Breaking News | Drastic developments can be expected for South Africa’s aftersales

Drastic developments can be expected for South Africa’s aftersales

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The plans for South Africa’s vehicle aftermarket have been announced by the Competition Commission. The goal of this is to encourage more competition in terms of manufacturing, repairs, insurance and financing. Furthermore, it will also be beneficial in the fact that more historically disadvantaged individuals will also be taken into consideration. These plans will be taken into practice from the 1st of July 2021 and they are as follow:

·         Most buyers are unaware that when purchasing a new vehicle, it typically has a plan (maintenance or service) incorporated into the deal as well as the price. While it is more convenient, some prefer to have third-party plans. This is why it was requested that dealers provide buyers with their vehicle price minus the cost of the plan.

·         Furthermore, a maintenance or service plan should be able to be shifted to a replacement vehicle if an insurer has written of the first. If there is no replacement or the plan isn’t moveable, the buyer should be able to cancel the contract or receive some of the money back. This means that buyers won’t be paying for a vehicle they don’t have anymore.

·         Due to the difficulty of independent businesses struggling to find OEM parts, the commission stated that manufactures should make all parts available for maintenance and repairs except those dealing with the security of the vehicle. It is furthermore beneficial for buyers as they will now have more and affordable options.

·         The commission is worried about sensitive information being distributed or shared. An approved dealership that sells opposing manufactures’ product is not permitted to co-ordinate prices and should rather be decided within the dealership.