Chery Finance: The Cost-Effective Way To Own Your Car
At Group1 Chery, we understand that you need all the facts to make the best financing decision for you. Buying a car is a big milestone, and it’s about so much more than getting from A to B.
It’s about freedom, reliability, and knowing that you’ve chosen a vehicle that will fit into your life, whether you’re dropping the kids at school, heading off on a weekend road trip, or simply in the market for a good-looking set of wheels you can count on. Whether it’s your very first Chery or an upgrade to something bigger and bolder, you want to be sure you’re making the right call. That’s where we come in.
Our job is to take the stress out of the Chery finance process and give you straight answers about what’s possible. With expert guidance, flexible finance structures, and a friendly team that’s got your back, we’ll help you line up a plan that feels doable for your lifestyle and comfortable for your pocket, because the journey should start with fun and excitement rather than uncertainty and stress.
Chery Finance Options Explained
Here’s a breakdown of the most common types of Chery finance and car buying options available through Group1, in partnership with leading South African banks and trusted financial institutions.
Installment Sale Agreement
This is the classic way most South Africans buy cars. You choose your Chery, agree on a deposit (if any), and then repay the balance in fixed monthly instalments over a term of 24–72 months. You can opt for a fixed or linked interest rate, and once the final payment is made, the car is all yours. It’s straightforward, predictable, and gives you a clear path to ownership.
Balloon Or Residual Payment Plan
Want lower monthly payments? A balloon plan lets you defer a portion of the vehicle’s cost to the end of the term. That means smaller instalments during the agreement, but a lump sum to settle at the end, either by paying it off, refinancing, or trading in your vehicle. It’s a great choice if you plan to upgrade in a few years or expect your finances to shift in your favour down the line.
Lease agreement
Leasing is a solid option for savvy South African motorists who prefer the flexibility of “using” a vehicle rather than taking full ownership straight away. With this route, you pay a fixed monthly amount over the lease term, which can be especially useful for businesses since those payments may be tax-deductible. At the end of the agreement, you’ll have several choices: you can return the car, upgrade to a new lease, or purchase the vehicle at a pre-agreed residual value.
Step Payment Plan
This plan is designed for buyers whose income is likely to grow over time. Instead of fixed monthly payments, you start with lower instalments that increase in “steps”, typically every 12 months. In South Africa, step plans often run over eight years, with the first four years gradually stepping up, and the last four remaining constant. While it may cost more overall, it allows young professionals or families to ease into car ownership without putting too much strain on their budget in the early years.
Buying A Car Outright (Cash Purchase)
Paying cash means no loans, no interest, and full ownership from day one. It’s simple, but there are still some things to keep in mind in the South African context. Dealerships will require proof of funds via EFT or direct deposit. Large physical cash payments aren’t accepted for security reasons. FICA regulations apply no matter how you pay, so you’ll need to provide your ID, proof of residence, and, in some cases, proof of income. Don’t forget on-the-road costs like registration, plates, and licensing. Warranty and service plan choices still apply, and are well worth considering for peace of mind.
IMPORTANT TO NOTE FOR ALL BUYERS
When you put together your Chery finance deal, a few key choices will shape what your monthly repayments look like. Putting down a deposit can ease the load straight away; the bigger the deposit, the smaller the amount you’ll need to borrow.
Opting for a balloon or residual value lowers your monthly instalments too, but remember that you’ll need to budget for that final lump sum when the agreement ends. And if you’ve got a trade-in, its value can count towards your deal, cutting down the balance you still need to finance.
Behind The Numbers: Smarter Chery Car Finance
Car finance isn’t just about signing on the dotted line; there are moving parts that can make a big difference to what you pay each month and how smooth the process feels. From deposits, trade-ins, and balloon payments to the guidance of your dealership’s F&I manager, here’s what really goes on behind the numbers.
How Do Deposits, Balloons, And Trade-Ins Affect My Deal?
Let’s break it down with a real-world example: a brand-new Chery with a selling price of R460,999.
With a 10% deposit:
Put down R46,099 and finance the remaining balance. Your monthly instalments will be significantly lighter because you’re borrowing less from the bank.
With no deposit + 25% balloon:
Finance the full R460,999, but defer R115,250 to the end of the term. Your monthly instalments will be lower, but you’ll need a plan for that lump sum when the contract ends.
With a R150,000 trade-in:
Trading in your current vehicle upfront chops a big chunk off the financed amount, leaving only R310,999 to be repaid. That can make your new Chery much more affordable month-to-month.
What Does An F&I Manager Do?
Once you’ve chosen your Chery, our Finance and Insurance (F&I) Managers step in. Think of them as your guide through the financial jungle. Their role is to:
- Present Chery finance options from multiple banks and help get your application approved.
- Explain insurance products such as comprehensive cover, credit life, and gap insurance.
- Offer add-ons like extended warranties, service or maintenance plans, and protective extras.
- Handle all the admin and legal compliance, from loan agreements to registration paperwork pertaining to the Chery you want to finance.
In short, these wonderful humans bridge the gap between choosing your Chery and driving it home, making sure every detail is covered and every option is clear.
Get In Touch With A Group1 Chery Finance Expert
Chery finance doesn’t have to feel complicated. At Group1 Chery, our finance team is here to guide you step by step, explain the fine print, and help you secure a deal that makes sense for your life. Whether you’re leaning towards an instalment sale, curious about balloon payments, or considering a step payment plan, we’ll find a structure that works for you.
Ready to take the next step? Get in touch with a Group1 Chery finance expert today, and let’s get you behind the wheel of your dream Chery.