LEASING AS VEHICLE FINANCE
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.”