Dear Member,
Justifying additional costs
I recently had a discussion with a consumer “watchdog” about additional costs or charges when buying a pre-owned vehicle.
The most important principle here is to be able to justify costs or charges, be it for roadworthy, licence and registration (if not shown separately, if separate actual cost not Vatable), number plates, (where necessary), refuelling, labour (drivers and Q agents), admin or any costs deriving from a request by the customer.
All the above-mentioned costs or charges must commensurate with the actual service that was delivered (Fair market value and TCF).
All costs, charges and the notices are referred to in different pieces of Legislation and the Codes thereto i.e. the National Credit Act, Section 102 (1)(a)(c)(d)(e) and the Consumer Protection Act, Sections 23,49 and 51.
The most important consideration with regards to any costs or charges is that you must disclose the price of your Goods or Services to your customer, in this case, your service charges. This must be disclosed by way of a notice where the price for that service is adequately displayed to an ordinarily alert consumer.
Make sure that these costs also reflect on your Offer to Purchase documentation.
I am aware that these costs or charges vary from dealership to dealership, but you must be able to justify the cost in case of an enquiry or a complaint.
Many happy deliveries,
Robbie Starke
General Manager: IDA |
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