Operating Rental


This is the ideal option if you receive a travel allowance and want to use the vehicle for a specific period of time and distance, without the ownership of a depreciating asset. It's much like hiring a car for an extended period of time.

Benefits

The Operating Rental generally provides the lowest cash outflow and the lowest risk:

  • You are able to fix all motoring costs with the exception of fuel expenses, assuming that the prime interest rate remains unchanged
  • You only pay for the portion of depreciation that you agree to use
  • VAT is not included in the purchase price and you only pay VAT on the portion you use
  • There is no risk of lower market resale value since you don’t own the vehicle
  • An operating rental agreement includes a residual value (guaranteed resale value) held by Bidvest Bank, thereby reducing the monthly rental payable
  • You may elect to attach or ‘bolt on’ a maintenance contract to further eliminate any risk such as unforeseen repair bills
  • Ownership is possible but not obligatory, by settling the remaining capital including the residual value