KUALA LUMPUR (June 8): My EG Services Bhd (MyEG) has launched Volvo Car Leasing, a leasing service that will let customers enjoy stress-free Volvo ownership, minus the usual financial strain of a hire-purchase agreement.

In a filing with Bursa Malaysia today, MyEG said the launch follows the Leasing Service Agreement signed between its sub-subsidiary My EG Finance Technologies Sdn Bhd (MyEG Fintech) and Volvo Car Malaysia Sdn Bhd on May 2.

“The agreement has no fixed value and it is dependent on the number of customers who take up the service. The agreement shall commence upon signing and shall continue unless and until terminated by either party by giving 90 days' written notice,” it said.

In a separate statement, Volvo managing director Lennart Stegland said Volvo Car Leasing is the first for Volvo Cars in Southeast Asia and it offers customers an opportunity to drive a Volvo, worry-free with the insurance, road tax, maintenance cost and warranty covered.

Towards the end of the leasing agreement, customers can either choose to select a new model to drive home, purchase the car at market rate or Future Guaranteed Value (FGV), or simply return the car to the dealership.

“Now with Volvo Car Leasing, our customers are able to choose an appropriate model based on their current need or station in life and change it when the need arises,” said Stegland.

Meanwhile, MyEG Fintech chief executive officer Justin Cheah said Volvo Car Leasing also allows customers greater financial flexibility compared to a typical hire-purchase agreement.

“Based on our calculation, a customer could potentially save more with this leasing programme compared to a hire-purchase agreement.

“At the end of the lease, the customer can renew the agreement and drive home a brand-new unit of the same model or opt to upgrade his lease agreement with a different model,” he said.

The programme will be available for all Volvo models sold in Malaysia, at all participating dealerships. Customers can drive home a new Volvo from as low as RM2,762 per month which is inclusive of a comprehensive insurance package, road tax, and maintenance cost.

In conjunction with the launch of Volvo Car Leasing, all models will be offered with a promotional rate that is applicable from today till Aug 31. Volvo Car Leasing will also be offering free petrol vouchers worth RM300 for all bookings received within this promotional period.

At the closing bell today, MyEG rose seven sen or 9.62% to 85 sen, giving it a market capitalisation of RM3.04 billion.