Installment Sale Agreements

With instalment sale agreements, you pay for the depreciation of the vehicle while you use it. At the end of the lease, you can purchase the vehicle or simply return it.

An instalment sale agreement presents a direct method for financing your vehicle while ultimately securing ownership. Here's a breakdown of how it operates:

Ownership During Payment:

• Under an instalment sale agreement, you experience the satisfaction of owning your vehicle while still making payments.
• Unlike leasing, where ownership only transfers at the lease term's end, this agreement grants you full ownership as you steadily pay off the debt.

Flexible Conditions:

• Financing durations range from 12 to 72 months, tailored to your requirements.
• You can opt for either a fixed or variable interest rate tied to the prime lending rate.
• No minimum deposit is obligatory, contingent upon credit evaluation.

Advantages:

• Absolute Ownership: Upon completion of payments, ownership seamlessly transitions to you, providing full ownership of the asset.
• Tax Benefits: If the vehicle serves business purposes or is acquired by your company, you may utilise depreciation and annual interest payments as tax deductions.
• Resale Value: You stand to gain from any resale value retained by the vehicle.

VAT Incorporation:

• The Value Added Tax (VAT) is integrated upfront into the principal debt within the finance agreement.

Remember to select terms that harmonise with your financial objectives and embark on your journey with your new vehicle!