Hope for vehicle finance

New firm revives ambition of those whose applications had been declined.

- Roy Cokayne

There is hope for consumers whose applications for vehicle finance have been turned down. Kriben Reddy, founder and CEO of new digital solutions service Kredo Mobility, says while vehicle ownership is linked to a consumer's ability to get credit or finance, alternative mobility solutions, such as long-term rentals, subscriptions, or a long-term lease, are now available.

Reddy says there are nearly 25,000 vehicles on the road that are on subscription, or long-term lease or rental agreement.

He however admits the volume of alternative mobility solution agreements is still exceptionally low compared with vehicle finance, but says over the next three to five years, the growth might be like WeBuyCarsOnline, established in 2001, which has shown impressive growth and was listed on the main board of the JSE in April.

Reddy said dealers, such as Penta Group, had created a business - Drive - which focuses on subscription and rental, but alternative mobility solutions were not mainstream or widespread.

What will drive uptake?

Reddy said the new generation of consumers would drive these alternative mobility solutions because they do not want to own a vehicle, but want access to a vehicle rather than ownership.