Capitec quadruples its vehicle loan book to R1.1 billion

Capitec disbursed a total of R1.1 billion in vehicle loans to February this year, a more than fourfold increase on the size of its book the previous year.

- Moneyweb

Moneyweb

These have a maximum value of R500,000, although WeBuyCars offers a useful data point in that the average selling price of its vehicles is a little over R143,000.

Using WeBuyCars as a proxy (simple, given its scale), Capitec disbursed loans for a total of 7,500 vehicles.

It launched its vehicle loan product in 2020, just weeks before the Covid lockdown.

By the time the hard lockdown started, it had granted around 10 loans at the test site at the WeBuyCars "supermarket" in Brackenfell, Cape Town.

The test was successful and its vehicle loans are now available at more than 1,100 dealers across the country, including the more than 110 WeBuyCars locations.

Its other main partners are The Car Place and MotoData which sells itself as a provider of "alternative finance".

Capitec Bank's vehicle loans differ from traditional vehicle and asset finance in that its loans are not secured.