The internet and social media have opened the door to a countrywide marketplace for those dealers prepared to deliver away from their premises.

"Away” deliveries have become part of our daily lives and make up a great part of our monthly sales. Buyers feel more secure in the buying environment - due to the protection that legislation now affords them - and are therefore more open to the idea of buying over a distance.

You, as the dealer, must understand that the same legislation that protects the client can be detrimental to you if the procedures for away deliveries are not followed correctly.

FICA process

Firstly, it is basically impossible to do the FICA process until you are face to face with the client at delivery. Please do not send a member of staff that is not fully qualified to inspect the ID and driver’s license. Do not even except validated copies by the SAPS if the originals are not present at point of delivery.

Contract must be signed on dealer’s floor

Secondly, do not sign any contract anywhere other than on a dealer’s floor - that has an agent’s agreement with the particular bank or the premises of the said bank. If the contract is signed anywhere else, the cooling off period comes into effect. The client can then cancel for no reason at all, even for having buyer’s remorse.

Insurance products

If any insurance products are included in the transaction, a registered representative under your FSP must be present during the delivery to execute the necessary FAIS compliance and disclosures.

With the average ticket value of your vehicles being close to R 200 000, think of it as giving one of your staff a bag full of money for the same amount of your vehicle and the necessary precautions you would take to ensure the proper delivery of such a bag full of cash.

Sales and trends within the IDA environment for April 2016

Top 5 passenger vehicle sales per manufacturer

VOLKSWAGEN
FORD
TOYOTA
BMW
NISSAN

Top 3 commercial vehicle sales per manufacturer

RANGER 2.2 TDCI XL P/U D/C
NP200 1.6 P/U S/C
UTILITY 1.4 A/C P/U S/C
Top 10 derivatives sales
FIGO 1.4 AMBIENTE
POLO 1.4 COMFORTLINE 5DR
POLO GP 1.2 TSI COMFORTLINE (66KW)
RANGER 2.2TDCI XL P/U D/C
POLO VIVO 1.4 TRENDLINE 5DR
ECOSPORT 1.5TIVCT AMBIENTE
NP200 1.6 P/U S/C
POLO VIVO GP 1.4 CONCEPTLINE 5DR
POLO GP 1.2 TSI TRENDLINE (66KW)
GOLF VI GTI 2.0 TSI DSG

The average age of vehicles sold in April was 3.84 years.