PRODUCTS & SERVICES

There are essentially three methods of financing a vehicle as a travel allowance receiver, namely, Instalment Sale, Financial Lease or Operating Rental. The finance methods differ in terms of ownership of the vehicle and tax treatment. The detail of each option is explained below: Ideal for the allowance receiver who finances a vehicle over a period of 60 months or more and who wishes to own the vehicle at the end of the finance contract. Ownership passes automatically after making the final payment. The contract tenor may range between 12 and 72 months. In addition, dependant on your credit rating, you may be permitted to structure a balloon payment into your repayment plan. It is fairly common for allowance receivers to opt for a balloon payment in order to reduce the monthly instalments. From a perks tax point of view, as an allowance receiver, you are entitled to claim wear and tear of the vehicle and as the finance charges against the allowance that you earn (Applicable if using the 'Actual cost' formula when claiming business travel deduction) - refer to the Perks Tax Guide tab for more information. This option is ideal for the allowance receiver who finances the vehicle over a period of less than 60 months. This is also the ideal option for anyone paying a deposit or including a balloon payment as part of the payment plan. You may elect to take ownership at the end of contract after making the final payment. From a perks tax point of view, as an allowance receiver, you are entitled to claim the sum of the repayments against your allowance earned (Applicable if using the 'Actual cost' formula when claiming business travel deduction) - refer to the Perks Tax Guide tab for more information. Specifically designed for the travel allowance receiver who wishes to use a vehicle for a specific period of time and distance rather than wanting ownership of a depreciating asset. It's much like hiring a car from a car hire company, but for a long period. This option generally provides the lowest cash outflow - more car for your money. These agreements offer the following features and benefits:

• You only pay for the portion of depreciation that you agree to use.
• Ownership is possible but not obligatory, by settling the remaining capital including the residual value.
• VAT is not included in the purchase price (VAT is levied on the monthly payments only and not the whole value of the vehicle). This means that you only pay VAT on the portion you use.
• The user of the vehicle is not at risk when selling the vehicle should the market value be lower than originally anticipated.
• An operating rental agreement includes a residual value (guaranteed resale value) held by Bidvest Bank thereby reducing the monthly rental payable.
• It is common to include a 'bolt-on' maintenance contract, further eliminating any risk such as unforeseen repair bills.
• The main benefit of this option is that one is able to fix all motoring costs with the exception of fuel expenses, assuming that the prime interest rate remain unchanged.

From a perks tax point of view, as an allowance receiver, you are entitled to claim the sum of the repayments plus the other motoring costs such as insurance, maintenance etc. against your allowance earned (Applicable if using the 'Actual cost' formula when claiming business travel deduction) - refer to the Perks Tax Guide tab for more information. Every car scheme presents different alternatives for individual employees as well as for your company. Bidvest Bank provides comprehensive information to both employer and employee covering:

• Vehicle selection and affordability.
• Evaluation of tax implications for each employee.
• Resale of vehicles at optimum prices at the end of the finance contract, and
• On-going information to employees and employers as circumstances and needs change.

Using our various tax tools we are able to assist you in making the most economical choice. Bidvest Bank's 'Maintenance Plan' is a secure inflation protected plan, providing fixed maintenance costs to ensure tomorrow's services at today's prices for an agreed period and distance. These contracts cater for all companies or individuals, irrespective of whether vehicles have been financed or purchased for cash.

The greatest benefit is derived by proactive authorization of work. When a vehicle arrives at a dealer's workshop for repairs or maintenance our call centre is contacted and we negotiate and approve work according to manufacturer's requirements. We have access to all parts and labour pricing and as stipulated operation times for all repair operations. In addition, we have access to all manufacturer's warranty programs thereby ensuring that we do not pay for unnecessary work or pay an unnecessary premium. This capability translates into cost reduction for our customers. Summary of features and benefits:

• No risk of unforeseen repair expenses.
• Parts and labour discounts through our volume-based purchasing power.
• Proactive authorisations of maintenance lead to price certainty and overall cost reduction
• Fully maintained vehicle fleet ensures optimum resale value.
• VAT input credits on all maintenance expenses.
• Ease of budgeting – expenses are fixed for the duration of the contract.
• No payment for unnecessary parts and labour.
• Applicable fleet discounts obtained - parts, tyres and services.
• Economies of scale - risk and costs are spread over a greater number of vehicles.
• Expertise – industry specialists deal with authorisations and pricing.
• Warranty / Policy claims are always maximised thereby reducing the cost.
• Overcharging is avoided.

If you opt to become a Club McCarthy member, you will be rewarded with the following value added benefits:

• 24 Hour SOS emergency roadside and medical assistance.
• Discounted servicing and special offers on parts.
• Hotel accommodation, courtesy transport, tow-in services and car rentals during breakdowns and emergency situations.
• Vehicle recovery and storage arrangements.
• 24 Hour call line in the event of a vehicle breakdown, be it mechanical, out of fuel, a puncture or keys locked in the car, and
• New and used vehicles supplied from McCarthy dealerships automatically qualify for one year's free Club McCarthy membership.

For more information on Club McCarthy, visit their website at www.clubmccarthy.co.za or the call centre on 0860 258 262. Budget Car and Van Rental, is also a proud member of the Bidvest Group. As a Club McCarthy member you are entitled to a special car hire rate through Budget. To secure these rates you will need to quote a "rate code" as well as your Club McCarthy membership number at the time of making a reservation. Whether you need a vehicle for a business trip or just while yours is being serviced, Budget will provide a vehicle at preferential rates. For more information on Budget Car and Van Rental, visit their website at www.budget.co.za When the time comes to sell your vehicle, let the experts sell your vehicle on your behalf. Bidvest Bank is able to market your vehicle through our national on-line auction system. This method of disposal has proved not only to achieve maximum resale prices but it is a convenient, risk free and low cost method of selling a vehicle. Bidvest Bank, through Bidvest insurance, can assist in your individual insurance needs, including: Our brokerage will offer you up to 15 comparative insurance quotations. Let one our skilled consultants help you save time and hassle by covering your vehicle against accident, theft and hijacking. Comprehensive insurance is a condition of most finance agreements and so let us help you achieve this in the quickest, smartest and most hassle-free manner possible. With our X-Sure product, you save on unplanned, expensive tyre replacement costs and are covered for irreparable damage caused by road hazards. You only pay for the tread you have used and affordable, once off, premium payments are also available. The X-Sure policy will cover 100% of the tyre's value and will be credited to new tyres within the first 2000km/30 day period. Our X-Sure product also covers tyres for up to 3 years/60,000 kms and includes a puncture repair benefit. Another great benefit of this product is that there are fast and reliable claims facilities at all Tiger Wheel & Tyre outlets nationwide. Our Smart policies provide a body repair program that keeps your vehicle in showroom condition without compromising your no-claim bonus. The policy provides cover against chips, minor dents, hail damage, road tar, mag wheel damage, headlamp damage, light scratches and scuffs. Some other key benefits of this Smart product are namely, affordable vehicle maintenance that ensures excellent resale value, unlimited claims, a flat based premium that is based on the policy terms and not the type of vehicle, convenient mobile repairs at home or at work and a 3 year guarantee on all repairs. Even if you are comprehensively insured, should you lose your car to an accident or theft, there is often a gap between the payout of your comprehensive insurance and the amount still owing on your finance agreement. These costs are usually unforeseen and are not generally covered by most insurance policies. Our Shortfall Protection policy is designed to provide cover for this "gap" ensuring that you are not left out of pocket. In addition, the policy offers personal accident cover that pays R10,000 per person for death or permanent disability while travelling in a vehicle covered by the Shortfall cover (to a limit R50,000). On top of this, a built in loyalty bonus gives R6,000 towards replacement vehicle from a McCarthy dealership within 3 months as well as R6,000 that would be put towards the excess charged by your underlying insurer. Our shortfall policy also pays R1,000 towards the combined costs for towing and storage. This is a credit life insurance product that covers you in unforeseen circumstances and will help you meet your credit agreement obligations in the event of the following:

• Temporary disability: Covers up to 6 months vehicle instalments on your behalf.
• Retrenchment/Sequestration/Liquidation: Covers up to 4 months instalments on your behalf.
• Dread Disease: Covers 6 months vehicle instalments upfront should you suffer from one of 27 specific dread diseases. After 6 months, if you still remain permanently disabled, the product will settle the outstanding amount.
• Permanent Disability: Will settle the outstanding debt with the financial institution.
• Death: Will settle the outstanding debt with the financial institution.
• Cash Back Bonus: Pays out to the client 10% of all their premiums as a "cash back" bonus benefit on the expiry of the policy or if you settle your vehicles finance contract at any time after 2 years.

This is a protection and recovery system that identifies your vehicle and its components by using thousands of microscopic encrypted dots. The Veridot product ensures that your asset is permanently identifiable and increases your personal safety by making your vehicle worthless to thieves. There is an excess guarantee that pays up to R4,000 of your insurance excess should your vehicle be stolen and not recovered. In addition to this, there is a loyalty bonus which pays an additional R2,000 if you replace the stolen vehicle through a McCarthy dealership. We have developed a specialist insurance package tailored for the car allowance market.

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