Planet42, working to rapidly close the mobility gap in South Africa, announces that it has surpassed the milestone of buying 5 000 cars.
Since its first South African purchase in February 2018, Planet42 has experienced accelerating growth, with the most recent 1 141 cars being bought in just 61 days, during August and September of 2021.
Planet42 buys both new and pre-owned cars directly from over 700 partner dealership businesses that are eager to provide their customers with alternative, flexible financing options in this drastically underbanked country. The relationship between Planet42 and its dealer networks has translated into a 26% average increase in sales for dealers, and Planet42 is continually looking to expand its list of partner dealers to meet its ambitious goals.
The business’s rapid growth supports its goal of democratising access to mobility by providing affordable vehicle subscriptions to people unfairly overlooked by banks. Planet42’s model leverages technology and empowers local partners to promote financial and social inclusion in regions where the rent-to-buy model can have the greatest impact on the cycle of transport inequality.
Of the 5 000 customers served so far, 93% would not have a car without the support of Planet42 because traditional vehicle finance is overly restrictive. While these individuals can afford the monthly payments, banks and vehicle finance businesses would have turned them down either due to a lack of a credit record or very minor past infringements.
Planet42 chief operating officer Grant Wing says: “We are extremely proud to have bought over 5 000 cars for South Africans so far who otherwise wouldn’t have vehicles, and we expect to keep growing at this pace or faster. By 2025, we want to have bought 200 000 cars in South Africa alone, and we’re planning on expanding to other markets. All this growth was made possible by partnering with the right dealers including some established OEM’s such as the CMH Group.”
Planet42 has already raised over R500-million of debt and equity. The business plans on purchasing 1-million cars worldwide by 2025, and it recently announced its expansion to new markets in Latin America.
Wing adds: “Planet42 takes on a significant amount of risk as a basic part of our business model, but we have invested time and expertise in understanding that risk and we believe it’s worthwhile. We’re making a real difference in the lives of our customers. It is rare that major change is achieved without a bit of risk. We’re on track to continue growing, and the future will be absolutely massive.”