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Going the lease route with your new car
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Most South Africans are still opting for the traditional instalment sale agreement to finance their new cars but some are considering alternatives like rental and leasing. Both options allow for an agreement of up to five years but leasing, in particular, is gaining popularity since it offers greater peace-of-mind and ease of use.

You're probably well aware that a car is a depreciating asset but, by leasing, you are able to shift the risk of owning your car, its residual value and its eventual sale across to a bank. Instead of owning your car and assuming full responsibility for the cost of buying, running, maintaining and selling it, the leasing option offers you a simple “one-stop shop” process. This is what is driving some car owners to re-evaluate the traditional instalment sale agreement.

Leasing offers several options for acquiring your car, including full maintenance leasing, with substantial operating benefits, but the risks transferred from the individual to the bank. Managing fuel costs and maintenance becomes so much easier and you can drive your car, hassle-free until your lease expires or its service life has ended.

The cost of operating your vehicle becomes easier to manage as they are linked to the ruling interest rate for the duration of your lease agreement. It also eliminates the unexpected financial surprises that can arise from major, unplanned mechanical repair bills.

Cars on lease undergo regular servicing and maintenance, ensuring that they remain reliable mechanically for the duration of the lease. It is not uncommon for car owners to miss maintenance intervals due to forgetfulness or to attempt to reduce their maintenance costs. Inevitably, this saving is short-lived as, in the longer term, the reliability of your car can be compromised and end up costing you more to fix.

We also offer you a sale and lease-back agreement where you can switch from ownership to leasing, if your car has done fewer than 30 000km and is less than 12 months old. Options such as roadside assistance, accident management and driver training may also be selected to offer you further peace of mind and ease of use.

For more on Standard Bank’s vehicle and asset facilities, visit

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