NCR's take on charging an on-the-road fee

At a recent meeting with the Regulator, the industry was advised to place a notice on the dealership’s floor that displays a breakdown of how the fee is calculated.

The ruling was made by the National Credit Regulator, as indicated in the publication dated 5 October 2017.

The National Credit Act clearly states that an on-the-road fee must be disclosed to customers when signing the Offer to Purchase / Pre-agreement and Contract. The said fee must also be “justifiable” and “fair”, otherwise resulting in a refund to the client or finance house.

Related costs:

  1. Roadworthy
  2. License and registration
  3. Finance and administration cost
  4. Pre-delivery check - done prior to roadworthy
  5. Delivery fee - when collection is not from dealership’s floor.
  6. Fuel expense up to and including delivery (actual cost)
A meeting with your sales staff is required to ascertain whether your on-the-road fee charged falls within the scope as prescribed by the NCA.

We expect that financial institutions will follow suit and start monitoring the fee your dealership charges on transactions – as they are also required to adhere to the Act.

Please read the full article here, as this will have a direct impact on your business.

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