Sambra calls for laws to protect used car buyers

The SA Motor Body Repairers’ Association (Sambra) has called on the government to introduce a law that legislates the code status of used cars, allowing consumers to buy pre-owned vehicles with confidence. The association says it would prevent previously written off, and potentially unsafe, cars finding their way back onto the market.

Adding legislation to define and legislate the code status of vehicles, which could be uploaded and housed on the existing Electronic National Traffic Information System (eNaTIS), was potentially the only way to manage the historical record of a vehicle and open this information to the entire car parc and not just the 30% insured segment of the vehicle population, said Sambra chair Dev Moodley.

Sambra had for years lobbied for the SA Insurance Association (Saia) to make its vehicle salvage data (VSD) information available, as well as a publicly accessible write-off register in the form of a VIN check that consumers could access to make informed decisions before buying a used car.

It was to help mitigate consumers unwittingly buying potential death traps that had been severely damaged in accidents and returned to the road. Insurers routinely write off vehicles deemed uneconomical to repair and these vehicles are sold on auction. Some of these vehicles are bought by dubious repairers and sold to unsuspecting buyers as code 2 (the description for a used car) instead of being reclassified as code 3 (rebuilt). Some vehicles have serious defects and the purchaser has no way of checking the history.

In September 2023 Saia made available a VIN Look-Up tool, which is free to members of the public, but does not list code 2 vehicles that had been deemed uneconomical to repair. Saia said it would not provide this information to the public as this would compromise dealers who buy these vehicles and safely undertake repairs to the manufacturer’s specifications.

The other problem is these cars are not repaired and are sold on and can be bought by hijacking syndicates who rebirth them under new identities. The VIN and engine numbers on the stolen or hijacked vehicle are changed and replaced by the written off vehicle’s papers and the scrapped licence plates are used on the stolen car.

“Lack of access to the complete history of a vehicle from cradle to grave is hindering efforts by industry players to establish transparency and disclosure in the market,” said Moodley.

“For years Sambra has been lobbying for an open and transparent VSD to be made available to not only the public but all stakeholders, including dealers, banks and insurers. We are concerned that efforts to resolve the problem are only focusing on one element of the value chain. Efforts should be focused closer to the source, so informed decisions can be made and a full life history of a vehicle can be checked.”

Chris Prinsloo, an independent specialist, said as soon as a vehicle came off the assembly line and was wholesaled to a dealer, a record needed to be kept that spanned across the retail chain so further down the line any new purchaser or financier or insurer would have access to the information, including the accident history, to accurately value the vehicle and prevent previously written off, and potentially unsafe, vehicles finding their way back onto the market.

The VIN Look-up Tool was a good start but without all vehicle data was not as effective as it could otherwise be, nor were the eNaTIS records complete, said Sambra. 

There is an opportunity for SA to assess what was working best around the world.

Brandon Cohen, chair of the National Automobile Dealers’ Association (Nada), agreed, saying the motor industry, in its welcome to the new minister of transport Barbara Creecy, flighted the idea of legislating the codes.

From an implementation perspective, one could look at following the UK model where the vehicle codes were legislated (from new to used to insurance write-offs to irreparable vehicles). Write-off categories are also legislated for vehicles, for example:

• A code A cannot be repaired and the entire vehicle needs to be crushed;
• A code B cannot be repaired. The body shell has to be crushed but you can salvage other parts; and
• A code N where the vehicle can be repaired after non-structural damage so you can use the vehicle again provided it is repaired to a roadworthy condition.

“Not only is this approach transparent but it will ensure information is available at the correct time to the relevant body in the value chain — whether that be a bank, insurer, motor body repairer, dealer and/or end customer,” said Moodley

“It will prevent the current scenario where written-off cars that have been poorly repaired are being refinanced and reinsured in many cases and consumers are being sold these vehicles without the correct information.”