Freedom, independence, and financial stability - these are all words tied to the idea of car ownership in South Africa. Unfortunately, for many South Africans, car ownership comes with financial hurdles that are often too difficult to overcome.
The need for hefty down payments, the burden of purchasing a depreciating asset, and the high monthly instalments often deter young South Africans from taking the leap and buying a vehicle.
A new model, namely the rent-to-buy subscription, is revolutionising the way South Africans view car ownership. This model seeks to bypass many of the barriers constructed by traditional car ownership.
At We Rent Cars, we’re committed to reshaping the narrative around car ownership in South Africa. As we delve deeper into the financial benefits conferred from a rent-to-buy subscription, it becomes clear that this innovative model is the future for South African drivers.
The Challenges of Car Ownership in South Africa
Traditional car ownership comes with a few poignant challenges that make it an unrealistic option for many young South Africans:
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Excessive Down Payments: To buy a car in the traditional sense often requires a substantial upfront investment that many in this country simply can’t afford.
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Stiff Monthly Instalments: After making a big down payment, the burden of having to pay high monthly instalments adds to the financial strain of car ownership.
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Vehicle Depreciation: Cars are depreciating assets - the more you use them, the lower their value becomes. The reality of vehicle depreciation leads to overall financial losses when the time comes to sell and upgrade.
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Maintenance Costs: Going even further beyond the initial purchase price and monthly payments, maintenance costs can quickly add up, making the overall package an extremely expensive one.
A rent-to-buy subscription attempts to sidestep these challenges, while also providing extra financial benefits to drivers. Let's see how…
The Financial Benefits of a Rent-To-Buy Subscription
A rent-to-buy subscription offers individuals access to a vehicle for a set period on a rental basis, with the option to eventually purchase and own the vehicle. This comes with many financial benefits:
1. Skipping the Large Down Payment
Possibly the most significant and visible financial benefit of choosing a rent-to-buy subscription is the fact that it eliminates the need for a large down payment.
Normally, with a rent-to-buy subscription, there might be the need to pay a small deposit when initially subscribing, but this amount is significantly smaller than the one needed to finance a vehicle in the traditional sense.
By removing the first, and largest, barrier to vehicle ownership, a rent-to-buy subscription paves the way for more equitable and accessible options for South Africans.
2. Flexible Monthly Instalments
Another key advantage offered by rent-to-buy subscriptions is the fact that their monthly instalments are flexible and will be negotiated according to what you can afford. These plans provide massive flexibility in an attempt to avoid exclusion from car ownership.
By choosing the rent-to-buy subscription model over a traditional long-term car financing plan, subscribers receive payment options that better suit their income streams, making the monthly instalments more manageable.
3. Building Credit Through Subscribing
At We Rent Cars, we don’t look at your credit history when you decide to subscribe to our rent-to-buy car subscription. In fact, we don’t even care if you’re blacklisted!
However, a hidden benefit of choosing our rent-to-own model is that you will be slowly repairing your credit score by paying lower monthly instalments.
By leveraging rent-to-buy subscriptions as a means to build credit, you’ll not only gain access to reliable transportation but also lay a solid foundation for financial growth and stability in the long run.
4. Side Stepping Depreciation
As mentioned above, vehicles are depreciating assets, and they will lose value over time, causing an eventual financial loss.
However, with rent-to-buy subscriptions, subscribers are not burdened with the responsibility of owning depreciating assets. Instead, they can enjoy the benefits of driving a reliable vehicle without bearing the financial risk of depreciation.
This is because you can simply upgrade to newer models and vehicles, following discussions with your chosen dealership.
5. Maintenance and Insurance Covered
Most rent-to-buy, or car rental subscriptions in general, include comprehensive benefits that end up saving drivers a lot of money in the long term. These benefits usually include maintenance and insurance coverage.
At We Rent Cars, for example, subscribers receive a tracking device, yearly licence renewal, 24-hour roadside assistance, comprehensive insurance, and minor services every 10,000 km for 54 months, with their rent-to-buy vehicle.
We Rent Cars - Breaking Down Barriers to Car Ownership
So, it’s clear that the rent-to-buy car subscription currently stands at the forefront of the evolving South African car ownership market.
Through innovative solutions, this model of vehicle financing overcomes many of the financial hurdles associated with traditional purchasing methods.
Contact a We Rent Cars agent today, to start looking into the rent-to-buy subscription yourself.