Understanding Guaranteed Future Value: What you need to know

Dreaming of driving a new Suzuki without the financial stress? Learn how Guaranteed Future Value (GFV) can help you budget better and map out your route to your future rides. Let us simplify the complex world of car finance and show you how GFV can put you in the driver's seat!

Estimated reading time: 8 minutes, 26 seconds.

With all the exciting new Suzukis hitting the roads, it’s no surprise that more drivers want to get new cars more often. However, financial considerations like budgeting, depreciation, and market fluctuations can make getting new wheels more complicated. 

This is where Guaranteed Future Value (GFV) can make a world of difference in helping you get the new Suzuki you’re dreaming of driving. We know financial lingo can be complicated and seem overwhelming, so we’re going to break down what GFV is, how it works, and how it can help you.

What is Guaranteed Future Value exactly?

GFV is a financial product designed to give you flexibility and peace of mind when purchasing a vehicle on an instalment sale agreement. In a nutshell, GFV guarantees the future value of your car at the end of your finance agreement. This means you know upfront what your car will be worth, regardless of market fluctuation. Think of it as a safety net that takes the guesswork out of your car's future value and allows you to budget around the guaranteed value. You're also protected from the risk of unexpected depreciation and have the benefit of paying lower monthly payments compared to traditional finance options.

How does GFV Work?

Understanding how GFV works will help you make an informed decision. But it doesn’t have to be confusing! Here’s a step-by-step breakdown of the process:.

1. Choose your vehicle and terms: Select the Suzuki model you want and decide on the optional deposit amount (if any), the repayment term (usually 36 or 48 months), and the mileage parameters.
   
   
2. Sign the agreement: Enter into the finance agreement with Suzuki Mobility Finance, and take delivery of your new Suzuki.
   
   
3. Enjoy Your ride: Drive your car knowing that its future value is guaranteed! (NB: this is provided you stay within the agreed mileage and meet the fair wear and tear conditions).
   
   
4. End of term options: As your instalment sale agreement term nears its end, you’ll have several options:
    
   1. Return the vehicle: You can hand the car back with nothing more to pay as long as you've met the mileage condition and terms.
      
      
   2. Refinance the balloon payment: If you’d like to keep your Suzuki for a while longer, you can refinance the remaining amount.
      
      
   3. Settle the balloon payment: Pay the remaining amount and keep your Suzuki.
      
      
   4. Trade-In for a new model: Trade in the vehicle for a new model using the available offers from your dealer.

The balloon payment mentioned in the above b and c options refers to the final sum of money you owe at the end of your finance agreement. The benefit of GFV is knowing how much that balloon payment will be, regardless of market conditions and depreciation rates.

[Watch our video] for a detailed explanation of how GFV works and what options are available for you at the end of the finance agreement.

Keep this in mind:

If your vehicle has exceeded the agreed-upon mileage (the number of km on your odometer) and/or does not meet the fair wear and tear standard, your GFV contract may be rendered null and void (more on this under our FAQs). Always make sure these conditions are clearly stated in your finance agreement. 

Benefits of GFV:

Flexibility and choice

GFV gives you the flexibility to choose what happens at the end of your finance term. Whether you want to upgrade to a new Suzuki, hold onto your current Suzuki, or simply return it, GFV gives you multiple options to suit your needs when the time comes.

Peace of mind

With a guaranteed future value, you don’t have to worry about the car's market depreciation. Even if the market value drops below the balloon payment amount, WesBank will still purchase the car at the agreed price, provided all conditions are met. This also lets you budget for the specific value.

Lower monthly payments

GFV often has lower monthly payments than traditional car loans, making it an ideal option for those looking to drive a new Suzuki without straining their budget. 

Frequently Asked Questions

Q: My vehicle is at the end of its financial term—what are my options with GFV?

A: At the end of your term, you can return your car, refinance the balloon payment, pay off the balloon amount in cash, or trade in your car for a new model. Its all about what suits you best at the time. 

Q: What if I exceed the mileage limit or my car has more wear and tear than expected?

A: The guaranteed buyback value may lapse if your car exceeds the mileage limit or has more wear and tear than agreed upon. You will then be responsible for the final balloon payment, which you can settle in cash, refinance, or cover by trading in the vehicle.

Caring for your car is important, not just for financial reasons, but also to keep you driving safely. Here are some resources to help you keep your ride in tip-top shape: 

• Important Safety Checks For Your Car
• How to retain your trade-in value
• How to keep your tyres in tip-top shape
• [UPDATE] What you can do to protect your cars resale value

You can also Download our guide to extending the lifespan of your car.

Q: How does GFV compare to a balloon payment?

A: Both GFV and balloon payment options involve lower monthly payments and a larger final payment (called the balloon payment). However, GFV offers the additional benefit of guaranteeing the vehicle's future value, adding a layer of financial security and peace of mind.

Choosing to finance your next Suzuki with GFV is a smart and flexible option, giving you the freedom to drive a new Suzuki more often. Whether you’re looking to upgrade your ride or simply want the added financial security, GFV is worth considering!

At the moment, Suzuki Mobility Finance, alongside WesBank, are offering the GFV finance option on the Suzuki Jimny 5-door. Learn more about the Jimny 5-door here.

You can read our blog outlining Suzuki Mobility Finance options for more guidance and chat with a friendly finance manager at your nearest Suzuki dealership or WesBank branch.

Suzuki Mobility Finance, a product of WesBank - is a division of FirstRand Bank Ltd. An authorised Financial Services and Registered Credit Provider. NCRCP20.

Ts&Cs apply and finance is subject to approval.

Want to know how your dream wheels feel on the road? Book a test drive now or Browse our Suzuki Models and deals.