On-the-road fee

In what could have widespread repercussions for South Africa's motor industry, the National Credit Regulator (NCR) has ordered BMW Financial Services to refund car buyers the on-the-road fee they were “illegally” charged.

The fee, also sometimes referred to as a service and delivery fee, is commonly added to vehicle finance agreements and ostensibly covers things like a pre-delivery check‚ valet‚ and fuel.

However, the NCR says this is an illegal fee that’s not permitted to be charged on credit agreements by the National Credit Act.

An on-the-road fee usually costs between R3000 and R6000, and is over and above the fee charged by dealers for getting the vehicle licensed and registered.

“The Compliance Notice instructs BMW Financial Services to refund consumers and submit an audit report to the NCR. The National Credit Act allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements,” said Chief Executive Officer at the NCR, Nomsa Motshegare.

“Consumers should request this quotation from their credit providers so that they can properly check the cost of credit that is being offered.”

The NCR didn’t state what prompted the action on BMW specifically, but Motshegare said the NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged. This means more car brands could be in the firing line.

It is not known how many BMW owners are affected as the NCR notice didn't specify how far back the order is effective, but BMW South Africa says it disputes the regulator’s claims and will be objecting to its notice.

"The on the road fee is a fee agreed to between the dealer and the consumer," says a BMW SA spokesman.


https://www.iol.co.za/motoring/indu...d-to-refund-illegal-on-the-road-fees-11505423
 
"The on the road fee is a fee agreed to between the dealer and the consumer," says a BMW SA spokesman.
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Which it seems is illegal, so it does matter whether it was agreed upon or not.
 
thechamp said:
Which it seems is illegal, so it does matter whether it was agreed upon or not.
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Most purchase transactions would go like this: "Listen bud if you want to buy the car then you have to pay the fees. If you are not prepared to pay these fees then you can't buy the car."

No agreement, rather conditional selling.

It would appear that this matter only applies to 'credit sales' and not 'cash' deals.
 
Azrael said:
Thanks for the input guys, we got them down to R600! Crazy what these guys try and get away with!
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Well done. I do not pay for license and reg or admin or delivery charges. it's a rip-off and I tell the salesperson it ain't happening. Usually they say it's cool. there are times when they try to haggle and that's when i tell them 'thank you' and get and then you see how quickly their tune changes
 
When I bought a new Honda in 2014, the dealer quoted R4000 for "on the road". I told him I would do it myself. The excuses ranged from "it is illegal" to "you cannot drive an unlicensed car on the road", to "we are empowered by Honda to personally see to all new vehicles", to it will take too long". I insisted to the extent that they threatened to cancel the sale

So I walked out. The sales manager came running after me saying he would make a plan

The dealer gave me the car's papers. Missing from the paper was the VIN number and an incorrect engine number. Did they do this deliberately? I do not know, maybe they thought I would not check
I took the licensing papers to the local council office, this took about 45 mins, cost was R445,00
Around the corner is a number-plate place, cost was R130,00. This took 15 mins
Back to the dealer, gave him a POP for the price of the car

The whole exercise took about 90 mins and cost me R575,00 plus about 15km travelling
 
I just bought a car and the place doesn't do on the road costs. I have to road worthy it and register and licence it in my name. Which I am fine with. No hassle.

Hopefully I am not screwed over in some other way!
 
The Philosopher said:
I just bought a car and the place doesn't do on the road costs. I have to road worthy it and register and licence it in my name. Which I am fine with. No hassle.

Hopefully I am not screwed over in some other way!
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Used? Some used car dealers don't do the registration for you as in your case, the price you see is the one you pay, I don't mind paying for registration as dealing with licensing queues is not my thing, there's a difference though between paying for a service and getting ripped off.
 
Hmm I wonder if this will apply on my VW that I bought from BMW.

Alphera = BMW Financial Services right?

How far back would this go?

I do seem to recall they were “discounted” away. Will need to find the docs to check exactly how it was setup.
 
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The Philosopher said:
I just bought a car and the place doesn't do on the road costs. I have to road worthy it and register and licence it in my name. Which I am fine with. No hassle.

Hopefully I am not screwed over in some other way!
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Sjoe! Isn't that taking a bit of a chance?
 
The Philosopher said:
I just bought a car and the place doesn't do on the road costs. I have to road worthy it and register and licence it in my name. Which I am fine with. No hassle.

Hopefully I am not screwed over in some other way!
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Fsck that... they can do all that shyte if they want to sell me that car.. and not charge me an additional fee for it
 
The Philosopher said:
What do you mean?
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You have to road worthy it. So the examination for roadworthiness can find some serious and very expensive faults like oil leaks, clutch slipping, brakes. If you have to roadworthy it as you have stated then you'll have to foot the bill.
 
I have found helping other people to buy used cars privately, where you as the buyer are responsible to get a roadworthy, it is worthwhile to tell the seller that you will buy the car, but should the inspection reveal faults that you have not picked up, he will see to the repairs. If the car is a substantial sum (say over R60k) then I have found the seller agreeable. If they hum and haw and prevaricate, walk away as they may have had some bad news about the car they did not divulge to you

You then take the car for its inspection and accompany the inspector as he does his routine, impressing upon him to be severe with any apparent defects. I have known them to remove a front wheel to inspect the brake-pad depth, listen to the engine to detect things like water-pump, loose tappets, piston-slap. A R200 note while you are in the pit with him works wonders. One inspector picked up a badly done body repair, another found a nearly worn-out silencer.

You can of course elect for a full inspection, but this is much more expensive
 
Credit regulator orders VW to refund customers ‘on-the-road fees’

Volkswagen (VW) must refund customers "on-the-road fees" and other charges added to its vehicle finance agreements, the National Credit Regulator said on Tuesday. This echoed a similar statement the regulator issued to BMW Financial Services SA on October 6. The regulator accused both car companies of sneaking hidden fees into the small print of their vehicle finance deals, and indicated other lenders are likely to receive similar notices as its investigation continues.

Besides "on-the-road fees", the regulator also ordered the vehicle financing arms of VW and BMW to refund admin and handling fees.

https://www.businesslive.co.za/bd/companies/transport-and-tourism/2017-10-24-credit-regulator-orders-vw-to-refund-customers-on-the-road-fees/
 
IMO there should not be any On The Road fees or license and reg. fees.
A dealer cannot sell us a car that cannot be ON THE ROAD. The price that is advertised is the price that we should pay. No add ons.
Dealers can't sell us a car that is not roadworthy, this also mean that it has to be licensed and have a license plate. It should also have at least enough fuel to get us to the nearest filling station.
Dealers also say that the PDI (pre-delivery inspection) fees are included in the OTR fees. How can they not do the PDI before selling the car???
The gift is a waste.
All these are just my opinions.
I wish Carte Blanche investigates this BMW issue further
 
Zyk1 said:
IMO there should not be any On The Road fees or license and reg. fees.
A dealer cannot sell us a car that cannot be ON THE ROAD. The price that is advertised is the price that we should pay. No add ons.
Dealers can't sell us a car that is not roadworthy, this also mean that it has to be licensed and have a license plate. It should also have at least enough fuel to get us to the nearest filling station.
Dealers also say that the PDI (pre-delivery inspection) fees are included in the OTR fees. How can they not do the PDI before selling the car???
The gift is a waste.
All these are just my opinions.
I wish Carte Blanche investigates this BMW issue further
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I agree 100%.

I just checked my last invoice - was charged for license and reg only, but they wouldnt budge on that
 
Good old technique, find any way to load the price after the fact and make it sound legit.

Also used in negotiations, sorry we can't budge on the price but hey I spoke to my boss and we never do this, he said he'll make an exception just for you - we'll waive the on the road fee's but that offer is only till the end of the day. Not bad hey, can I get the paperwork ready to sign?
 
Illegal charges still being added to vehicle finance contracts

When the National Credit Regulator announced recently that it was unlawful for an “on-the-road fee” to be included in vehicle finance contracts‚ and ordered BMW Finance and VW Financial Services to stop doing so and refund those who’d been charged it‚ motorists across the land rejoiced and looked forward to a refund of that fee. But it appears to be business as usual at dealerships across the land‚ with extras such as a pre-delivery checks‚ valets and admin fees continuing to be added to finance agreements‚ while both BMW and VW have objected to the so-called compliance notices served on them.

“(We) will continue to conduct industry-wide investigations .. to root out illegal charges and fees that consumers are charged‚” the regulator said in October‚ urging consumers to refuse to have such extras loaded on to their finance agreements. But the various banks’ representatives - many of them based in dealerships - are still adding the “forbidden” fee to the contract; usually between R4‚000 and R5‚000 on cars with a purchase price of under R200‚ 000 and more for the higher end cars.

Finance agreements may include an initiation fee‚ an extended warranty‚ the cost of delivery - if the buyer doesn’t collect the car themselves - plus a tank of fuel and licence or registration fees‚ provided those costs aren’t padded‚ the regulator says. But the National Credit Act doesn’t allow for the other extras which have for years made up that “on the road” fee.

When Michelle Reinhard asked a dealership for a quote on a Suzuki Swift last month‚ it featured an on-the-road fee of R3‚250‚ which included a licensing and registration fee of R1‚000. “I said I would pay the licensing fee in cash and asked for a breakdown of the rest‚” she said. That breakdown included checking the car (R1‚600)‚ a transaction fee to cover “administration involved‚ phone calls‚ expenses” (R1‚000‚ excluding VAT)‚ car mats (R730)‚ number plate holders (R150) “service pouch with service books and owner’s manual” (R450) and a R70 key ring.

https://www.timeslive.co.za/news/consumer-live/2017-12-06-illegal-charges-still-being-added-to-vehicle-finance-contracts/
 
Lol, the keyring marketing the dealers logo isn't even free, you pay for it and it's mandatory, what a scam these on the road fee's are.

And how can the service books and owners manual with pouch not come with the car from the factory, and not be included in the price of a new car?

Next thing they'll be including wheels and tyres in the on road fee, because cars are delivered on bricks to the showroom floor :crylaugh:
 
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