Buying a car on credit in Namibia isn't only a matter of agreeing a rate with the bank. When you buy a car for private use, the Credit Agreements Act sets rules about the deposit, the term and the shape of the repayments.
The deposit and the term
Government Notice 218 of 2020 (Government Gazette of 1 September 2020) sets the rules for passenger vehicles, up to 15 seats, including motorcycles:
- you must pay at least 10% of the cash price up front; and
- the finance can run for at most 72 months from delivery.
A trade-in counts towards the deposit.
No balloon for private buyers
The Act's regulations say no instalment may be more than 10% bigger than any other, except a smaller final one. In practice that rules out a balloon payment, the large lump sum some finance deals leave to the end, on a car bought for private use.
Cars bought for the business
The Act doesn't apply where goods are bought only for business activities. A business buying a car can agree a balloon or a longer term. The Usury Act's maximum rate still applies, for finance up to N$500,000: 1.6 times the prime rate, 16.4% today.
An example
A N$400,000 car with a N$40,000 deposit, financed over 72 months at 15%:
- the instalment is N$7,612.20 a month;
- interest over the six years comes to N$188,078.93.
Over 60 months instead, the instalment rises to N$8,564.37, but you pay N$34,216.26 less interest. Our car finance calculator checks your deal against the rules as well as working out the cost.
If you fall behind
For a car bought for private use, the Act protects you:
- The lender must first write to you and give you at least 30 days to pay, or 14 days if you've fallen behind twice before, before it can claim the car back.
- After it takes the car, you have 30 days to pay the arrears and reasonable costs and get the car back.
- If the car is worth more than what you still owe when it's returned, the lender must pay you the difference.
Paying early
You can settle early. The agreement may ask for up to 90 days' notice, and the lender must recalculate the finance charges.
Before you sign
Ask for the total you'll pay, including every fee, and check the rate against the legal maximum. Read the agreement carefully, and ask questions before you sign.
Sources
- Credit Agreements Act 75 of 1980 and its regulations (Legal Assistance Centre)
- Government Notice 218 of 2020 (Government Gazette 7321)
- General Notices 571 and 572 of 2018 (Government Gazette 6736)
- Bank of Namibia: Monetary Policy Committee statement, 12 August 2026
This is general information, not tax, legal or financial advice.