WhyBuyCars – Leasing: The upside of Covid-19
The Covid-19 pandemic and subsequent lockdown ravaged the economy and closed or threatened countless businesses, but as with all setbacks, there are always positives to be found.
One of the things that lockdown has revealed is that innovation can take over where convention fails. Where people were used to doing things in a certain way – like shopping, work and commuting – the experience of lockdown showed that there are very viable alternatives that can be better than what we perceived to be the only option. People who had never shopped online now order all their necessities via websites. Workers who thought that they had to be at the office in order to function are now even more productive from home.
The same can be said of what we perceived to be the norm when it comes to car ownership and the use of a vehicle on a daily basis. Owning a car during lockdown became a grudge expense. After all, it meant maintaining a depreciating asset that attracted interest-based, monthly payments despite not being used or used less. Added to that was the fact that cash was tied up in a R500 000+ vehicle that was losing value and couldn’t provide any benefit during tough economic conditions.
Of course, there is a need to use a car for work or leisure. The lack of reliable forms of public transport makes it a necessity, but why is there a belief that we all need to own a car?
Ownership means that, unless you have the cash to purchase a vehicle, you’re locking yourself into a long-term commitment that sees a car being paid off at a higher overall price. Factoring in maintenance and insurance and potential for loss, theft, or damage and suddenly owning a car accounts for a substantial portion of any salary. While financing a car may not be a financially lucrative or smart decision, it is a necessary one, according to traditional thinking. Or at least, it’s necessary in the absence of any other options.
But there is another option that makes more sense in this market and during these trying times – leasing. The term ‘leasing’ is one that is largely unheard of in the market. And even if it is, there are negative associations attached, such as high rates, increased risk and a certain degree of inflexibility in the terms of the lease agreement. With the launch of WhyBuyCars, the concept of leasing is being redefined for the South African market.
WhyBuyCars – a brand launched in May 2020 during the hard lockdown – offers a range of vehicles a minimum of three months at a time for an inclusive rate that covers everything from insurance to taxes. The short-term lease doesn’t require a deposit nor any type of credit rating – which is often a barrier to car finance.
Punted as “the better way to have a car”, WhyBuyCars has backed up the claim with more than 15 000 applications since beginning, that are questioning whether owning a vehicle provides any long-term benefit other than its use.
In a volatile economy, WhyBuyCars offers an alternative that doesn’t lock the driver into an agreement that spans years, but rather lets you maintain control of your finances. The user can budget over shorter periods of time and upgrade or downgrade the type of vehicle they’re using without the hassle of selling or trading, or a new finance deal. With no escalation within the period, the deal isn’t linked to interest rates and buy-back or usage clauses that have an effect of maintenance plans and insurance.
WhyBuyCars doesn’t make you jump through hoops to get your keys – the entire process, from application submission to collection of a vehicle – can all be done online and within 24 hours. From as little as R4500 per month, the argument is a compelling one for any driver or existing car owner looking for a little freedom in how they consider not only the complications of finance, but all the administration that comes with owning and maintaining a vehicle.
For more information on WhyBuyCars offering, visit www.whybuycars.co.za