With the MG MoreDRIVE Guaranteed Future Value solution, you have the benefit of lower monthly repayments, the flexibility of driving a new MG more often and more choices at the end of the finance agreement term. These include trading in the vehicle and paying the GFV, retaining the vehicle and paying the GFV, returning the vehicle with no further obligations (subject to the vehicle meeting the condition requirements and kilometre restrictions), or refinancing the GFV.
“MoreDRIVE brings our range of vehicles within reach to many more customers,” comments Jack Wang, Vice President in charge of Sales and Marketing for MG Motor South Africa. “In a market where affordability remains paramount and predictable cost of ownership brings peace of mind, the Guaranteed Future Value solution ticks all those boxes – and more.”
MoreDRIVE is designed to provide customers with a vehicle financing solution focused on flexibility and affordability. The flexibility lies in the duration of the finance agreement terms, which can vary from 24 months to 48 months, and the right to choose what happens at the end of the term, which in combination with the GFV, allows for lower monthly repayments.
END OF TERM, NOT END OF THE ROAD
In practice, GFV solutions function much like the traditional Instalment Sale option with a balloon payment: the only difference is that as part of the agreement, a separate addendum is signed the customer and MG Finance, which gives the customer the right to hand the vehicle back at the end of the term and have MG Finance settle the balloon on the customer’s behalf – provided that a defined set of conditions is met. It is that right which turns an ordinary balloon into a GFV.
One of the biggest benefits of a GFV finance solution is that you have options at the end of the finance agreement term. You have the following options:
1. Keep driving the same MG. You continue driving your MG, in which case you must settle the GFV, or refinance it.
2. Drive a new MG. At the end of the contract term, you have the option to return the MG you’re driving and enter into a new finance agreement for a brand-new vehicle. It must be noted that to exercise this option, the vehicle must be within the agreed kilometres and meet the fair wear and tear conditions. If the vehicle meets the stipulated criteria, you will not be liable to repay the balloon payment.
3. Return your MG. At the end of the contract term, you also have the option to return your car to any MG dealership: if the vehicle meets the agreed kilometres and fair wear and tear conditions, MG Finance will settle the GFV.
TERMS AND CONDITIONS APPLY
The conditions? GFV solutions have annual kilometre limitations, for example 20,000km per year, as well as a maintenance requirement within a clearly laid out set of fair wear and tear conditions. It is important that you fully understand the finance agreement because the GFV is based on the agreed kilometre allowance.
This limitation may seem restrictive, but in reality, most customers know how many kilometres they travel each year, which allows them to select a kilometre parameter that is aligned with their lifestyle. If you go over the allowance up to 2,000km, you will be charged for the excess kilometres. If you go over the allowance more than 2,000km – or if the vehicle doesn’t meet the fair wear and tear conditions at the end of the term – you forfeit the option to return the vehicle and you will be liable to settle all outstanding amounts including the GFV.
Likewise, it is your responsibility to ensure the vehicle is serviced and maintained according to the fair wear and tear guidelines provided to you as part of the GFV Addendum. Generally, very small dents and scratches are acceptable, but anything more serious must be repaired to the manufacturer’s standards before returning the vehicle or trading it in. If the vehicle does not meet the fair wear and tear standards at the end of the term, or you haven’t kept up with the official servicing and maintenance schedules, it will also cost you, and you may remain liable to pay the GFV.
ATTAINABLE PREMIUM REDEFINED: DRIVE THE MG HS FROM R4,999 PER MONTH WHEN FINANCED THROUGH MG MoreDRIVE
With MG MoreDRIVE, the comprehensively specified and fun-to-drive MG HS SUV is now available from only R4,999 per month, with a 10% deposit requirement and a 20,000km annual kilometre limitation over 24 months. At the end of the term, customers can choose to keep the car, to drive a new car or to return the car, as detailed above and subject to the detailed terms and conditions that underpin the individual customer’s finance contract.
“The MG HS SUV is the anchor in our current line-up and the best example of how our 101-year heritage and cutting-edge new technology work together to deliver not only a great-looking vehicle, but one that is also well built and highly engaging to drive,” adds Wang. “With our new MoreDRIVE Guaranteed Future Value finance solution, we are making it easier and more attainable to experience our brand’s driving DNA first-hand. The MG MoreDRIVE Guaranteed Future Value finance solution is available across most of the MG line-up, with offers available on MG3, MG ZS, MG ZS PRO and MG HS model ranges.”
