Why Lease

It is easy to convince yourself and others that buying a car is the way to go. If you plan to run a business, your capital should be invested into the business instead of spending it all on buying a car. A vehicle will be the biggest depreciating asset you’ll ever own from the initial costs and other unforeseen ones like high maintenance and service fees, which will negatively affect your monthly and yearly budget.

Even by going through traditional instalment sales agreement and bank financing, other costs to consider include inflation of insurance premiums, increased interest rates and exorbitant insurance excesses. These may mean that most of your money goes towards maintaining your vehicle, which makes no financial sense. That’s where leasing comes in.

• No lump sum payments. You can choose a premium payment that is comfortable for you so that you can use the rest of your money for other worthwhile investments.
• No risk. You’ll only be paying for usage as we handle all the risk that comes with vehicle maintenance.
• No stress. Leave the day-to-day worries about fleet management and administration from procurement to disposal to us, and focus on other important things.
• No limits. You can upgrade and replace to a newer model whenever you like.

Unlike traditional finance houses who pass on the inflated balloon payments to the customer at the end of the lease agreement contract, that’s not how we go about our business. This is because these outstanding balloon payments are often higher than the fair market value of the vehicle, which means that the customer goes at a loss should they decide to trade it in or sell.

At Magari Africa, there’s no need to worry about the trade-in or resale value of your vehicle depreciating with short or long-term vehicle leasing. Simply hand over the leased vehicle back to us after the leasing period expires.