The Bidvest Instalment Sale Agreement is a great choice ff you receive a car allowance, want to finance a vehicle over 60 months or more, and want ownership at the end of the period, the vehicle Instalment Sale Agreement option is most suitable for you. If your credit rating allows, you may elect to structure a balloon payment into your repayment plan in order to reduce the monthly instalments.
This finance option is best for those who want a longer finance period and/or would like ownership of the vehicle. Tax treatment includes that SARS allows for the deduction of finance charges and wear and tear at 20% per annum against travel allowance income. This is only an option applicable to travel allowance receivers and business’. Ownership automatically passes on receipt of final payment.
Benefits
Monthly repayments can be reduced by structuring in a balloon payment.
Bidvest Financial Lease Agreement
Comparison Overview:
Product: Financial Lease
Repayment Period: up to 72 months
Max Finance Available: not specified
Min Finance Available: not specified
Interest: linked to Bidvest prime rate
Balloon Payment Yes/No: Yes
Minimum Requirement: not specified
Product Overview
The Bidvest Financial Lease Agreement lets you finance the car for a period of less than 60 months. It’s ideal if you’re a car allowance receiver paying a deposit or including a balloon payment in the finance plan. You may elect to take ownership at the end of the car lease contract after making the final payment. SARS allows for the deduction of the monthly payment (including a balloon payment) against travel allowance income. This is only an option applicable to travel allowance receivers and business’.
Benefits
Monthly repayments can be reduced by structuring in a balloon payment.
Bidvest Operating Rental
Comparison Overview:
Product: Financial Lease
Repayment Period: up to 60 months
Max Finance Available: not specified
Min Finance Available: not specified
Interest: linked to Bidvest prime rate
Balloon Payment Yes/No: No
Minimum Requirement: not specified
Product Overview
The Bidvest Operating Rental Agreement is the ideal option if you receive a travel allowance and want to use the vehicle for a specific period of time and distance, without the ownership of a depreciating asset. It's much like hiring a car for an extended period of time. SARS allows for the deduction of the monthly payment (including a balloon payment) against travel allowance income. This is only an option applicable to travel allowance receivers and business’.
Benefits
The Operating Rental generally provides the lowest cash outflow and the lowest risk:
You are able to fix all motoring costs with the exception of fuel expenses, assuming that the prime interest rate remains unchanged
You only pay for the portion of depreciation that you agree to use
VAT is not included in the purchase price and you only pay VAT on the portion you use
There is no risk of lower market resale value since you don’t own the vehicle
An operating rental agreement includes a residual value (guaranteed resale value) held by Bidvest Bank, thereby reducing the monthly rental payable
You may elect to attach or ‘bolt on’ a maintenance contract to further eliminate any risk such as unforeseen repair bills
Ownership is possible but not obligatory, by settling the remaining capital including the residual value
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