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Johannesburg - Absa Group [JSE:ASA] is giving South African
consumers an incentive to polish up their green credentials.
South Africa's largest retail bank has launched the Absa
Green Vehicle Finance division, which offers finance at a preferential rate to
consumers who buy environmentally friendly vehicles.
It has introduced a new finance model in an effort to make
green cars more attractive to prospective buyers as demand grows for smaller,
more environmentally friendly cars.
Sydney Soundy, managing executive for Absa vehicle finance,
estimates that about 3 400 cars in this category were sold between January and
May 2011.
Customers who seek finance for cars with a carbon footprint
of less than 100g per kilometre will receive a rebate of 0.75% on their
interest rates, while cars that emit less than 120g per kilometre are eligible
for a 0.25% rebate. This applies to both variable and fixed interest rates.
This is likely to come as a slight relief for
environmentally conscious consumers burdened by the ever-rising cost of
owning a car and fluctuating petrol prices, as well as the soon-to-be applied
tolls in Gauteng.
The offer is available only to new customers looking to
finance a new or used car, and not for existing Absa car finance clients.
The deal, a first for South African consumers, applies only
to 22 car models from 12 manufacturers. They include the Audi A1, Citroen C1
and C3, Honda Jazz, Smart Car, Toyota Aygo and the Toyota Prius to name a few.
The complete list can be requested from dealerships as well as any Absa branch.
With South Africa being one of the 20 biggest greenhouse gas
offenders in the world, releasing a carbon footprint of about 500 million
tonnes each year, this is a way for consumers to be more proactive in reducing
SA's carbon emissions and offers a further incentive for people to
buy green cars.
Says Soundy: "Absa wants to be seen to be contributing
to government's action programmes. This is one way of linking to what the
finance ministry was aiming for when they introduced the tax on carbon
emissions.
"We think that we are helping to convince more people
to drive more environmentally friendly cars.”
Although South Africans still love their luxury sedans and
fast coupes, there is hope that this will encourage more green car sales.
"I think it (the market) will grow in the coming years.
We have seen that there is a movement in SA towards smaller vehicles. We think
it is a growth area," Soundy explains.
The new division has been welcomed by ibuyeco, an
environmentally friendly insurance provider.
"Any initiative that assists in countering the damage caused by cars to the environment is positive. Climate change is everyone's concern and more should and must be done to safeguard the sustainability of our planet for our children," says ibuyeco spokesperson Bradley Du Chenne.
Anyone is eligible to apply for green car finance, as long
as standard credit rules are met and they buy one of 22 the listed models.
The offer kicks off on Thursday and is available nationwide.
