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
DriveAwaySAdoes 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
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.
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.
If you are interested in receiving a call
back from us, please complete the contact request form
Some Frequently Asked
- So I basically loan money
from you using my car as security?
Not at all! The buyer will actually purchase your vehicle, and ownership of the vehicle will
be transferred to the buyer. At no stage does the buyer lend you any money.
You are also not obliged to rent either your own or any
other vehicle from us, and it is entirely your choice if you wish to do so.
- What requirements do I have
to meet to do this?
Well, in order for the vehicle to be sold to the buyer,
you have to own the vehicle and the vehicle must be fully paid off (in other
words, you cannot owe any money to a bank or anyone else on the vehicle, as you
will not be able to sell it to the buyer if you do).
You will obviously need to provide us with the papers
for the car, your identity document, your proof of residence, proof of bank
account and some other information.
Because this is not a loan, there is no affordability
assessment that you need to go through, and we also do not do a credit check on
We will need to assess the vehicle for damage and
- So what sort of price would
I get for my car?
Assuming that the vehicle is in a roadworthy condition,
you could expect to get the market value (in other words, the value that your
car would sell for on the open market) of your vehicle.
The price would be adjusted to:
- settle any outstanding fines on
the vehicle; and
- undertake any repairs which
might be necessary to make the vehicle roadworthy.
There is also an
origination fee of R2,500 which is payable by you to the buyer up front, and
this is usually just deducted off the purchase price.
- Yes, but then what amount
could I expect to pay to rent my vehicle back from you?
Our rentals are generally cheaper than if you were to
rent a vehicle from a rental company such as Avis or Europcar.
The rentals are generally calculated taking into account
the type of vehicle, the age of the vehicle, mileage and the book value of the
The rental amount will also include:
- insurance on the vehicle
- tracking costs (the vehicle
will be fitted with a tracking device)
We would quote
you a rental amount before you sign any documents to ensure that you are happy
with all of the elements of the sale and/or the rental.
We will give you at least one month’s notice of any
increase to the monthly rental amount, and this will not happen more than once
- Are there any other hidden
costs which I should know about?
Well, you will have to pay all e-tolls, fines, traffic
infringements or other penalties charged while you rent the vehicle, and you
will also have to pay the insurance excess if the vehicle is involved in an
accident while you are renting it.
Any costs of operating the vehicle are also for your account – such
as fuel, oil, tyres, etc. for the period that you rent the vehicle.
fees can be levied by us if a payment bounces or if we have to make any
payments or do any of the things that you are responsible for under the rental
agreement (such as pay your speeding fines, etc.)
These amounts are obviously not included in your monthly
rental amount and are therefore payable by you as and when they arise.
If you default under the rental agreement, you will also
be liable for our legal costs to enforce the agreement.
- How long will I need to
rent the vehicle for?
The rental runs on a month to month basis, and you are
not tied into any minimum period.
At the end of each month, you can either return the
vehicle to us or rent the vehicle for another month by paying the rental for
the next month to us.
- If I want to buy my vehicle back at the end of the rental period,
what could I expect to pay for the vehicle?
The vehicle price will again depend on the market value
of the vehicle at that time, the condition of the vehicle, the age of the
vehicle, etc. You could expect the vehicle to be sold back to you at as close
to the market value of the vehicle as possible. The vehicle purchase price will be clearly
indicated on the contract
- What happens if I decide
not to buy my rental vehicle at the end of the rental period?
The vehicle can either be rented by us to another party,
or it can be sold by the buyer to a third party.
- So how quickly can this all
Typically within 24-48 from the time you bring your
vehicle to us for the inspection.
If repairs are required to bring the car up to roadworthy standards, a repair consent form will need to be signed in addition to the offer to purchase and lease agreement. The purchase price will be transferred to you and as soon as the vehicle repairs are completed and the lease amount is paid by you, you can DriveAway.
Our Easy Step by Step
- Complete the contact request form on our website
- Receive call back from DriveAwaySA
- Schedule an appointment with us at our office
- At the appointed date and time, bring your vehicle and present us with the following documentation:
- Copy of your ID document (SA ID, Passport, Traffic Register No. if non-citizen)
- Original RC1 (Vehicle ownership document proving you are Owner and Titleholder)
- Proof of Address
- Proof of Banking (minimum 3 months bank statements)
- Driver’s License
- Conduct Vehicle Assessment and Valuation
- Effect Vehicle Repairs (if necessary)
- Fitment of Tracking Unit
- Presentation of Offer to Purchase and Lease Agreement
- Sign Purchase Agreement
- Sign Lease Agreement
- Electronic Funds Transfer of purchase price to client
- Electronic Funds Transfer of Lease Amount to DriveAwaySA
more information please visit our website or office in Cape Town www.driveawaysa.co.za