| Mon 26 May 2003, 12:22 | | Super Group rolls out hire-purchase savings |
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May 26, 2003
By Roy Cokayne
Pretoria - Super Group, the listed diversified logistics company, has launched a vehicle finance package for private buyers which it says reduces monthly repayments by an average of 33 percent compared with normal hire-purchase agreements.
Graeme Watson, the operations director of Super Group, said on Friday that significant savings depended on buyers being prepared to adapt to the concept of buying the use of a vehicle rather than the vehicle itself.
He confirmed that current legislation prohibited private leasing, and a 10 percent deposit was required.
Watson said there had been an "amazing response" to a pilot programme launched earlier this month to test market reaction to the package.
He added that the package was offered on a restricted number of models in the pilot phase but the company would consider financing additional models if these were attractive to customers and "worked for us".
He said the package was launched because affordability was one of the most significant inhibiting factors in the local passenger vehicle market, with virtually all sales being made to corporate buyers or with corporate support.
Watson said the finance package, covering selected vehicles in the Fiat, Honda, Mazda, Nissan, Opel and VW/Audi franchises, offered a guaranteed repurchase value over a reduced period
.
The finance package included routine service costs.
He said the value of the vehicle at the end of the usage period was underwritten at about 70 percent of the purchase price, based on an industry norm of 66 000km over three years.
"By applying an aggressive approach to the finance package we are able to provide new vehicle use over three years with an average saving of 33 percent on monthly repayments," he said.
At the bottom end of the scale, a Fiat Palio three-door, bought over 54 months with a 10 percent deposit at 17 percent interest and excluding service costs, required a monthly repayment of R1 628.
Under the Super Group scheme, payments were R1 149 a month, including routine services, Watson said.
At the top end of the scale, payments on an Audi A4 2.0 M/T in terms of Super Group's package were R3 099 a month, a saving of at least 38 percent compared with the monthly repayments of R5 018 for a 54-month hire-purchase contract at 17 percent interest.
"Providing the vehicle has been maintained properly and has not exceeded the prescribed mileage, the customer has the option after 36 months of handing it back and walking away, entering a new agreement for a new vehicle, or purchasing the vehicle out of the agreement at the value prescribed at the time of purchase," he said.
