Renting from Ariva
We offer various contract periods, based on vehicle type:
- New and Used Passenger Vehicle: Up to 60 Months
Our contract period is shorter than the average traditional finance since research has shown that the majority of clients trade their vehicles in for a new model before the end of their finance term.
Financing from a Bank
Banks offer different contract periods, yet the majority of clients opt for a 60 or 72 months contract (5 – 6 years).
- Longer contract periods equal more interest that leads to increased total cost of ownership.
- If you trade your vehicle in early, you may have to ‘pay in as the “break-even” point (where the vehicle is worth more than what you owe the bank) is also extended.
Ownership only passes at the end of the contract period meaning the bank owns your vehicle until the last instalment is paid.
Renting from Ariva
There’s no balloon payment if you rent a vehicle from Ariva.
When the contract period ends, you simply hand the car back, with no extra costs.
Financing from a Bank
If your payment plan includes a balloon payment, you will have to pay a large lump sum amount (up to 30% of original vehicle cost) at the end of the contract period to take ownership of the vehicle.
With a balloon payment you are paying off less capital each month and consequently paying more interest.
Customers often need to refinance this balloon payment meaning that you continue to pay a monthly instalment with interest until the balloon payment is paid off (usually another 2 years).
A balloon payment significantly increases your total cost of ownership.
Ariva vehicles are comprehensively insured against accident, theft, fire and third party claims.
No extra monthly insurance costs.
Insurance is included and costed on a fleet basis allowing for the best possible hassle free insurance.
You have to negotiate with insurance companies to get the best monthly premium.
Insurance companies will determine your insurance premium by considering a number of factors:
- Your age.
- Where you live.
- Type of job you have.
- The period you have had your driver’s license.
Your insurance premium is not fixed and is likely to increase every year, especially if you’ve claimed against your policy.
Our clients carry no depreciation risk.
Simply hand the vehicle back to us at the end of the contract. The hassle and trade-in valuation risk lies with us.
All cars depreciate, some more than others.
Research has shown that after 5 years your vehicle will (on average) be worth 35% – 45% of the original retail price.
Depreciation on your vehicle is also negatively affected by:
- Excessive kilometres.
- Poor physical condition.
- Launch of new vehicle models.
- Accident damage (even if repaired).
- Not servicing regularly or at an approved dealer.
When you rent a vehicle from us you don’t have any trade-in or resale risk. At the end of your renting contract you simply return the car to us.
We assume full responsibility for the vehicle’s trade-in valuation risk as well as the hassle of disposal.
With a dealership trade-in there’s usually little room to negotiate as the dealer is bound to use a stipulated value to determine the trade-in.
Selling your car privately has other risks:
- Potential claims by the purchaser for defects not disclosed.
- Paperwork and administration incl. licensing, roadworthy- and police clearance etc.
- Security factor of having to deal with a large number of potential buyers (visits at home, test drives, etc.).
With us, most of your service and/or maintenance needs are provided for, for the full duration of your rent contract.
We offer two products to suit your needs:
- Ariva Lite: Covers the required services for the vehicle.
- Ariva Premium: Covers the required services plus maintenance work and tyres for the vehicle.
Ariva removes the hassle and nasty surprises from unplanned service or maintenance work required.
Ariva also offers a 24/7 roadside assistance benefit at no extra cost.
Without a maintenance/service plan, related costs will be your responsibility.
Being responsible for vehicle servicing costs exposes you to parts and labour rate inflation over the life of the contract.
Delaying servicing due to budget restraints may negatively impact the vehicle’s value and safety.
Some vehicles come with service or maintenance plans ‘built-in’ however these tend to only cover you for 2 to 3 years, leaving you at risk for the balance of your contract.
We offer you all the benefits of ownership without the associated risks.
Renting is a cost-effective alternative to ownership generally delivering an overall lower total cost of motoring.
At the end of the contract period you simply hand the vehicle back to us. We even give you a bonus reward and return your refundable deposit with interest if you return the vehicle in good condition.
We’ll consider upgrading your vehicle after 24 months, should you qualify.
With us you get to drive a new car more often.
Inflation, interest rate fluctuations, forever-increasing insurance premiums and of course unexpected maintenance bills can all increase your total cost of ownership.
Ownership only passes to the customer once you have paid the bank the final instalment. The bank therefore actually owns your car until you settle your debt.
The majority of instalment sale clients trade their vehicles in after only 38 months, meaning that they never actually own the vehicle.
While during the contractfinancing period, the bank legally owns your car, yet the the costs and risks of ownership remain with the customer. So you have the risks of ownership, but not actual ownership of the car.
With Ariva, most of your motoring expenses are included in the monthly payment for the life of the contract.
Select between 2 product options according to your budget and cash flow.
Your payment is fixed. No need to worry about the impact of inflation, interest rate fluctuations or resale value risks.
No hidden costs or unexpected servicing bills with us, so you can always budget accurately.
You need to make provision for all current and future motoring expenses such as:
- Roadside Assistance
- Tyre Replacement
- Tracking Devices
Most costs associated with motoring are negatively impacted by inflation.
Unexpected costs associated with breakdowns and unscheduled maintenance can really hurt your budget.