Results 1 to 3 of 3

Thread: Navigating the 'extras' minefield

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1
    Silver Member Eugene's Avatar
    Join Date
    May 2007
    Location
    Somerset West
    Posts
    297
    Thanks
    0
    Thanked 6 Times in 6 Posts

    Navigating the 'extras' minefield

    The National Credit Act (NCA) states that credit granters may charge an initiation fee of no more than R1140 and a monthly service fee of no more than R57 but the motor finance houses are simply applying these maximum amounts routinely.

    Many car salespeople are implying that the charges are mandatory.

    Kagiso Kgasi, a legal adviser with the National Credit Regulator, pointed out: "We had to put maximum allowable fees in the act but the intention was for consumers to compare quotes from various dealers and negotiate."

    So, if you are made to pay an initiation fee, you have to be given the option of paying it separately so that it doesn't inflate the amount being financed over four or five years.

    As for the "delivery" fee allowed by the NCA, motor dealerships routinely added this to a contract, even though in most cases they don't actually incur any delivery costs - their clients make the journey to the dealership to collect their new purchase.

    Full article on: http://www.motoring.co.za/index.php?...icleId=4125319

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by Eugene View Post
    As for the "delivery" fee allowed by the NCA, motor dealerships routinely added this to a contract, even though in most cases they don't actually incur any delivery costs - their clients make the journey to the dealership to collect their new purchase.
    I've negotiated on that delivery fee before, with mixed results. The normal excuse is it is for the pre-delivery inspection, licensing and the like. Which makes me a little mad on the odd occasion when you take delivery of a brand new vehicle and find it has a fault that could have been discovered on a drive around the block.

    Once we got one with the speedo cable disconnected! Mind you, back in the pre-digital days.

  3. #3
    Suspended
    Join Date
    Nov 2007
    Location
    South Africa
    Posts
    180
    Thanks
    10
    Thanked 29 Times in 21 Posts
    Hi EUGENE
    The maximum initiation fee could be as high as R5000 and banks like FNB charge the maximum.
    In addition they use to charge R5 per month on I bond, Now they could charge up to R50.....most of the banks ow do charge as much as possible.
    In my experience it seems that the NCA just facilitated an increase in charges for the banks

Similar Threads

  1. Tripping through the minefield.
    By Dave A in forum BEE and Employment Equity Forum
    Replies: 1
    Last Post: 28-Jul-06, 04:21 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
  •