Avis has embarked on a journey to reposition its brand from a traditional car rental company to a “comprehensive mobility services provider for businesses and consumers” in South Africa.
Avis is one the largest vehicle rental businesses in the industry with over 70 outlets situated around the country.
Among its new offerings, Avis will provide a long-term car subscription service branded iLease in hopes of securing a foothold in the budding sector before it goes mainstream.
“This strategic repositioning is a significant step for Avis and marks a pivotal moment in its commitment to innovation and meeting the evolving mobility needs of its customers,” said the company.
Avis iLease
Avis’ new value proposition for South African clientele is its iLease car subscription service.
iLease allows consumers to use a vehicle for an extended period of time on one monthly payment without taking ownership of it.
Contracts range from one to four years with annual mileage parameters set by the customer, and the single monthly fee includes comprehensive insurance, standard vehicle maintenance and tyre replacement, a telematics device, roadside assistance, and yearly licensing costs.
The company will purchase virtually any vehicle of your choice within the Avis Fleet and Avis Car Sales network and lease it to you, as long as it’s either brand new or less than one year old.
“iLease is an important milestone for us in leading the charge towards a usership economy in South Africa. This product offering recognises that mobility is evolving, and today more than ever is redefining the way people move, connect, and experience life individually,” said Ramasela Ganda, CEO of Zeda, which operates Avis in South Africa.
“Additionally, the consumer behaviour of millennials, who are more open to new concepts, makes this an opportune time for Avis iLease to revolutionise the South African automotive landscape.”
Avis provided the following cost breakdown for the VW Polo Vivo 1.4 Trendline, comparing the prices of its subscription service versus traditional bank finance:
| Polo Vivo Trendline | iLease | Bank finance |
|---|---|---|
| Car price | R264,400 | R264,400 |
| Contract period | 48 months | 48 months |
| Monthly mileage | 1,500km | 1,500km |
| Balloon payment | n/a | R105,760 (35%) |
| Interest rate | n/a | 12.75% |
| Finance payment | n/a | R5,402pm |
| Maintenance/tyre provision | Included | R881pm |
| Insurance | Included | R1,763pm |
| Roadside assistance + tracker | Included | R120 |
| Total monthly cost | R7,521 | R8,219 |
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