DriveAwaySA provides clients in Cape Town, Western Cape, with the means to tap into the embedded value of vehicles they own outright, allowing them to free up cash flow whilst still providing them with the opportunity to continue driving their or other vehicles.
Typically, aside from owning a home, the most valuable asset people own in South Africa is their vehicle. Once the finance on a vehicle has been settled, the only means for an owner to access the cash value of their vehicle would be to sell it privately or into the trade. Doing so typically resolves a cashflow issue but, unless the vehicle is sold to facilitate the purchase of another vehicle, it also leaves the former vehicle owner with a transport issue.
DriveAway’s offering provides vehicle owners with a solution that addresses their cash flow requirements, whilst allowing them to continue driving their own or another vehicle.
DriveAwaySAdoes not provide loans. DriveAwaySA acts as an agent for a few companies that buy cars and other vehicles. If you own your car outright (in other words, you cannot owe any money to a bank or anyone else on the vehicle), we arrange for your car to be sold to one of these buyers at a market related price and for the purchase price to be paid over to you.
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We have leasing agreements with these buyers in terms of which we lease vehicles from them for our own vehicle renting business. This means that you could then, if you so wish, rent a vehicle from us (at rate similar to, and often times less than, market related long terms vehicle rental rates) – which could either be your own vehicle that you have just sold, or any of the other vehicles we have available for rental.
If you do choose to rent a vehicle and you think you might want to buy that vehicle at some stage in the future, we can arrange that the buyer offers it for sale to you first, for a limited period of time, at the end of the rental period. If you choose not to buy the vehicle at the end of the rental period, the vehicle can either be rented by us to someone else or can be sold by the buyer to someone else.
Unfortunately, there is a history in South Africa of some pawn brokers and loan providers advertising and offering “pawn your car and drive it” type products that are both predatory in nature and that contravene the National Credit Act, making them illegal. These unlawful loans focus on attracting people searching online for pawn loans, bad credit loans, loans with no credit check, no credit check loans, cash loans and the like.
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They target individuals who are financially challenged with bad credit scores, that are blacklisted and/or have judgements against them, which makes it extremely difficult (if not impossible) for them to access traditional credit products such as personal loans or credit cards. Using their clients’ vehicle as collateral, they will loan their clients an amount that is more often than not a fraction of the value of their vehicle and they charge exorbitant interest rates and fees against the money advanced to the client. There is little, if any, chance that their clients can afford the repayment costs and they take full advantage of their clients’ financial predicament.
In contrast, DriveAwaySA is not a credit provider and it does not provide pawn loans or any other type of loans. Our product is structured so that we can lawfully and responsibly allow clients to access the funds that they need for whatever reason, by facilitating the sale of the vehicle they own and providing them with an option to rent their former or another vehicle so they can put the money they need in their pocket and DriveAway.
If you are interested in receiving a call back from us, please complete the contact request form.
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So I basically loan money from you using my car as security?
Not at all! The buyer will actually purchase your vehicle, and ownership of the vehicle will be transferred to the buyer. At no stage does the buyer lend you any money.
You are also not obliged to rent either your own or any other vehicle from us, and it is entirely your choice if you wish to do so.
What requirements do I have to meet to do this?
Well, in order for the vehicle to be sold to the buyer, you have to own the vehicle and the vehicle must be fully paid off (in other words, you cannot owe any money to a bank or anyone else on the vehicle, as you will not be able to sell it to the buyer if you do).
You will obviously need to provide us with the papers for the car, your identity document, your proof of residence, proof of bank account and some other information.
Because this is not a loan, there is no affordability assessment that you need to go through, and we also do not do a credit check on you.
We will need to assess the vehicle for damage and required repairs.
So what sort of price would I get for my car?
Assuming that the vehicle is in a roadworthy condition, you could expect to get the market value (in other words, the value that your car would sell for on the open market) of your vehicle.
The price would be adjusted to:
There is also an origination fee of R2,500 which is payable by you to the buyer upfront, and this is usually just deducted off the purchase price.
Yes, but then what amount could I expect to pay to rent my vehicle back from you?
Our rentals are generally cheaper than if you were to rent a vehicle from a rental company such as Avis or Europcar.
The rentals are generally calculated taking into account the type of vehicle, the age of the vehicle, mileage and the book value of the vehicle.
The rental amount will also include:
We would quote you a rental amount before you sign any documents to ensure that you are happy with all of the elements of the sale and/or the rental.
We will give you at least one month’s notice of any increase to the monthly rental amount, and this will not happen more than once a year.
Are there any other hidden costs which I should know about?
Well, you will have to pay all e-tolls, fines, traffic infringements or other penalties charged while you rent the vehicle, and you will also have to pay the insurance excess if the vehicle is involved in an accident while you are renting it.
Any costs of operating the vehicle are also for your account – such as fuel, oil, tyres, etc. for the period that you rent the vehicle.
Administration fees can be levied by us if a payment bounces or if we have to make any payments or do any of the things that you are responsible for under the rental agreement (such as pay your speeding fines, etc.)
These amounts are obviously not included in your monthly rental amount and are therefore payable by you as and when they arise.
If you default under the rental agreement, you will also be liable for our legal costs to enforce the agreement.
How long will I need to rent the vehicle for?
The rental runs on a month-to-month basis, and you are not tied into any minimum period.
At the end of each month, you can either return the vehicle to us or rent the vehicle for another month by paying the rental for the next month to us.
If I want to buy my vehicle back at the end of the rental period, what could I expect to pay for the vehicle?
The vehicle price will again depend on the market value of the vehicle at that time, the condition of the vehicle, the age of the vehicle, etc. You could expect the vehicle to be sold back to you at as close to the market value of the vehicle as possible. The vehicle purchase price will be clearly indicated on the contract
What happens if I decide not to buy my rental vehicle at the end of the rental period?
The vehicle can either be rented by us to another party, or it can be sold by the buyer to a third party.
So how quickly can this all happen?
Typically within 24-48 hours from the time you bring your vehicle to us for the inspection.
If repairs are required to bring the car up to roadworthy standards, a repair consent form will need to be signed in addition to the offer to purchase and lease agreement. The purchase price will be transferred to you and as soon as the vehicle repairs are completed and the lease amount is paid by you, you can DriveAway.
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For more information please visit our website or office in Cape Town, www.driveawaysa.co.za
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