The Witness - Wheels - - SUPPLEMENTS - — Sup­plied.

KEITH Wat­son, MD of spe­cial­ist pri­vate leas­ing company Ariva, be­lieves pri­vate leas­ing will be­gin com­pet­ing in the main­stream mar­ket. He said pri­vate leas­ing is widely used around the world and is one of the fastest grow­ing forms of ve­hi­cle fi­nance.

“While pri­vate leas­ing is still in its in­fancy in South Africa and it may not take the mar­ket by storm in 2015, it will con­tinue to grow pro­gres­sively as more con­sumers come to re­alise the ben­e­fits leas­ing of­fers and recog­nise it as a vi­able al­ter­na­tive in the mar­ket,” says Wat­son.

In South Africa, lux­ury brands have al­ready been of­fer­ing branded leas­ing so­lu­tions for a num­ber of years. Few con­sumers to­day ever ac­tu­ally “own” the car they buy as there are still rel­a­tively high per­cent­ages of con­sumers sell­ing or trad­ing in their cars well be­fore the end of their in­stal­ment con­tract term.

“Th­ese con­sumers are ef­fec­tively leas­ing and, the only real dif­fer­ence is that they take on the ad­di­tional costs as­so­ci­ated with the cost of own­er­ship as well as the ve­hi­cle de­pre­ci­a­tion risks. We there­fore want to dif­fer­en­ti­ate in the lo­cal mar­ket be­tween buy­ing, own­ing and leas­ing a car … by con­tin­u­ing to ed­u­cate con­sumers on all the fi­nance prod­ucts avail­able to them, so that they can make an in­formed decision and choice for them­selves.”

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