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:
- Roadworthy
- License and registration
- Finance and administration cost
- Pre-delivery check - done prior to roadworthy
- Delivery fee - when collection is not from dealership’s floor.
- 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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