ON-THE-ROAD FEES : Court rules car financiers allowed to add extra costs on to purchase agreements

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BMW, Mercedes-Benz and VW Financial Services have won on appeal, which now gives dealerships the green light to charge extra to prepare vehicles for sale.

, the Pretoria High Court ruled in favour of the three financiers, finding that the charging of OTR fees did not offend the provisions of the act.The three financiers denied charging OTR fees and other pre-delivery services, saying the dealers were doing so to ensure that vehicles were delivered to the consumer in a satisfactory manner.

He said the conundrum in the NCR’s interpretation is that the financiers become the owners of the vehicle upon purchasing the vehicle from the dealer, when it is the consumer who negotiates the sale and specifications with the dealer. The NCR, which urged the court not to grant a costs order against it in the event its application failed, because they were merely fulfilling the statutory obligations, lost on that count too.

 

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