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Consumer Protection Act

Much has been written about the CPA; its effects on business and consumers alike. Reading the Act is a major undertaking as it covers some 480 pages. We made a point of studying the parts which affect the used vehicle industry. In this article I will explain in simple terms how the CPA will affect you in terms of buying and selling motor vehicles. The media has made a meal of the Act in that in many ways they have misled the public into believing they can return a car to a dealer within 6 months of purchase under almost any circumstance. I receive approximately 30 calls for assistance in connection with CPA issues each week and I have been appalled at the levels of misperception. What the (the media) have singularly failed to do is explain under which circumstances this may happen and what the ramifications…

The "Cash is King" Myth

This particular topic is one of the most misunderstood issues in modern business practices. The inevitable question from purchasers is "What's your best cash price?" Our historyFifty years ago, some businesses used to run a "book". In very simple terms, that would typically have been your local grocer and he would literally have a book that he would write up daily purchases in with a page for each of his customers. Any family member could pop in to his shop and buy bread, milk and assorted groceries. These would then be scribbled into his book and the father or mother of the family would then be expected to settle up the total at the end of each week or month as agreed. I suppose if one thinks about it, that would have been the first unofficial credit card, albeit it in an unsophisticated manner. There was no…

Auctions - How safe is it?

Why, you might ask, do certain people get attracted to buying at auctions? Why would anyone want to a buy a car where he is not allowed to take it for a test drive and is given very little time to pre-examine the goods?Perhaps if we all applied a little common sense it would become obvious that 95% of cars that end up at public auctions are one of the following: Repossessed cars Accident damaged cars Stolen and recovered cars Cars from dealers that they cannot get sold. So why do people like to buy at auctions? Because they think they are going to get a bargain. So who, you might ask, would want to buy a repossessed car? If the owner could not afford the repayments, he most probably didn't service it either. I am not even going to discuss accident damaged or stolen cars. The final…

Approved Used Car Dealers

For many years I have been thinking about setting up a website for approved used car dealers. The problem has always been – approved by who? And by which standards?  Well heres a site selling second hand cars that I approve of. Now finally, I can list dealers here who (in my opinion) meet the criteria of honesty, quality pre and after-sales service and integrity in their business dealings.  During 2011/2012 a group of like minded dealers got together to form a unique group. They called themselves the Blue Chip Dealers and launched their own fully searchable, state of the art website in August 2012. No dealer can buy their way into this group. It is strictly by invitation only and based on a 100% corum vote. These dealers have all been around a long time, have a lot of goodwill and support each other in business dealings. This would be…

After Sales Complaints - How to...

If you have bought a car from a dealer and you need to return with any complaints, I strongly recommend that you read your warranty properly before doing so. That will give you a clear understanding of what is, and what is not covered under your warranty and what your rights are. Most of the 30 day warranties will cover engine, gearbox and diff only. So, for example, if the CD player packed up after a week, that item would technically not be covered. Remember, the dealer wants to keep you as happy as possible, and is probably doing his utmost to give you after sales service over and above the terms of warranty. Take into consideration the age and mileage of the car you have bought and ask yourself if your demands are fair and reasonable - more importantly, are they covered under the warranty. When returning…

Accessories

This is bound to be controversial. I have decided to raise this as a topic, as it really concerns me to see how much money is wasted on accessories. So, you think your car looks cool with a lowered suspension, tinted windows, mag wheels, a boot fin, racing pedals, an amp and speakers powerful enough to cause an earthquake, tweeters, skirts, air dams, one of those chromed after market filters under the bonnet and a fake metal petrol cap. All that stuff would have cost you several thousands of Rands . You have also substantially devalued your pride and joy by approximately double that which you have spent. So you think I'm kidding? Well, I'm not. Accessorising a car is the quickest possible way of devalueing your car. Dealers look for cars that are as factory standard as possible. And they will pay book value and often…

AA Reports

What exactly is an AA report and who owns the company? Everyone knows what an AA report is, but how does an AA report fit into buying a used car? Firstly, let me explain that the AA is a non-profit organization, who do not have any shareholders. I will get back to AA reports in a moment. First we need to understand some legalities. There are three basic ways to buy a car. Cash as its stands with no warranty and no roadworthy certificate. This is usually restricted to the lower end of the price spectrum and cars bought at auctions. Cash with a roadworthy certificate. Financed with RWC and a limited warranty or an after market extended warranty. Which option will suit me best? OK, so what is the best way to buy? It all depends on your individual circumstances. For example, if you are an…
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