Standard Bank Instalment Sale

Comparison Overview:

• Product: Instalment Sale
• Repayment Period: up to 60 months
• Max Finance Available: not specified
• Min Finance Available: not specified
• Interest: linked to standard bank prime rate, market rates or fixed
• Balloon Payment Yes/No: Yes
• Minimum Requirement: Preference to be a Standard Bank approved dealer or the private seller must bank with Standard Bank.

Product Overview

The Standard Bank Instalment Sale allows you to buy vehicles and other assets, and pay for them over an agreed period of time. Ownership will pass to you automatically once you have made the final payment.

Features and Benefits

• Deposits are negotiable.
• Balloon payments can be structured into the agreement.
• You can finance the vehicle over a maximum period of 60 months.
• Standard Bank owns the asset during the term of the finance agreement; ownership is passed to you automatically once you have repaid Standard Bank in full.
• You can trade-in the asset once you have repaid Standard bank in full.
• Market-related interest rates apply, which may be linked to the prime lending rate or fixed.
• You are required to have the asset comprehensively insured for the period of the contract.
• VAT is capitalised into the principal debt or paid on commencement of the agreement as an initial payment. Your copy of the agreement can be used as a VAT invoice, if you are able to claim an input tax.
• There are no VAT implications on early settlement.
• The asset should be capitalised according to the General Accepted Accounting Practice (GAAP) and the liability reflected on your balance sheet.

Standard Bank Financial Lease

Comparison Overview:

• Product: Financial Lease
• Repayment Period: up to 60 months
• Max Finance Available: not specified
• Min Finance Available: not specified
• Interest: linked to standard bank prime rate, market rates or fixed
• Balloon Payment Yes/No: Yes
• Minimum Requirement: Preference to be a Standard Bank approved dealer or the private seller must bank with Standard Bank.

Product Overview

The Standard Bank Financial Lease facility gives you the use of an asset while you are paying for it over the agreed term. Ownership does not pass to you automatically but is one of the options available to you at the end of the contract.

Features and Benefits

• Deposits are negotiable.
• Balloon payments can be structured into the agreement.
• You can finance the vehicle over a maximum period of 60 months.
• Standard Bank owns the asset. Once all payments have been made, you may return the asset to them, negotiate to become the legal owner, or renew the contract at an annual rental.
• Flexible payment structures can be negotiated.
• Market-related interest rates apply, which may be linked to the prime lending rate or fixed.
• You are required to have the asset comprehensively insured for the period of the contract.
• Lease payments are tax deductible. If an input credit has been claimed in respect of VAT paid, tax deductions will be limited to lease payments, excluding VAT.
• VAT is capitalised into the principal debt or paid on commencement of the agreement as an initial payment. Your copy of the agreement can be used as a VAT invoice, if you are able to claim an input tax.
• There are no VAT implications at the end of the agreement period, unless you enter into a new rental agreement. In this case VAT will be levied on each rental.
• The asset should be capitalised according to the General Accepted Accounting Practice (GAAP) and the liability reflected on your balance sheet.

Standard Bank Full Maintenance Lease

Comparison Overview:

• Product: Financial Lease
• Repayment Period: up to 60 months
• Max Finance Available: not specified
• Min Finance Available: not specified
• Interest: monthly rental linked to prime rate
• Balloon Payment Yes/No: No
• Minimum Requirement: The facility is available to you if you use the vehicle for business purposes, a maximum finance period of 60 months applies, and you are not required to pay a deposit. Standard Bank owns the vehicle, at the end of the agreement you return it to us or negotiate to become the legal owner. You are required to have the vehicle comprehensively insured for the period of the contract.

Product Overview

The Standard Bank Full Maintenance Lease is a comprehensive financial and maintenance package. It allows you to outsource the administration and maintenance of your vehicles to Standard Bank Fleet Management. It is a simple way of acquiring vehicles at a fixed monthly cost. A Full Maintenance Lease is offered to corporate and commercial customers.

Features and Benefits

• The facility is available to you if you use the vehicle for business purposes, a maximum period of 60 months applies, and you are not required to pay a deposit.
• Standard Bank Fleet Management will source and buy the vehicle on your behalf.
• The repayments are based on the period of the agreement and estimated distance to be travelled.
• Repayments are adjusted if the average monthly distances travelled change by more than 10% from the estimated distance agreed upfront, or you could be charged an excess amount at the end of the contract.
• Monthly rentals, not interest rates, are quoted and are subject to variations in the prime lending rate.
• You are required to have the asset comprehensively insured for the period of the contract.
• VAT is not capitalised upfront, but is payable on each rental.
• Payments include VAT and are tax deductible. However, where you have claimed an input credit for VAT paid in respect of the rental, tax deductions will be limited to rentals, excluding VAT.
• The asset is not reflected on your balance sheet. The rental is, however, shown as an expense on your income statement.
• On termination of the agreement, the vehicle is returned to Standard Bank, so there are no tax implications.

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