How does the petrol price affect rent to buy?

The petrol price is an often-contentious topic in South Africa thanks to its constantly fluctuating nature which affects everything from the cost of fuel to the price of food. At the moment, motorists are paying around R17.10 for 93 unleaded petrol inland and R16.58 at the coast.

When it comes to the petrol price and contracts like rent to buy, should you (as a potential rent to buy driver or even a current rent to buy vehicle driver) be worried that the petrol price (whether it be going up or down) will affect your monthly instalments?

Thankfully, the simplest answer is NO! Here is why;

Rental Instalments will never change

At Future Motor Lease, as with most reputable rent to buy companies, a contract is drawn up at the beginning of the rent to buy period that agrees on a set monthly rental figure or instalment. This figure is not affected by fluctuations in the petrol price and no matter whether the price increases or decreases, your rental instalments will never change.

Monthly insurance instalments are not affected

We often get asked if the petrol price would increase the monthly insurance instalments that are a part of the rent to buy contract. We can safely say that these costs are also not affected at all by petrol price increases or decreases.

Travel costs are affected

The only costs that are affected by the petrol price increase or decrease (as with every other driver on the road) is the cost to fill up. Whether you are a rent to by vehicle driver or a car owner already, you will be affected by the petrol price when you fill up your car and will feel the pinch when it comes to the Rand number on the petrol pump when you have to pay.

For more information on rent to buy contracts, chat to the experts at Future Motor Lease now or call us on 011 026 0003.