David Jackson
Motor-vating: The National Credit Act opens the market to people who previously could not raise a deposit to buy a car. Picture: Robert Botha |
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‘Obligation is not only on the credit provider, but also on the consumer’
Ordinary people who were previously barred from leasing vehicles will now be able to do so, writes David Jackson.
The National Credit Act will have a significant impact on the manner in which some vehicles are financed, with a knock-on effect on car sales expected. This in turn is set to open up a new segment of the market for whom purchasing a motor vehicle was once beyond their immediate means.
Before the introduction of the National Credit Act, customers who were not entitled to a car allowance were not permitted by law to lease a vehicle. Leases were available only to private individuals with car allowances or to self-employed people or companies.
The privilege of being able to enter such a lease agreement entitled these parties to purchase a vehicle without putting down a deposit — and to certain tax deductions. More…
