Article originally appeared on the citizen.co.za
If you live in or around Cape Town and need R40,000 or more and need it fast, then consider DriveAwaySA.
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.
DriveAwaySA does 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.
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.
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.
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