Bank Press

Need a Loan from a South African Bank? Find It Here.

standard bank south africa exchange rates’

Standard Bank Vehicle and Asset Finance

Looking for Vehicle Finance? Standard Bank Vehicle and Asset Finance offers you a loan to buy a vehicle of your choice and Pay the Loan Over Time. Find Out More

If you receive a car allowance there are several finance options available to you. As a travel or car allowance is to compensate you for travel expenses incurred on behalf of your employer, it is important to choose the finance option that best suits your needs. For more information on the tax benefits of a car or travel allowance,  find out from any of Standard Bank Branches.

Standard Bank Vehicle & Asset Finance

Looking for Vehicle Finance? Standard Bank Vehicle and Asset Finance offers you finance options that enable you to buy a vehicle of your choice and pay over time.

Below are Finance Options to choose from:

  • 1. Installment Sale

    This finance facility allows you to buy vehicles, and other assets, and pay for them over an agreed period. Ownership will pass to you automatically once you have made the final payment.

    Features

    • Deposits are negotiable.
    • Balloon payments can be structured into the agreement.
    • You can finance the vehicle over a maximum period of 60 months.
    • We own the asset during the term of the finance agreement; ownership is passed to you automatically once you have repaid us in full.
    • You can trade-in the asset once you have repaid us in full.
    • Market-related interest rates apply, which may be linked to the prime lending rate or fixed.
    • You are required to have the asset comprehensively insured for the period of the contract.
    • VAT is capitalised into the principal debt or paid on commencement of the agreement as an initial payment. Your copy of the agreement can be used as a VAT invoice, if you are able to claim an input tax.
    • There are no VAT implications on early settlement.
    • The asset should be capitalised according to the General Accepted Accounting Practice (GAAP) and the liability reflected on your balance sheet.
  • 2. Financial Lease

    This finance facility gives you the use of an asset while you are paying for it over the agreed term. Ownership does not pass to you automatically but is one of the options available to you at the end of the contract.

    Features

    • Deposits are negotiable.
    • Balloon payments can be structured into the agreement.
    • You can finance the vehicle over a maximum period of 60 months.
    • We own the asset. Once all payments have been made you may return the asset to us, negotiate to become the legal owner or renew the contract at an annual rental.
    • Flexible payment structures can be negotiated.
    • Market-related interest rates apply, which may be linked to the prime lending rate or fixed.
    • You are required to have the asset comprehensively insured for the period of the contract.
    • Lease payments are tax deductible. If an input credit has been claimed in respect of VAT paid, tax deductions will be limited to lease payments, excluding VAT.
    • VAT is capitalized into the principal debt or paid on commencement of the agreement as an initial payment. Your copy of the agreement serves as a VAT invoice, if you are able to claim an input tax.
    • The asset should be capitalized according to the General Accepted Accounting Practice (GAAP) and the liability reflected on your balance sheet.
    • There are no VAT implications at the end of the agreement period, unless you enter into a new rental agreement. In this case VAT will be levied on each rental.
  • 3. Financial Rental

    This facility allows you to use an asset while paying for it over an agreed period. Ownership does not pass to you automatically once you have made the final payment, but is one of the options available to you at the end of the contract. This facility is similar to a lease, except that VAT is not capitalized upfront but is paid with each rental.

    Features

    • Deposits are negotiable.
    • Balloon payments can be structured into the agreement.
    • You can finance the vehicle over a maximum period of 60 months.
    • We own the asset. Once all payments have been made you may return the asset to us, negotiate to become the legal owner or renew the agreement at an annual rental.
    • Flexible payment structures can be negotiated
    • Market-related rates apply which may be linked to the prime lending rate or fixed.
    • You are required to have the asset comprehensively insured for the period of the contract
    • Rentals are tax deductible. However, where you have claimed an input credit for VAT paid in respect of the rental, tax deductions will be limited to rentals, excluding VAT
    • VAT is not capitalized upfront. It is added to each rental payment.
    • There are no VAT implications at the end of the agreement period, unless you enter into a new rental agreement, in this case VAT will be charged on each rental.
    • At the end of contract you can return the vehicle to us, negotiate to become the legal owner or renew the agreement at an annual rental.
  • 4. FinRent Consumer

    FinRent Consumer is a rental agreement that gives you a reduced monthly payment on a vehicle. The low payment is made possible through the introduction of a residual value. This means that each month you pay for the portion of the vehicle you expect to use.

    Features

    • The finance agreement is between us as the rentor and you as the rentee.
    • Deposits are negotiable.
    • You can finance the vehicle over a maximum period of 60 months.
    • Rentals are calculated on the basis of the residual value at the end of the period. Extras may be financed but are not taken into account when calculating the residual value.
    • You pay for the portion of the vehicle you expect to use, based on kilometres and the contract period.
    • For all vehicles financed, under FinRent Consumer, the maximum mileage is 27 000km per annum or 135 000km over 60 months.
    • If the agreed maximum kilometres are exceeded, the agreement provides for a penalty payment for each additional kilometre. The penalty is charged should you decide not to buy the vehicle at the end of the contract.
    • You have the opportunity to drive a new vehicle more often.
    • Value added tax is not capitalised upfront. It is added to the individual rentals, including the deposit or initial rental and the book value.
    • You are required to have the vehicle comprehensively insured for the period of the contract.
    • At the end of contract you can return the vehicle to us or negotiate to buy it at market value.
  • Full Maintenance Lease

    A full maintenance lease (FML) is a comprehensive financial and maintenance package. It allows you to outsource the administration and maintenance of your vehicles to Standard Bank Fleet Management. It is a simple way of acquiring vehicles at a fixed monthly cost. An FML is offered to corporate and commercial customers.

    Features

    • The facility is available to you if you use the vehicle for business purposes, a maximum finance period of 60 months applies, and you are not required to pay a deposit.
    • We own the vehicle, at the end of the agreement you return it to us or negotiate to become the legal owner.
    • Standard Bank Fleet Management will source and buy the vehicle on your behalf.
    • The repayments are based on the period of the agreement and estimated distance to be travelled.
    • Repayments are adjusted if the average monthly distances travelled change by more than 10% from the estimated distance agreed upfront, or you could be charged an excess amount at the end of the contract.
    • Monthly rentals, not interest rates, are quoted and are subject to variations in the prime lending rate.
    • You are required to have the vehicle comprehensively insured for the period of the contract.
    • VAT is not capitalised upfront, but is payable on each rental.
    • Payments include VAT and are tax deductible. However, where you have claimed an input credit for VAT paid in respect of the rental, tax deductions will be limited to rentals, excluding VAT.
    • The asset is not reflected on your balance sheet. The rental is, however, shown as an expense on your income statement.
    • On termination of the agreement the vehicle is returned to us, so there are no tax implications

For your convenience, the Vehicle Purchasing Unit will source the vehicle of your choice from our extensive network of approved dealers. Our finance packages provide everything you need, including:

  • A full range of insurance products
  • A Personal Motorcard, which is a convenient method of paying for and controlling vehicle-related costs
  • The ability to link your Instalment sale or Financial lease agreement to an Access Finance account to help reduce your interest charges
  • Flexible repayments arranged to suit your cash flow

To Apply

  • Phone our call centre on 0860 000 000
  • Visit any Standard Bank branch
  • Visit any of our approved dealers

Standard Bank Vehicle and Asset Finance the best options for vehicle finance on offer !