Thoughts on "compulsory charges" when buying a car

Wong

Well-Known Member
Joined
Feb 4, 2009
Messages
278
Reaction score
0
Im looking at getting a FisT

I was told by their finance lady that these are apparently compulsory

SERV & Del: R4600
Lic & Reg: R1500
2 in 1: R2000 - some polish they do on the car

thats an extra 8k out of pocket which to me seems very excessive is this the new norm ?

your thoughts ?
 
This just feels wong to me... Cant you negotiate that they cover those as part of the sale?
 
License and reg is almost acceptable, as dealers aren't allowed to make a profit on that and that's around what their subcontractor would charge. If it's a financed car it is further the dealer's responsibility to furnish the bank with papers in their and your name, so they're not likely to budge much on that.

Service and delivery will fund backroom staff, valet charges, delivery gifts and fuel and the like... supposedly. You're well within your rights to ask for a breakdown of the fee, but even without doing that you'd be forgiven in assuming that a fair chunk of that amount is smoke and mirrors profit for the dealer. It is somewhat situational in that, depending on the discount or trade-in assistance you may have received, it could represent a fair percentage of the dealer's total profit on your transaction. Doesn't make it any less annoying; I'd much rather dealers be upfront over their need to retain a margin than giving most of it away and then trying to recoup the lost profit with silly fees.

The 2-in-1, or polish, is nice to have done on a car if it's done well - your car will come out of there shiny and smooth like a baby's bum. But it's not worth R2k. You could have your car professionally glazed for around half that. A 'compulsory' polish on the car? Pull the other one...

I say this with nearing 15 years in the car game: these fees grate me to no end. It's become acceptable practice, but no other industry has the gall to ask for any money in addition to the advertised price. You don't pay an ink fitment fee for your printer at Incredible. You don't pay a packaging fee at Pick 'n Pay once your trolley's been loaded up. It's downright predatory. Again, the licensing fee I get... R1.5k is a reasonable fee for not spending an entire day in queues at the licensing offices. The rest is questionable at best.
 
So what a friend of mine did was go to a certain Korean car dealership here in Cape Town and asked about a certain car and asked "How Much". Got the price and then went to another branch of the same manufacturer here in Cape Town and said "Look what this branch wants to charge me". The new dealership said "No we can halve that". He then went back to the original dealership and met with a new sales person and said "Why can Dealership B charge me this, but Sales Assistant A at this branch charges me this price". The new sales assistant removed those "on the road" costs and a slight discount on the purchase price.

Moral of the story: Go compare figures with other dealerships of the same manufacturer.
 
I went and got a new licence for my new car (R450,00) a set of plates (R260,00) and came back to the dealer, who very reluctantly put them on (I mean it took the best part of 2 mins and they didn't even rivet them on). My part of the job took about 2 hours and the number-plate place is 100m from the licensing office in Wynberg, Cape Town

I subsequently found from the dealer that his principal said they must stop this sort of practice on the grounds that it makes them look like chisellers

Why should a new car require "Diamond Wax" finish for R2000? I don't mind washing the car as whatever they apply to the paint, the car still needs cleaning now and again
 
I just rechecked my email a few days ago the sales guy sent an OTP to me from another customer our surnames are close so I could see how that could have been an accident :)

On this guys OTP Serv and Del is R3.5k and Licence is R1k ( this is not to bad) and no 2in1

Waiting on the sales guy to talk to his manager - if he comes back with some bs will mention the above and see what happens from there

Thanks for the input so far
 
It's extortion forcing you to pay for a wax job.

Contact the ombudsman and secure your rights.

Surprised theres no "on the road" charges.
 
On the other side of this.... I tried to do a private deal a few months back and still ended up paying all these fees. Banks insist on doing them as well. Unless ypunarw buying cash it is going to cost R6500+.
 
On the other side of this.... I tried to do a private deal a few months back and still ended up paying all these fees. Banks insist on doing them as well. Unless ypunarw buying cash it is going to cost R6500+.

Bollocks... Its not...

I've done my fair share of private financed deals, and there were never any additional charges forced on me by the bank. You must have used a middleman "fixer" who then tacks on these fees.
 
Default Re: "On the Road Costs" what does this mean?
Multi Franchise Imperial Northcliff today quoted me R6900 !!!!!!!!!!!!!!

Would not drop below R5000 so they lost a quick cash deal. Would of sold a car at a profit. Bought a car to sell at another profit. Had ± R70,000 in their bank immediately.
 
Bollocks... Its not...

I've done my fair share of private financed deals, and there were never any additional charges forced on me by the bank. You must have used a middleman "fixer" who then tacks on these fees.

Wesbank use a middleman called I seem to recall Titledeed that does all the accident checking and registration transfer and all that for you.

But it’s nowhere near R6500.

More like R1000 and was well worth it for them doing all the running around.
 
Top
Sign up to the MyBroadband newsletter
X