Vehicle Finance Options

Three Flexible Choices

Professionals in South Africa who qualify to receive a travel allowance may choose from our flexible car finance products and services.

Vehicle Finance Options

Car finance options differ in terms of tax treatment and the ownership of the vehicle.

  Instalment Sale Agreement Finance Lease Agreement Operating Rental
FINANCE PERIOD Allows you to finance the vehicle over a period of up to 72 months. Allows you to finance the vehicle over a period of up to 72 months. Allows you to lease the vehicle over a specified period up to 60 months, depending on monthly distance travelled.
Ownership Ownership automatically passes on receipt of final payment. Ownership automatically passes on receipt of final payment. Possible.
Benefits Monthly repayments can be reduced by structuring in a balloon payment*. Monthly repayments can be reduced by structuring in a balloon payment*. Constitutes the lowest cash outflow. More car for your money.
Best Suited For Those who want a longer finance period and/or would like ownership of the vehicle. Those who are paying a deposit or including a balloon payment as part of the payment plan. Particularly useful if you finance for less than 60 months. Those who would like the use of a car, much like a long-term rental, without having to own it.
Tax Treatment (for individuals who receive a travel allowance)


 
SARS allows for the deduction of finance charges and wear and tear at 20% per annum against travel allowance income. ** SARS allows for the deduction of the monthly payment (including balloon payment) against travel allowance income. ** SARS allows for the deduction of the monthly rental (including balloon payment) against travel allowance income. **

 *A balloon payment is a large, lump-sum payment scheduled at the end of a series of smaller periodic payments that pays the loan in full. This is possible if your credit rating allows.

** Applicable to travel allowance receivers and business’ only.