Following a financial package currently being provided in certain Latin American countries and loosely modelled on our own system, DaimlerChrysler Services has launched a new vehicle financing option called Dream Drive.Stokvel system, DaimlerChrysler Services has launched a new vehicle financing option called Dream Drive.content here

Following a financial package currently being provided in certain Latin American countries and loosely modelled on our own system, DaimlerChrysler Services has launched a new vehicle financing option called Dream Drive.

Basically, using a targeted savings plan, separate people would pool to collectively pay for their vehicles and each month, depending on the size of the group, at least one person will receive a new car.

No deposit is required to join and the monthly instalments are on an interest-free basis. A "joining fee" (about one per cent of the vehicle's cost price) is included in the monthly payments and the service applies to all passenger and commercial vehicle brands within the DaimlerChrysler group.

Using the company's example, if 60 people decide to purchase a similar model over a 60-month period, each month one member in the group will receive a new car. Depending on the buyer, he or she can choose to receive the car either via a random draw or bidding process. And whether you take delivery of your new car in the first, twenty-first or fifty-seventh month, all participants will continue to pay their monthly instalments over the agreed period.

Applicants must be over 18 years old and must be South African citizens to qualify. SMS "dream" to 32994 if you would like a consultant to contact you or go to www.daimlerchryslerservices.co.za and click on the Dream Drive icon for more information.

According to DaimlerChrysler Services executive chairman Kerry Elsdon, the rates are "significantly cheaper than a conventional loan", with flexible terms. After receiving the applications DaimlerChrysler Services will pool parties with similar requirements, but should a suitable group not be found within 60 days, the payments are fully refundable.

This novel idea has reportedly been used in several Latin American countries for years, with more than 20 000 members signed in Mexico alone.

"The concept has proven very successful in Latin America and we believe it can work very well in South Africa especially because it works similarly to the Stokvel concept, which is very well known here," Elsdon said.

However, where the money raised in a can be used in many ways, Dream Drive's sole objective is the purchase of new cars for its group members. In South Africa, Dream Drive is targeted at first time car buyers who would not necessarily have a credit history, allowing them to own a new car and develop a credit history at the same time. It is also aimed at those acquiring an additional vehicle, the taxi industry and the commercial sector.

Original article from Car