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Tuesday / 16 July 2024
HomeNewsAvis launches car subscription service in South Africa – Prices compared to bank finance

Avis launches car subscription service in South Africa – Prices compared to bank finance

Avis Fleet has launched iLease in South Africa, allowing consumers to use a vehicle for an extended period of time on one monthly payment without taking ownership of it.

iLease contracts range anywhere from 12-48 months with custom mileage parameters, 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 also 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.”

Price comparison

iLease provided two examples of its leasing products when compared to traditional bank finance for popular vehicles, namely the entry-level VW Polo Vivo Trendline and the entry-level VW T-Roc Design.

For the Polo Vivo, the cost breakdown is as follows:

Polo Vivo Trendline iLease Bank finance
Car price R248,498 R248,498
Contract period 48 months 48 months
Monthly mileage 2,500km 2,500km
Balloon payment n/a R86,974 (35%)
Interest rate n/a 12.75%
Finance payment n/a R5,237pm
Maintenance provision Included R1,346pm
Insurance Included R1,346pm
Roadside assistance + tracker Included R120
Total monthly cost R8,044 R8,124

For the T-Roc, the cost breakdown is as follows:

T-Roc Design iLease Bank finance
Car price R586,600 R586,600
Contract period 48 months 48 months
Monthly mileage 2,500km 2,500km
Balloon payment n/a R205,310 (35%)
Interest rate n/a 12.75%
Finance payment n/a R12,363pm
Maintenance provision Included R1,515pm
Insurance Included R1,955pm
Roadside assistance + tracker Included R120
Total monthly cost R14,813 R16,071


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