Audi South Africa has officially launched the Audi Assured finance option that offers a guaranteed buyback of your vehicle for a pre-determined amount after a set period of ownership.
Speaking on Talk 702, Asif Hoosen, head of retail, planning, and supply chain at Audi South Africa, said the Assured option was introduced to give local buyers more surety and predictability in the volatile used-car space.
“Audi Assured is setting aside a guaranteed buyback on any vehicle purchased that is financed through Audi Financial Services, in the interest of the consumer, to protect consumers against excessive vehicle depreciation and market volatility,” said Hoosen.
The automaker found that many South African motorists finance their vehicles for long periods of time (>72 months) with a sizeable balloon payment, and after a few years when they want to sell the car before the end of the contract, they realise that they still owe much more than what it’s worth and must deal with that shortfall out of their own pocket.
“Those customers that we have been able to engage with now that we’ve launched [Audi Assured] into the market are definitely seeing the merits of it, but we need to educate consumers on it to advise them that it’s actually within their best interests to consider this type of financial product when purchasing a motor vehicle,” said Hoosen.
How it works
The Audi Assured option applies to the manufacturer’s entire range, from the entry-level A1 all the way up to the flagship RS and e-tron models.
When purchasing a vehicle through Audi Assured, the first step is selecting the model of your choice, after which Audi Financial Services will work out a “flexible deposit” that you are comfortable with paying, which may potentially be covered by a trade-in if you have one.
The next step is to decide how many kilometres you will drive per year, as well as how long you want the contract to last.
The mileage options include 18,500km, 20,000km, 25,000km, or 30,000km; while the length of the agreement can be anywhere from 24 to 48 months.
Based on these parameters, Audi will offer you a guaranteed future value (GFV) for the car you are applying for and calculate the monthly repayments accordingly.
At the end of the term, you will then have three options. You can either keep the car, return it and if all is in order receive your guaranteed buyback, or trade it in for a new one.
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