Ariva, the joint venture between Imperial and the JD Group, has announced a new programme that will afford first-time buyers and those who have struggled to gain vehicle finance through banks the opportunity to drive a new car.
There’s no getting around it; the cost of all things motoring is constantly on the rise and the means of getting behind the wheel of a new car are becoming more limited for a growing number of South Africans.
Ariva, which is a partnership between Imperial (which offers every popular brand of vehicle and accounts for one in five new vehicles retailed in South Africa) and the JD Group (owners of such lifestyle brands as Joshua Doore, Russells, HiFi Corp and Incredible Connection) looks to address the issue by providing a full vehicle maintenance rental scheme to provide what it describes as an affordable, all-inclusive mobility package for a significant number of customers who have been unable to obtain traditional bank finance.
Research by the JD Group noted that more than 60 % of all vehicle finance applications were rejected by the traditional banks, of which a significant percentage have an acceptable credit risk based on a credit scoring criteria that has been witnessed via term-based purchases of lifestyle products within the group’s existing portfolio with a fixed monthly rate.
“We aim to expand the number of consumers who can access affordable motoring through an innovative rental product” says David Smith, Managing Director of Liquidcapital, a financial services division of the Imperial Group. “And while Ariva is able to offer vehicles in most segments of the market we expect the sub R150 000 price range to be the most popular”.
The scheme is based on a full maintenance rental concept only requires fixed monthly rentals that cover many of the monthly costs of ownership over the period of the agreement, without the associated risks of actually owning the vehicle. This fixed instalment arrangement is designed to protect customers from unpredictable cash outflows associated with vehicle ownership, making vehicle ownership less complex.
The programmes include:
– A new car for the 54-month term spanning 112 500 km – excess mileage charged at 90c/km (48 months for used and commercial vehicles)
– Fully comprehensive insurance and a vehicle tracking device, plus service subscription
– 27/7 roadside assistance
– Options of ‘Premium’ maintenance (includes full vehicle maintenance and tyres for the period of the contract) or ‘Lite’ (solely covers vehicle servicing)
– Accident management and a bonus reward benefit.
An example of the possible savings versus a 54-month HP programme with a Kia Picanto 1,0 (includes the aforementioned extras (HP with 12 months roadside assistance vs the 54-month cover via Ariva and bank fees) works out at R3 463 for HP and R2 861 for Ariva.
Basically, once you’re approved, you just need to pay a refundable deposit of one month’s rental up front and then set up a debit order for the remainder of the contract. Vehicles will be serviced and managed via Imperial’s nationwide dealer network. Check out the Ariva website for further details.
