ALEX Jochheim, marketing manager from Drive Africa wishes to clarify the above-mentioned article.
"We sell a Volkswagen Golf to a client for R20 000 (on a three month buy-back deal) and add a fully comprehensive insurance which, for three months would cost R1 050 - depending on the type and age of the vehicle in relation to the purchase price, an additional R450 is paid for all the paperwork to license the vehicle in the client's name (including the roadworthy test).
Drive Africa guarantees to buy back the vehicle for R15 000, once the three months have expired.
The Rental Purchase contract requires a small service to be done after 5 000 kilometres and a major service to be done at 10 000 kilometres. Any damages or services not done will be subtracted from the pre-determined buy-back price."
The purchase of the vehicle is thus:
R20 000 purchase
R1 050 comprehensive insurance
R450 registration fee
Total = R21 500
Buy-back price R15 000, the difference would therefore be R6 500.
