some banks will also grant a loan based on copious forms and proof of employment.
> ...


Sorry to jump this thread but must just query the comment about changing your drivers license on a TR. I was under the impression that this is not possible. The website of South Africa Government Service states:

_If you have been granted South African permanent residence, you must convert your foreign driving licence to a South African one within a year of receiving your permanent residence permit. 

If you fail to convert your licence within one year, it will be regarded as invalid.

You can also apply to convert your driving licence to a South African one if you hold a diplomatic permit but don’t have a permanent residence permit._

Before I knew the above I tried to convert my UK license but was told I could not do so because I did not have PR.

Please, if you know how to convert on TR I would really appreciate how to go about it as I have in effect been driving 'illegally' on my UK license for the past 2 years.


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## 2fargone (Jun 14, 2011)

Saartjie,

I tried also to convert my license, but I was told I couldn't on TR.


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## LegalMan (Dec 26, 2012)

Ok, let me check on this to be 100% sure. I have had some clients who have done it, of that I am almost 100% sure.  Hopefully it is not a case of some administrative staff doing the wrong thing.


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## MissGlobal (Aug 4, 2012)

Hey guys, we just bought a car ( cash) but we did inquire about the process of financing a car. Here's the gist from what we were told at the dealer : 

1 - You can get a loan - even if you aren't on permanent residency. Your loan term will not extend beyond the end date of your visa. 
2 - You need to convert your license to a SA license to buy a car ( ONLY if you need to get financing with a SA Bank). Otherwise - your foreign license will work just fine. 
3 - Believe it or not - Insurance is optional - but mandatory if you are financing a vehicle. Can't believe we drove off of a lot with an uninsured car! Needless to say we had it insured the very next day!
4 - And don't quote me on this - I think that you can get financing with a dealership on a TR visa and your foreign license. I remember the dealer saying something to that effect - but that the banks would not accept a car loan without a local license. 

Here's a thought - and it just depends on your credit in your home country and in interest rates there. SA interest rates for loans suck! If you have the credit - you may want to consider buying a car using foreign financing. You can do it by wire transfer or by credit card. Only major dealers will accept credit card purchases - and Audi has a special deal with American express - where you can use the Amex card and you won't have to pay the 5% credit card fee. 

Sorry I'm all over the place with this - but I hope it helps.


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## howe73 (Aug 26, 2012)

Hi, 

Most banks allow you to apply for a car loan after 3 months of opening an account and your loan will be for the period of your work premit. I got my loan through FNB, who authorised my loan within 1 week of opening account so they are well worth a try. I didn't need an SA driving licence, my UK one was fine. If you go to a decent dealership then they will do most of the paperwork for you, but you will have to make the trip to the vehicle licensing registration offfice yourself. 

Good luck


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## LegalMan (Dec 26, 2012)

Ok, here is the final word from me:

1. One can apply for a South African driver’s license whilst on a temporary residency permit, but you would have to redo your driver’s test.
2. Otherwise you can drive on your foreign license whilst you are on your temporary licence.


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## 2fargone (Jun 14, 2011)

Legalman 

Is this quoted from somewhere? Has this always been in effect?


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## Bradley Minns (Aug 23, 2012)

MissGlobal said:


> Hey guys, we just bought a car ( cash) but we did inquire about the process of financing a car. Here's the gist from what we were told at the dealer :
> 
> 1 - You can get a loan - even if you aren't on permanent residency. Your loan term will not extend beyond the end date of your visa.
> 2 - You need to convert your license to a SA license to buy a car ( ONLY if you need to get financing with a SA Bank). Otherwise - your foreign license will work just fine.
> ...


Hi Missglobal,
Who did you for insurance? I'm having trouble finding a company to insure me on a UK drivers license!?


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## Saartjie (Mar 1, 2010)

Bradley Jaguar East Rand said:


> Hi Missglobal,
> Who did you for insurance? I'm having trouble finding a company to insure me on a UK drivers license!?


My husband and I both have UK licenses and we are insured through Hollard.


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## LegalMan (Dec 26, 2012)

There are many companies that insure foreigners, however they sometimes require other information to complete a profile on which they can make a decision. Saartjie above says Hollard, I know Outsurance does this too.


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## MissGlobal (Aug 4, 2012)

Something else - the insurance isnt really tied to the driver - it's all about the car. So our insurance for example - is tied to our car - doesn't matter who's driving it.

Our company is Auto and General. It was easy to set up - over the phone.


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## LegalMan (Dec 26, 2012)

*Driver's License in South Africa for foreigners*



2fargone said:


> Legalman
> 
> Is this quoted from somewhere? Has this always been in effect?


It isn't written exactly like that in the law, but that is how it can be interpreted. I haven't yet heard of our clients having any problems with this.


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## AfricaBen (Aug 2, 2014)

MissGlobal said:


> Hey guys, we just bought a car ( cash) but we did inquire about the process of financing a car. Here's the gist from what we were told at the dealer :
> 
> 1 - You can get a loan - even if you aren't on permanent residency. Your loan term will not extend beyond the end date of your visa.
> 2 - You need to convert your license to a SA license to buy a car ( ONLY if you need to get financing with a SA Bank). Otherwise - your foreign license will work just fine.
> ...


Hi all

I am new to the forum and I am looking for advice on obtaining vehicle financing as a temporary resident. I have been through the financing application process and no bank is willing to provide me with vehicle financing beyond 24 months, which is when my permit expirts. The one offer i did receive from WesBank was for R8,200 per month at an interest rate of 18%, which is extortionate. 

In the post above Miss Global mentions financing a vehicle through foreign financing. Can anyone please provide further guidance on this? Who to use and how to go about the process? Any guidance would be very much appreciated. This seems like the only option? If anyone else has any other ideas or experiences that may be helpful please share.


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## IamT (Aug 4, 2014)

I got vehicle financing easy in 2011 and the below is what they wanted;

International drivers licence (you can get that from your home country AA office)

My home country drivers licence

SA Traffic Register (you can get this from your nearest traffic dpt office-no tests to do hear, only present your home licence,AA Licence, Passport with permit, letter from employer that you are employed, 2 passport sized photos) 

I had a current account with the bank concerned were my salary was incoming (no other bank offered me anything!)

I had 2 credit accounts which I operated for a year prior to applying for vehicle finance.

Was offered 11% rate and required 25% deposit.Currently because I have managed to avoid any arrears on the car loan, the bank keeps calling me offering me a 2nd loan on 0% deposit as I have 1 pmt to go.

I think it all has to do with different banks and their policies.Some banks are more accommodating to foreigners, some are not.


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