Leasing VS Financing

Leasing is the smart choice!

What makes leasing
A cost-effective alternative to owning?

Owning a vehicle through traditional instalment sales agreement and bank financing often leads to unexpected costs later on. These costs include inflation of insurance premiums, increased interest rates, exorbitant insurance excesses, service bills, high or unexpected maintenance and depreciation of the vehicle value. In fact, a vehicle will be the biggest depreciating asset you will ever own. These unplanned costs can negatively affect your monthly or even yearly budget and land you in a tight spot from time to time. With Ariva’s private vehicle leasing solutions you can avoid all of these hidden costs/risks and only pay the amount agreed upon each month.

With short or long-term vehicle leasing you do not need to worry about the value of your vehicle depreciating or about trade-in or resale value.

At the end of your contract term you simply hand the leased vehicle back to us, unlike traditional finance houses who pass on the inflated balloon payments at the end of the contract to the customer. These outstanding balloon payments often exceed the fair market value of the vehicle, restricting the ability of the customer to either trade the vehicle in, or sell without having to cover a short fall in the settlement to the bank. In some cases, the customer has to refinance this balloon payment and drive the vehicle for even longer, sometimes up to 8 years.

SEE THE

BENEFITS!

 

With an Ariva Lease:

There is no balloon payment. When the contract period ends, you simply hand the car back.

With traditional finance methods:

  • You are liable for any balloon payment (lump sum) which might become payable at the end of the finance term and,
  • Since the loading of a balloon payment into your finance agreement results in a slower reduction of the amount outstanding to the finance company over the term of the agreement you may find you owe the finance company more than the sales value of the vehicle when you wish to sell it

With an Ariva Lease:

You do not have the responsibility of selling the vehicle nor the inherent problems which come with disposal- we worry about that

With traditional finance methods:

Selling the vehicle becomes your problem which are often made worse because you own a depreciating asset which depreciates in value month by month and with it the need to

  • Realise sufficient value to settle the finance company (often a problem)
  • Negotiate with potential private buyers and with it the risk of
    • Fraud
    • Potential claims by the buyer for defects not disclosed.
    • Paperwork and administration incl. licensing, roadworthiness and police clearance etc.
    • Having to deal with a large number of potential buyers (visits at home, test drives, etc.)

With an Ariva Lease:

You can change your vehicle every 36 months, ensuring you get the opportunity to drive and enjoy the new vehicle makes and models, without worrying about the depreciating value of the vehicle- its not your problem

With traditional finance methods:

  • You are often locked into a contract which may extend for 60 months or  more and with it an inability to sell the vehicle and realise enough value to settle the finance house
  • You do not have an asset but a depreciating liability whose value reduces month by month and year by year.

With an Ariva Lease:

Your vehicle has comprehensive theft and accident protection and the cost thereof is included in the monthly payment. The management of any claims under this process is undertaken by Ariva and its partners throughout the term of the agreement.

With traditional finance methods:

  • You have the nightmare of having to negotiate and arrange with various insurance companies for the best cover and market related premium
  • Premiums are typically subject to regular annual increases

With an Ariva Lease:

Your vehicle is covered for all necessary vehicle services during the term of the agreement and maintenance cover, ensuring you do not have unexpected vehicle expenses during the life of the vehicle and your vehicle remains fully maintained and unlikely to break down

With traditional finance methods:

  • When you own a vehicle without a maintenance or service plan, all related costs will be your responsibility. Being responsible for vehicle servicing costs exposes you to parts and labour rate inflation over the life of the contract.
  • Delaying servicing due to budget restraints may negatively impact the vehicle’s value and safety.
  • Some vehicles come with service or maintenance plans ‘built-in’ however these tend to only cover you for 2 to 3 years, leaving you at risk for the balance of your contract.

With an Ariva Lease:

You receive full Roadside assistance for the duration of the contract ensuring you, your family members and your vehicle is protected from unexpected break downs and the like

Roadside Assistance covers:

  • Towing your vehicle to safety
  • Fuel top up if you accidentally run out of fuel
  • Jump start service (flat battery)
  • Message to your family member if needed
  • Key Lockout service
  • Car rental or overnight accommodation

With traditional finance methods:

A service of this nature needs to be arranged by yourself and you will be charged an additional monthly cost

With an Ariva Lease:

Your vehicle has a tracking device fitted to the vehicle protecting you, your family and the vehicle from possible theft and also allowing you to receive information with regards to vehicle location, distances travelled and general usage

With traditional finance methods:

A service of this nature needs to be arranged by yourself and you will be charged an additional monthly cost