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Nissan South Africa partners with WesBank for vehicle finance

vuyi on August 19, 2020

…we are excited for this collaboration to respond to our customer’s needs using digital innovative solutions.
– Nancy Moodley, Nissan South Africa’s Head of Customer Experience and Digital.

Johannesburg, South Africa (18 August, 2020) – Nissan South Africa has become the first vehicle manufacturer to launch a new intuitive digital application technology to assist customers when applying for vehicle finance online.

The Nissan pre-finance tool is powered by WesBank and allows customers to check their affordability by completing a pre-approval form before applying for finance. This tool is integrated into the bank’s engine.

Nissan is the first vehicle manufacturer in South Africa to offer pre-financial approval within their website which is linked to the credit bureau. The intelligence or algorithms built into the tool provides immediate confirmation of approval or declined status while allowing the customer the flexibility to structure their deal using balloon payments or deposits.

The process is seamless, convenient and quick. Removing the hassle of the full vehicle application process which is usually tedious and time consuming. Once the customer receives an approval, a reference number is issue with the full downloadable pdf. deal structure for the customer to utilize at their dealer once they are ready to purchase. Nissan continues to explore innovate solutions to ensure that the vehicle purchase process is seamless and simplified for their customers.

“As the first OEM to partner with WesBank, we are excited for this collaboration to respond to our customer’s needs using digital innovative solutions. The integration of WesBank’s digital application technology into our website will enhance Nissan and Nissan Finance’s offering to prospective Nissan vehicle owners,” says Nancy Moodley, Nissan South Africa’s Head of Customer Experience and Digital.

When developing this platform, our goal was to make the online journey of applying for vehicle finance a stress-free conversation
– Dane Reddy, WesBank’s Head of Digital

As the coronavirus creates significant challenges for the automotive industry, it has become more important than ever to use technology to deliver the full bouquet of virtual customer solutions including e-commerce. This impactful tool launched by WesBank and Nissan allows customers get car finance approval in minutes from the comfort of their mobile devices. The laborious and complicated process of applying for vehicle finance has now been simplified offering potential & current Nissan customers a tailor-made deal suited to their budget.

“When developing this platform, our goal was to make the online journey of applying for vehicle finance a stress-free conversation, not an interrogation, for our customers – simple as that. We ask the applicants to tell us a bit about themselves and the car they are interested in purchasing and in under 10 minutes, we can tell them whether they are approved for the requested vehicle financing or not. If not, we can offer them alternative options to fit their budget,” says Dane Reddy, WesBank’s Head of Digital.

Nissan recently introduced a host of digital services as part of its Shop@Home platform to make it easier for customers to interact with their products particularly during these times when we are observing best practice in managing COVID-19.

Understanding the Outstanding Debt Policy on your vehicle

vuyi on August 7, 2020

Customers are entitled to select the vehicle cover best suited to their needs and financial means
– Lebogang Gaoaketse, WesBank’s Head of Marketing and Communication.

The car-buying journey is certainly an exciting one. However, with the excitement, it is important to ensure that all the paperwork involved in the purchasing process is in order. One such element is making sure that the car is comprehensively insured, whether the car is financed or not. This is a vital safety net for you as the car owner.

Under the current economic circumstances and with extra budget pressures, vehicle owners might consider cancelling their vehicle insurance policy to save money. However, the risks involved in not having any form of vehicle insurance far outweigh the perceived short-term savings by either cancelling an existing policy or not taking it up in the first place.

If the vehicle is financed through an approved financial services provider, comprehensive insurance cover is a prerequisite and a contractual obligation. A customer is required to purchase and maintain comprehensive short-term insurance on the vehicle for the duration of the credit agreement. If a customer does not have comprehensive cover in place, WesBank can assist with temporary cover in the form of its Outstanding Debt Policy (ODP).

This type of insurance cover is limited, and does not provide cover for third-party liability. This means that the vehicle owner will be responsible, if found liable, for damage to another vehicle following a vehicle accident.

Without ODP or comprehensive vehicle insurance cover, the customer remains responsible for the outstanding balance on the finance agreement in the event of an accident, theft, or total loss. Total loss is where the vehicle is written off or stolen and not recovered.

This policy can be loaded onto your contract to protect you and your vehicle if proof of comprehensive insurance has not been provided to the bank, or if you have subsequently cancelled your insurance. The bank will put the ODP in place until such time as you are able to take out comprehensive cover once again. It must be noted that ODP is not comprehensive insurance and therefore it offers only limited vehicle insurance.

The insured amount will be equal to the vehicle settlement amount owed to WesBank, up to a maximum of R750 000 (seven hundred and fifty thousand rand) at the time of the incident. The monthly premium for this cover will depend on the amount outstanding on your finance agreement with WesBank. Your monthly instalment will increase because the ODP premium will be added to your monthly vehicle instalment amount.

“We encourage customers to communicate with us so we can understand their current financial position
– Lebogang Gaoaketse, WesBank’s Head of Marketing and Communication.

Customers who elect to sign up for the ODP limited insurance cover from WesBank will also benefit from two useful services: the CarLicence Renewal benefit is an SMS and email reminder sent 45 days prior to your vehicle licence’s renewal date, with a link to the WesBank renewal web page. The reminder also includes any outstanding fines or penalties owing on your vehicle, and CarLicence can arrange for the issuing and delivery of your new vehicle licence.

The second service you can access is Project HELP, a security and emergency medical service, that offers a state-of-the-art crisis management centre, armed reaction units, a panic button on your phone and location tracking.

“Customers are entitled to select the vehicle cover best suited to their needs and financial means. As a vehicle finance institution, we have a responsibility to educate and guide our customers through the process of purchasing and insuring a vehicle. While cancelling a vehicle insurance policy, or not insuring the vehicle at all, might seem an option during tough times, this choice could result in very expensive consequences for an uninsured owner in the unfortunate incident of an accident or total vehicle loss,” says Lebogang Gaoaketse, WesBank’s Head of Marketing and Communication.

“We encourage customers to communicate with us so we can understand their current financial position and offer an effective financial solution to ensure they are covered in the case of an accident, loss or theft,” concludes Gaoaketse.

Motoring Journalist Brenwin Naidu Joins World Car Awards Panel

vuyi on July 13, 2020

Motoring journalist Brenwin Naidu has been admitted to the jury panel of the prestigious World Car Awards competition.

He is one of four South Africans to serve on the judging panel of the organisation, joining highly respected automotive journalists Hannes Oosthuizen (Cars.co.za), Charleen Clarke (freelancer) and Lerato Matebese (Driven).

Inaugurated in 2003 and officially launched in 2004, World Car Awards is a non-profit organisation designed to acknowledge and celebrate new standards across the spectrum of new passenger vehicles – with the overall World Car of the Year title being the most coveted in the suite of accolades.

According to the 2020 media report by leading research and analysis firm Cision Insights, it is the number one awards programme of its kind, a plaudit it has held for the last eight consecutive years.

Naidu currently holds the position of Section Editor for the Sowetan Motoring and Sunday Times Lifestyle Motoring titles, published weekly and monthly respectively.

The former remains in the top 10 national print publications with the biggest circulations, while the latter lays claim to being the largest-circulating English-language print title in the country. Both are regarded as household names and are further bolstered by formidable online footprints.

In addition, the 27-year-old is a familiar face as a contributor to Ignition GT, the flagship magazine show of Ignition TV, DStv channel 189, the only 24/7 motoring channel in Southern Africa.

The Sowetan, Sunday Times and Ignition TVare owned by Arena Holdings (Pty) Ltd. The automotive offerings by the company also include Business Day Motor Newsand the TimesLIVE Motoringportal.

“I am grateful for the vote of confidence from the Executive Committee Director and Steering Committee of World Car Awards, the opportunity to contribute at the very pinnacle of automotive excellence awards initiatives is a true honour,” Naidu said.

“South Africa deserves representation on the global stage. It is worth remembering that as many as nine of the biggest carmakers in the world have well-established manufacturing and assembly facilities on local soil, catering to markets on the African continent and beyond.”

“Our relevance is also evidenced in the sheer breadth and diversity of the new vehicle market, which surely has to rank among the widest for any country: from the budget-focussed compact A-segment, to the most exclusive prestige marques, there are few brands that do not feature on the local scene.”

“Lastly, our country is home to some of the finest driving roads on the planet, backgrounded by immense natural beauty – and we simply must boast about our numerous iconic racing circuits, renowned on an international scale.”

Denis Droppa, Group Motoring Editor at Arena Holdings and Editor-In-Chief of Business Day Motor News said: “We are proud to have Brenwin Naidu selected as a World Car Awards juror. His deep automotive knowledge and his passion for motoring journalism will make him an asset to this prestigious competition.”

The official launch of the 2021 instalment of the World Car Awards will happen via virtual ceremony on August 26. From September 2020 to January 2021, the testing and scoring process is underway, culminating in the World Car Finals in February. This will be followed by the announcement of the Top Three in the World on March 2, with the winners scheduled to be revealed on March 31.

Since 2018 Naidu has served on the judging panel of the Cars.co.za Awards sponsored by vehicle and asset financier, WesBank. He remains a full member of the South African Guild of Motoring Journalists (SAGMJ) and was the 2017 recipient of the coveted Bridgestone Steve Dlamini Award for Excellence in Motoring Journalism. The accolade recognises promising young achievers, honouring the legacy of Steve Dlamini, one of the first black motoring editors in South Africa, who tragically lost his life in a motorcycle collision in 2009.

Installments, Balloons And GFVs – Which is Best for you?

vuyi on July 8, 2020

“The temptation of a new car can sometimes lure a buyer into a commitment that isn’t an ideal fit for their budget,”
– Ghana Msibi, WesBank Executive Head MotorING Division

WesBank has taken three of the most common purchase plans and simplified the jargon to help buyers choose the best payment plan for them.

Instalment finance

This is the most straightforward of all vehicle finance options. Monthly repayments are calculated on the purchase price of a vehicle minus whatever deposit is put down at the start of the deal.

Finance terms can be structured into time frames of between 12 and 72 months. The longer the term, the lower the monthly repayment will be, but be aware that interest will add up over longer terms and the total amount repaid to the bank will increase proportionally.

Instalment finance with a balloon payment

Similar to instalment finance, except a portion of the purchase price is set aside so that the repayments are calculated on a lower amount. Simply put, balloon payments are similar to deposits except they’re payable at the end of a term instead of at the beginning.

“Fortunately, there are flexible finance options for buyers to choose from. WesBank wants to ensure that all consumers fully understand what’s available so they can make smarter, more responsible decisions on their car-buying journey.”
– GHANA MSIBI, WESBANK EXECUTIVE HEAD of MOTORING DIVISION

Buyers must be cautious of the amount put into a balloon because they will be responsible for the lump sum once the finance term is finished. While it may be attractive to have lower monthly repayments because a larger chunk of the purchase price is placed into a balloon, the repayment of a balloon can be an unexpected debt as this amount will either need to be settled or refinanced at the end of the deal.

Guaranteed future value

Guaranteed future value, also known as GFV or any number of brand-specific titles, is becoming an increasingly popular form of vehicle finance in South Africa. It is important to note that a vehicle’s value begins depreciating (losing monetary value) from the moment it leaves the showroom floor. In line with this depreciation, a GFV plan calculates what the future monetary value of a vehicle will be if specific conditions of vehicle condition, mileage and maintenance are met. This future value is guaranteed at the start of the agreement.

This makes planning ahead easier as consumers know exactly what their car will be worth once the pre-determined contract term (usually between three and four years) is reached. The customer is given three choices at this point – they can either enter into another GFV deal and drive away in new vehicle, settle the outstanding amount and own the vehicle, or simply return the vehicle to the respective dealership and walk away (provided the driver didn’t exceed the allotted mileage and the vehicle is in an acceptable condition).

With a GFV plan, a consumer is essentially only paying for the use of the car. This is why it’s important to know more or less the distance the vehicle will cover during the GFV term. Consumers are liable for penalties if any conditions of the GFV agreement aren’t met.

Every WesBank-approved car dealership has a Finance and Insurance (F&I) executive to inform and assist consumers in their buying journey. The F&I can give you financially sound advice and explain what you can and cannot afford because their role is regulated by the Financial Advisory and Intermediary Services (FAIS) Act as well as the National Credit Act (NCA).

Vehicle finance can be daunting and difficult to understand but that is not an excuse as information is readily available. It’s simply a matter of asking questions without fear and ensuring that you fully understand the terms and conditions of your vehicle finance contract prior to signing it.

Adulting – The Art of Buying Your First Car

vuyi on June 25, 2020

For many young students and graduates their first introduction to adulting starts when they make a decision to buy their first car. This can be a daunting experience as car ownership involves many additional expenses such as fuel, insurance and maintenance which can all impact monthly budgets and cash flow.

Becoming independently mobile can be an exciting prospect, but buying a car is also a long term commitment so it’s important to understand the economics involved.

These tips from WesBank will help navigate the decision making and buying process and ensure that students and graduates are better equipped in their financial journey:

• Track your income and expenses:

This means understanding exactly how much you make versus how much you spend. Draw up a detailed budget including income and expenses to determine what you can realistically afford to spend on a car. As difficult as it may be, stick to your budget.

Purchasing a vehicle can be stressful for students and graduates, especially because they do not always have a credit history.

• Spend less than you make every month:

A budget is important as it helps to ensure that you spend less than what you make each month. If you do not track your spending, it can be easy to overspend and ultimately end up in a debt situation that’s difficult to overcome.

• Minimise on lifestyle inflation:

Being young often means high pressure to go out and socialise, or buy the most expensive items of clothing and gadgets, instead of sav- ing towards bigger purchases, like a personal vehicle, a house, or saving for emergencies. It’s important to be aware of your entertainment needs, and identify other less expensive means of entertainment. Binge spending once in a while is okay, budget permitting, but be careful not to overdo it through lifestyle pressures. The money that you’re spending on unnecessary items, such as excessive entertainment, is money that you could be using towards something that will make a real difference to your life.

• Start saving early:

One of the most common mistakes any working individual makes is thinking they will only start saving once they start earning a certain amount. Saving is one important financial discipline that should not be put off. Even if you start with a small amount, saving is a lifelong decision which impacts how early you can retire as well as having a go-to ‘piggy bank’ in case of a financially demanding emergency.

Purchasing a vehicle can be stressful for students and graduates, especially because they do not always have a credit history.

For those looking to buy their first car, the WesBank Graduate Finance offering provides graduates with competitive interest rates and credit history is not essential. The entire application process can be accessed and completed online.

Wesbank Graduate Finance is designed for graduates who:

Have a University degree, three-year diploma or NQF 6 qualification
Have graduated within the past three years from date of application
Are under the age of 31
Can provide proof of employment
Hold a valid driver’s license
Are South African citizens