How VW aims to switch South Africans on to EV ownership with lease option
Leasing an electric vehicle (EV) is a new concept in South Africa. Mini was the first to offer this option for its Cooper SE, which can be leased for between one to three years.
Earlier this year, Volkswagen South Africa told Business Day it would lease its upcoming electric ID.4, which would be the only way consumers could get their hands on one.
The ID.4 is one of the best-selling EVs in Europe. The vehicle is expected to make its way to South Africa within the next two years.
Steffen Knapp, head of passenger cars at VW South Africa, said 95% of all its electric cars in Germany are being leased, and the company’s new concept called Guaranteed Future Value (GFV), along with a lease option, will allow customers locally to drive the ID.4 and future EVs.
Knapp said GFV means a customer won’t own a vehicle, which has historically been a problem in South Africa because of high inflation rates.
One of the GFV options is based on a residual value that will allow the customer to get a new car, which Knapp said would be a huge advantage for VW because it will be in possession of the EVs, thus allowing it to control the second-hand market.
“This is what we potentially got wrong in the past. We didn’t care about used cars. We didn’t know where our vehicles were being sold. They don’t come back to the dealer because they are not getting the best price.”
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Recharged is an independent site that focuses on technology, electric vehicles, and the digital life by Nafisa Akabor. Drawing from her 16-year tech journalism career, expect news, reviews, how-tos, comparisons, and practical uses of tech that are easy to digest. email@example.com