What are those R699 cars really about?
As a frequent commuter, you may have noticed a lot of cars with advertising that say “New car from R699 p/m”. A lot of people might be skeptical about this, and just drive on. I mean what kind of car will you get for that amount per month right?
Well, it’s not catch, you actually can drive a car for R699 per month. There are, however, some alternative terms and conditions involved. As soon as people hear that they normally run away. You might think it’s a scam or that there is a huge residual involved that the dealer isn’t telling you about. Like we said, there is no scam involved, but it is different than other car deals… and we are going to clear all that up for you today.
There is a ‘’scheme’’ that is involved, which allows one to drive a car from R499 and up per month. This price also depends on current offers, availability and the vehicle you drive (be it a Chery or a Honda). This deal is basically made up of an innovative marketing strategy. In short, every client that purchases a new vehicle from one of the outlets will be offered an opportunity to act as an advertising service provider. This advertising agreement consists of two options and is linked to the finance period of the vehicle purchased. You earn money with advertising, and therefore you don’t pay as much as you normally would for that car.
Firstly, the qualifications are:
The applicant must earn a net income of at least R5500 a month
The driver must not be blacklisted
The driver must own a valid driver’s licence
The scheme is aimed at people who drive 1500-2000km a month.
Secondly, the two types of deals available are?
The ‘Earn while you own‘ option has a minimum qualification mileage of 500km’s. As you have to drive with the advertising on your car, you will be an indirect seller. You will be rewarded for any vehicle sold from the unique code displayed on your car. The unique code is a unique identifier code that links the vehicle advertisement to the owner of the vehicle. For every referral that buys a car you earn R3000.
The client is expected to submit two pics. The 1st photo must display the odometer proving that a minimum of 500km’s have been travelled. The second photo must be of the rear of the vehicle ensuring that the advertising material is still in good condition. If you put some time and effort into this, it can result in you driving your car for free.
The ‘Earn while you drive‘ option involves the client or advertising service provider, being rewarded on a kilometre exposure rate. This rate varies on a sliding scale depending on the monthly kilometers travelled. The advertising fee is calculated as a percentage of the repayment amount of the car. If you drive more than 2000 km’s per month you will receive 100% of the advertising fee. Any distance travelled between 1500 – 2000 km’s will ensure 95% of the fee and so on. In order to claim the fee you must provide the necessary proof that the marketing material is in good condition and that the car it is displayed on has no accident damage. This proof must be in the form of five digital photos displaying a digital date, uploaded onto the web portal.
As you can see there is some effort involved and it’s not just a car for really cheap. But, at the end of the day it isn’t a scam and some of these cars do have residuals or deposits- it all depends on the deal you comply to with the dealer and how well you advertise. A lot of people are really keen on their car and have said it all works out, while others have opted out. If you need more info, go check out the current deals on the website.