Banks in South Africa tend to be very cautious and conservative, so much so that consumers who make an average salary still have problems getting proper financing for used cars. With the size of the country, and a generally poor public transit network, means a car is needed for day to day life and is often the only choice for many to move around the country.
CarGet, an Estonian startup founded in 2017, is looking to fill the gap and provides a rent-to-buy vehicle rental service to South African individuals. The company focuses on pre-owned cars.
“Even second-hand cars are prohibitively expensive [in South Africa] for most consumers because of highly restrictive import regulations. In a way, CarGet has created a totally new market segment by financing older cars,” Erik Oja, CarGet’s CEO, said in a statement. “There are approximately 11 million cars driving on South Africa’s roads in total. Our goal is to achieve one percent of the overall market, which means we’re looking to buy about 100,000 cars.”
According to Oja, CarGet is not only investing Estonian money in South Africa but has also integrated Estonian IT-solutions in its services. “The backbone of our IT system is developed in Estonia and all the processes are digitalized, which is something quite unusual in the South African market. Not only do these solutions allow us to provide our services better and faster but it also helps us to expand rapidly.”
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