MFC is the Motor Finance Corporation offered by Nedbank. The merger between MFC and Nedbank Vehicle and Asset Finance. The company and brand previously named Motor Finance Corporation is now known as MFC.
MFC has consultants and staff members that are experienced, very professional and seek to help customers reach their goals of owning a good quality car. MFC provides lots of services for vehicle purchasing and sale.
MFC website focuses on potential buyers and it has 3 simple steps:
- Find a MFC accredited dealer
- Choose a finance option
MFC provides 2 types of finance options:
- Installment agreement
- Lease agreement
Installment agreement is an arrangement granted by the bank when a customer buys assets through the bank with a negotiated interest rate and term of repayments. The customer will thus agree to pay the outstanding loan amount in full plus fees charged and interest over a period of time. When the customer finishes paying the full. The vehicle ownership is then transferred to be the asset of the customer.
The key features of this approach are:
- Repayments of the loan can be based on your terms.
- You can choose the deposit amount in accordance to you affordability.
- Repayments can vary, from 24 to 72 months’ time period.
- For interest rates you can choose Prime Lending Rate. You have a choice of fixed interest rate over the repayments period.
- There is also a choice for balloon payment.
- Transferred ownership comes when the asset has been fully paid.
A lease agreement provides use of the assets rather than full ownership. The customer can choose a vehicle or any asset for personal purpose. The asset will be bought by the bank on behalf of the customer. The customer will pay rental fee of the asset to the bank for the use of the asset during the time period of the lease.
There are 4 options available to customers for 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 advantage of the lease option is that the rent payments are tax deductible. High earning individuals can use this option. Also individuals not interested in owning a car. The decision you will make is ultimately going to be based on your lifestyle, career, and affordability. Another advantage is you will have no resale risk. You will not have to mark down your asset so that it can sell in a flooded car market. You should think about leasing when you do not want to fully own a car, or if you use high millage every year. It can save you on depreciations costs.
Nedbank’s Finance Motor Corporation has a variety of options available for its customers. MFC is one of the best options to consider for vehicles, finance, and insurance and warranty options.