Page 1 of 2 12 LastLast
Results 1 to 10 of 11

Thread: Storage fees for vehicle not collected

  1. #1
    New Member
    Join Date
    Nov 2015
    Location
    cape town
    Posts
    9
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Storage fees for vehicle not collected

    Good evening members

    I found this wonderful forum whilst looking for advice on the internet.

    I have a question regarding storage fees of a motor vehicle which I am hoping some of the wise members may be able to comment on with some advice.

    I own a mechanical auto repair shop in greater Cape Town. Around 2 and a half months ago an independent insurance assessor called upon me to assess a vehicle which was repaired by a panel shop following the owner having had an accident. The panel shop neglected to fill the cooling system with coolant/water and as result the owner overheated the vehicle to the extent that the vehicle would not longer drive.

    I was asked to assess the damage and found the panel shop was to blame for the damage caused to the engine. I submitted a report directly to the insurance company and was paid for the assessment and report. Two months down the line and the insurance company had not collected the vehicle. I called the insurance company on friday informing them that the longer the vehicle stands at my workshop the higher the storage fees become. It emerged that they had written the vehicle off and paid the owner out as they deemed it not financially viable to have the vehicle repaired. They also informed me that they refuse to pay for storage and shall send their salvage company to collect the vehicle.

    I told the insurance company representative that there is two months storage fees outstanding on the vehicle and it will not be released until it is paid in full. Our storage rate is R325 per day which is the going rate for vehicle storage in my area as I have called around to the various workshops.

    The salvage company has inform me that they are only prepared to pay R125 per day and only for one week of storage. ( I have calculated the R325 per day based on the fact of running costs of providing storage, that the vehicle is secured in a warehouse with 24/7 security).

    The latest development is that now the insurance company is saying I either except only one week storage at R125 per day or they will not pay anything and shall collect the vehicle with the police as they had not signed any consent to storage fees been paid for however long the vehicle is stored in my workshop. To my way of thinking and I may be under correction but for two and half months they knew the vehicle was at my shop and no company in their right mind would expect another company, (mine in this case), to free of charge store a vehicle and by doing so effect the money earning space which the vehicle occupied for all these months.

    I find myself between a rock and a hard place as it is not in my nature to be hard ass but the insurance company seems to think they can simply get away with not paying for storage. After all it has cost me to store their vehicle and why should I be the looser in the matter. Signage in my company clearly states storage fees of R325 per day on vehicles not collected within 3 days from day of invoice.

    Any input in this matter is most welcomed.

  2. #2
    Gold Member Houses4Rent's Avatar
    Join Date
    Mar 2014
    Location
    Cape Town
    Posts
    761
    Thanks
    7
    Thanked 55 Times in 51 Posts
    Me thinks the police will not get involved as its a commercial dispute? It might be bluff. Best you ask your layer I guess.
    Houses4Rent
    "We treat your investment as we treat our own"
    marc@houses4rent.co.za www.houses4rent.co.za
    083-3115551
    Global Residential Property Investor / Specialized Letting Agent & Property Manager

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Tech View Post
    Our storage rate is R325 per day which is the going rate for vehicle storage in my area as I have called around to the various workshops.
    And I thought parking at an SA airport was expensive!
    The trouble with opportunity is it normally comes dressed up as work.

  4. #4
    Email problem Phil Cooper's Avatar
    Join Date
    Nov 2010
    Location
    Midrand
    Posts
    644
    Thanks
    0
    Thanked 170 Times in 118 Posts
    You are entitled to charge a merket-related fee, and Insurers must pay you.

    You can refuse to release until paid.

    May I guess that the Insurer is one of the Direct insurers?

  5. #5
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,328
    Thanks
    38
    Thanked 561 Times in 410 Posts
    Blog Entries
    7
    They need a court order to take possesion, so no police can take.
    A charge of theft is not on, given that there is not an intention to keep it forever.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  6. #6
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,328
    Thanks
    38
    Thanked 561 Times in 410 Posts
    Blog Entries
    7
    I would suggest a counter offer. Perhaps a letetr that the police and that rubbish does notbscare you.
    However, in the interest of an amicable settlement, younare prepared to, accept the am8unt of R125 but for the full 2 months.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  7. #7
    Diamond Member adrianh's Avatar
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    5,089
    Thanks
    336
    Thanked 808 Times in 642 Posts
    I don't think that they want the car back.
    Last edited by adrianh; 25-Nov-15 at 06:20 AM.
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

  8. #8
    Email problem Rafael's Avatar
    Join Date
    Oct 2012
    Location
    Johannesburg
    Posts
    129
    Thanks
    8
    Thanked 29 Times in 20 Posts
    R325 a day I may get into the business of storing cars
    You miss 100% of the chances you never take

  9. Thanks given for this post:

    adrianh (25-Nov-15)

  10. #9
    New Member
    Join Date
    Nov 2015
    Location
    cape town
    Posts
    9
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Many thanks to all members who have replied with advice.

    R325 per day may sound like a large amount but in fact is a very fair price. People thinking storage of a vehicle is merely having an open space to park a vehicle in. However many fail to see the costs involved such as in my case: Building rental R24 100 per month, 24/7 security guards at R21 380 per month, Insurance of all vehicles stored in building R10 880 per month, complex levies R1 100 per month, Electricity around R 1 800 per month, water around R600 per month, Telephone around R1 000 per month. Around R 60 000 per month running costs. Almost R2000 per day 30 days of the month running costs, divide by 14 vehicle spaces. So no it is not that profitable storing vehicles and then having to fight to get paid.

  11. #10
    Gold Member
    Join Date
    Mar 2012
    Location
    Vanderbijlpark
    Posts
    886
    Thanks
    83
    Thanked 381 Times in 298 Posts
    And loss of income from occupied space

Page 1 of 2 12 LastLast

Similar Threads

  1. [Question] Late Payments: Interest fees, Handling fees, Collection Costs, Service fees
    By ACEsterhuizen in forum Electrical Contracting Industry Forum
    Replies: 10
    Last Post: 28-Feb-15, 02:38 AM
  2. [Question] Renewing your vehicle licence when the vehicle is registered to a business
    By Musiclover08 in forum General Business Forum
    Replies: 1
    Last Post: 03-Jan-15, 06:37 AM
  3. CCTV remote video storage
    By daveob in forum Technology Forum
    Replies: 4
    Last Post: 11-May-12, 03:04 PM
  4. [Article] How to build cheap cloud storage
    By SilverNodashi in forum Technology Forum
    Replies: 0
    Last Post: 08-Jan-10, 06:10 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •