| 2018 Rm |
2017 Rm |
||||||
|---|---|---|---|---|---|---|---|
| 14. | FINANCE LEASE RECEIVABLES | ||||||
| Amounts receivable under finance leases: | |||||||
| Gross investment | 540 | 596 | |||||
| Less: Allowance for doubtful finance lease receivables** | (21) | ||||||
| Net investment | 540 | 575 | |||||
| Less: Unearned finance income | (81) | (76) | |||||
| Present value of minimum lease payments receivable | 459 | 499 | |||||
| Receivable as follows: | |||||||
| Present value | |||||||
| Within one year (note 18) | 248 | 259 | |||||
| In the second to fifth year inclusive | 211 | 240 | |||||
| 459 | 499 | ||||||
| Minimum lease payments | |||||||
| Within one year | 277 | 274 | |||||
| In the second to fifth year inclusive | 263 | 301 | |||||
| 540 | 575 | ||||||
| Less: Unearned finance income | (81) | (76) | |||||
| 459 | 499 | ||||||
| Unguaranteed residual values of assets leased under finance leases | 50 | 36 | |||||
|
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| Long-term vehicle fleet is leased to customers for periods ranging from 15 to 60 months. The average lease term is 41 months and the majority of these leases are at interest rates linked to the South African prime rate. The weighted average interest rate on lease receivables for the year ended 30 September 2018 was 11% per annum (2017: 11%). |