Prince* bought a second-hand car from a dealership. The car cost him R200 000 – a price they had agreed on. But when he went to the dealership to fetch his car, all of a sudden there were all kinds of extras that the dealer tried to charge him for. These extras were already part of the vehicle, but the dealer said Prince had to pay an additional R20 000 for them. AZIKHIPHI! That’s not on! The extras were already part of the car. Does Prince have legal recourse against the dealer?
Scorpion Legal Protection’s advice
The dealership cannot charge Prince for extras on the vehicle that were already part of the vehicle. Car dealerships and their financing partners try their luck by doing this, but the National Credit Regulator (NCR) says that these charges are not allowed for in the National Credit Act, and urges consumers to refuse to pay them.
What often happens is that dealers charge an ‘on-the-road fee’ over and above the cost of the car. It’s also called a ‘dealership fee’ or ‘service and delivery fee’, and they claim it’s for extras like pre-delivery checks‚ valets and admin. The cost can be anything from R4 000 up – as in Prince’s case. It is unlawful to add charges like these to car sales agreements.
What they CAN charge for:
- Initiation fee
- Delivery fee (only if the car is actually delivered to you, not if you went to fetch the car yourself)
- Fuel – the actual cost of filling the tank
- Licence and registration fees – the actual cost of getting licensing and registration done for you
What they CANNOT charge for:
- Pre-delivery inspection
- 20-point check
- Valet
- Client ‘gifts’ (like the big bow on your car or flowers, etc.)
- Key ring
- Manual and service book
- Admin
- Removing the shipping protection
- Permits
This is a breach of the credit agreement. Prince can take the matter up with the dealer, and refuse to pay for the extras. If the dealer insists on the charges, Prince can refer the matter to the NCR, who will then investigate the complaint.
Tips:
- Always read through your sales agreement carefully – charges could be hidden in the fine print.
- You have the right to ask what exactly you’re paying for. If a dealer wants to charge a ‘service fee’ or the like, you can insist that they explain and break down the exact things you’re being billed for.
- If you have a similar complaint, you can contact the NCR on complaints@ncr.org.za or talk to Scorpion Legal Protection if you are member.
Scorpion members have access to our 24-hour Legal Contact Centre and can call us anytime, anywhere for paralegal services. They have peace of mind knowing that, when trouble strikes, they’ve got access to lawyers to represent them in court and help them strike back legally.*
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* Terms, conditions, limitations and exclusions apply (click here to view the Legal Membership Agreement). This is only basic advice and cannot be relied on solely. Names have been changed to protect identity.