Capital Equipment News February 2018

FINANCING

FINANCE & INSURANCE IMPACT ON TOC - Example Long-haul

Other fixed costs, 1.0%

Overheads, 4.3 %

tive and tailor-made insurance products that are set to close the gaps in the existing con- ventional and outdated insurance packages already in the market. Speaking to Capital Equipment News last year, Belinda Felix, Insurance Manager at Scania Finance, reiterated that offering comprehensive insurance was the last puzzle to the company’s drive towards being a one-stop shop, all the way from product to financing and insurance. “It’s important for us to offer a one-stop shop to our custom- ers. We are able to understand risk, not only from a finance perspective, but from an insurance standpoint as well, so that we can mitigate it for us, as well as for the customer,” she said. “We already have a portfolio of about R70-million on the insurance side of the business,” says Novotny. “We aim to in- crease that in the next two years. We have set the ball rolling to be able to achieve this through tying in all the necessary networks including insurers, aftersales, brokers and repairers. Our own brokerage licence allows us, together with insurers, to build unique Scania products that are not currently avail- able on the market.” Competitive edge Novotny says Scania Finance & Insurance Southern and East Africa’s dedication is its key competitive edge. He says the company offers greater value to Scania customers by being easy to do business with, through its speed and industry knowledge, and by working hard to develop long-term relationships with customers throughout the business cycles. “I am of the view that it is better to predict than analyse past trends in order to be able to offer stable finance support to customers in good and bad times,” he says. Novotny adds that the major advantage of Scania’s captive finance is the knowledge of the product and cooperation between different functions that are embedded within the company. “There are different functions within the Scania organisation, including Scania Parts, Scania Fleet Management, Scania Rental, Scania Finance and Insurance, as well as Scania Used, to mention a few, which are driven by the same values, making the company a one-stop shop for all our cus- tomers’ needs,” says Novotny. “Dealing with a single organisation for all these needs, all the way from the product, through to finance, insurance and aftersales service, maximises uptime for the customer. I strongly believe in our common solution, which we can provide to every customer as Scania South Africa,” concludes Novotny. ❂

Crew, 10.3 %

Tolls, 7.7 %

Fuel, 44.2%

Finance, 17.2 %

Insurance, 6.8 %

Tyres, 4.4 %

Maintenance, 4.1 %

TOC - Scania R500 LA6x4 MSZ

The growth of Scania Finance locally has been phenomenal in the past three years, and in November 2017, the portfolio reached R5-billion, up from R2,5-billion in 2014.

offer services such Finance Leases with balloon payments, Finance Leases with trade-ins and buy-backs, Finance Leases with residual values, as well as full maintenance leases,” explains Novotny. These services are complemented by cross-border financing and insurance. Scania South Africa is the first OEM in the market to be a certified insurance broker. “We are now a certified insurance broker in South Africa, having been granted our brokerage licence by the Financial Services Board in August last year,” explains Novotny. To date, Scania South Africa’s insurance portfolio is about R70-million, catering for a total of 1 876 customers. Novotny says Scania South Africa has placed major focus on its insurance offering to be able to provide comprehensive, effec-

“I am of the view that it is better to predict than analyse past trends in order to be able to offer stable finance support to customers in good and bad times.”

CAPITAL EQUIPMENT NEWS FEBRUARY 2018 8