MG Motor South Africa has introduced a finance solution called MG MoreDRIVE Guaranteed Future Value, aimed at making its vehicle range more accessible to buyers while offering flexibility at the end of the contract term.
The product functions in a similar way to a traditional instalment sale agreement with a balloon payment. The difference is that customers sign an addendum with MG Finance granting them the right to return the vehicle at the end of the term, provided certain conditions are met, and have MG Finance settle the balloon amount on their behalf.
Jack Wang, Vice President responsible for Sales and Marketing at MG Motor South Africa, said the solution responds to a market where affordability and predictable ownership costs remain priorities for buyers.
Your desire. Your MG. Right here - just a click away
MoreDRIVE contracts run between 24 and 48 months. At the end of the term, customers have three options. They can keep the vehicle and settle or refinance the Guaranteed Future Value amount. They can return the vehicle and enter a new finance agreement for another MG model. Or they can return the vehicle to any MG dealership, in which case MG Finance will settle the Guaranteed Future Value if the vehicle meets the agreed conditions.
The conditions include an annual kilometre limit, for example 20 000 km a year, and adherence to fair wear and tear standards. Customers who exceed the allowance by up to 2 000 km will be charged for the excess. Exceeding the limit by more than 2 000 km, or failing to meet the wear and tear requirements, means the customer forfeits the right to return the vehicle and remains liable for all outstanding amounts, including the Guaranteed Future Value.
Servicing and maintenance according to the schedules set out in the GFV addendum also remain the customer's responsibility. Minor dents and scratches are generally acceptable, but more significant damage must be repaired to manufacturer standards before the vehicle is returned or traded in. Failure to meet these standards may also result in the customer remaining liable for the Guaranteed Future Value.
Can I afford it – find out with this handy Finance Calculator
MG says the kilometre limitation is manageable for most buyers, as they typically know their annual mileage and can select a parameter that suits their driving habits.
Under the programme, the MG HS SUV is available from R4 999 a month with a 10% deposit, a 20 000 km annual limit and a 24-month term. Wang described the HS as a central model in the current line-up, citing the brand's 101-year heritage and its current technology.
The MoreDRIVE Guaranteed Future Value solution is available across most of the MG range, including the MG3, MG ZS, MG ZS PRO and MG HS models.
Colin Windell for Colin-on-Cars in association with
proudly ALL THINGS MOTORING
