We fielded a lot of questions on our last article about Planet 42. We asked them to answer the most frequently asked questions from our dealer network.
Planet 42 is now one of the single biggest clients for used car dealers in South Africa, having bought well over 2,000 cars from over 300 dealers as reported here.
The article garnered much reaction, and Dealerfloor is grateful to Samantha Speedy, Account Manager and self-described “fixer” at Planet42, for answering dealerships’ most frequently asked questions, as well as those posed by prospective buyers.
Do you have any restrictions on vehicle type?
A: We purchase any roadworthy vehicle on your floor as long as it is not a code 3.
Do you have a restriction on age or mileage of the vehicle?
A: No, we do not have a restriction on age or mileage.
Do you provide any advertising material for the dealer?
A: We provide a canvas banner which you are welcome to place outside your dealership floor. We have also started to direct some of our website applications to the dealerships we work with. These are pre-approved applications submitted by potential customers on planet42.com/apply.
Does the six-month period stipulated by the Consumer Protection Act (CPA 68 of 2008) still apply?
A: Yes, the CPA period still applies. You know your stock better than anyone and need to take responsibility for the car during the CPA period. However, similar to banks we do pay for a motor warranty on each vehicle.
Is the warranty your own warranty or can I as the dealer sign up one with the customer?
A: We do not have our own warranty, so you as the dealer can activate the warranty with the customer and claim the commission from the warranty provider. The warranty provider is your choice, however we can recommend a few providers should you not have one available to you.
Do I need to be registered as a Financial Services Provider?
A: No, as this is a rental agreement and we are not a credit provider, you are not required to be FSP registered.
Do you offer any Dealer Incentive Commission (DIC)?
A: We do not offer DIC, however we do pay the full retail price for the vehicle, and you can claim the motor warranty commission.
Do you assist customers under debt review?
A: It depends on the individual customer, our automated scoring system will render an initial approval decision within 1 minute of submitting the application. Most of our customers are considered “blacklisted” by banks..
What do I need from a customer to do an application with Planet42?
A: For the initial application you only need the customer’s name, ID code, phone number, and reported monthly income. Once our automated scoring system approves the application and the customer wishes to proceed with the deal you will need to upload standard documents:
From there, the documents will go to our support team for validation.
What are the requirements for signing up?
A: You will need to be registered to pay Value Added Tax (VAT) and have a dealership floor with your own vehicles.
Are there any sign-up costs or monthly fees for the dealer?
A: There are no sign-up costs or monthly fees.
Questions from prospective buyers
Does it cost more to rent than to buy on instalment?
Yes, we are serving customers who have been rejected by traditional credit providers and we also buy cars that banks deem too old (our average car is 12 years old). Our rent-to-buy car subscription service is also much more flexible than bank finance, enabling the customer to return the car after six months with paying a return fee equivalent to one monthly subscription payment. To compensate for the additional risk and flexibility the monthly payment will be more expensive than for generic finance providers..
If so, how much more?
Our pricing model is dynamic so the premium paid depends on the risk profile of the customer and other factors. Our monthly subscription payment also includes extras like comprehensive insurance and tracking, so a direct comparison cannot be made. The monthly payment will be somewhere between bank finance and traditional car rental premiums.
Do I pay a deposit?
Yes, a deposit is mandatory. The minimum deposit currently starts from R3,999
What happens if I want to give the car back, is there a deposit that I lose?
The deposit serves as the first subscription/rental payment and is non-refundable
Who insures the vehicle, Planet42 or the customer?
The vehicle will be added to Planet42’s fleet policy, giving it full comprehensive cover from the minute the customer takes delivery of the car
Is it mandatory to get insurance?
Yes, fully comprehensive insurance is included in the monthly subscription payment
GiG Motors is one of the first dealers to have signed up with Planet42, the rent-to-own company that is democratising vehicle finance in Mzansi. Dealerfloor spoke to Renash Rajkaran to hear how P42 has impacted their business.
CP Nel Motors, the Isuzu dealership in Mossel Bay, and Isuzu ChildLife have joined forces to provide an opportunity for at least 60 disadvantaged young women from the area to participate in the Sea the Change environmental education youth programme.
Mitsubishi is introducing a new corporate look at all its dealers across the globe. In South Africa, Mitsubishi Centurion is the first dealership to showcase this new look.