Financial Services – Suzuki is a Japanese multinational corporation which has for ages now become a part of people’s lives. With a business footprint that extends across the globe, Suzuki has also established a strong business presence in South Africa. In order to efficiently service its growing market, Suzuki has developed products and services which have enhanced its market and business reputation. Some of the products which have come out of Suzuki include the instalment sale and the full maintenance rental which are all under the Mobility finance.
The instalment sale agreement product allows a client to buy a vehicle by paying instalments over a period of time. These repayment periods may run from 12 to 60 months or even longer but the client is also allowed to structure an instalment sale with a balloon payment which has the net effect of reducing monthly repayment. Interest rates are calculated at either fixed or prime linked rates. The benefits of using the instalment sale agreement are that the client owns the goods after paying the full amount, if the asset is used for business purposes, a client can claim depreciation and yearly interest paid against tax, initial deposits are not required depending upon current legislation and a client’s credit profile, the client also enjoys the benefit of any resale value.
The mobility finance maintenance rental agreement is similar to a normal rental agreement except it includes vehicle maintenance which implies that it’s the clients responsibility to ensure that the vehicle is kept in good condition, fully maintained and driven within agreed kilometer restrictions. If the agreed kilometers are exceeded, the client is required to pay for the additional usage. Under this agreement, the vehicle is handed back at the end of the rental period and ownership is not automatic. Under this agreement, interest is calculated at either fixed or prime-linked rates. VAT is also charged on a monthly basis and not on the full purchase price at inception. The benefits of this agreement normally accrue if the vehicle is being used for business purposes or generation of income. General benefits of this agreement include the fact that you don’t need to own the asset to use it, you avoid tying up working capital at any stage, stepped payments, inflated rentals and other structures can be tailored to your needs, the initial deposit and repayment period can be negotiated to suit your requirements and clients can have the luxury of driving a new and different vehicle more often.
Suzuki has indeed brought vehicle ownership closer to many people in South Africa. Suzuki can be contacted on 0114762333 and clients will be provided with the necessary assistance and information regarding Suzuki products and services.