The South African Motor Body Repairers’ Association (SAMBRA), a constituent association of the Retail Motor Industry Organisation (RMI), applauds a milestone Gauteng Regional Court judgement in January 2023 finding in favour of a consumer who unsuspectingly bought a previously “written off” car.

The court ruled that in aid of the preservation of the consumer’s right to be informed of the true condition of the vehicle, the dealer in that instance, should refund the consumer the full outstanding financed value of the vehicle plus interest even though the selling dealer was unaware of the fact that the vehicle it had sold, was previously “written-off”.

About The Vehicle Salvage Database

The South African Motor Body Repairers’ Association (SAMBRA), a constituent association of the Retail Motor Industry Organisation (RMI),  has been actively lobbying the South African Insurance Association (SAIA) for a number of years now for the public release of a vehicle salvage database (VSD) that will inform all prospective buyers of used motor vehicles, whether they are private individuals or user car dealers, of the status of the vehicle if it was previously insured.

This will ensure that the buyers of used vehicles have access to, and will be fully aware of, the condition and status of the vehicle they are purchasing and will be able to see if it has ever been in a serious accident and been previously written off by an insurer. The classification of the vehicle should change to a code 3.

This Is What The Codes Mean

There are four status codes for a motor vehicle, as defined by ENatis are:

Code 1 – New vehicles delivered/sold by a dealer to the first owner.

Code 2 – Second-Hand 
Used/preowned vehicles with one or more previous owners/registrations.

Code 3 – Permanently Unfit For Use 
Code 3 vehicles are Code 1 or Code 2 vehicles that have been involved in an accident and which, according to the insurer, are so badly damaged that they are not worth repairing. To the insurance company the cost of fixing the damage would amount to more than the car’s value at that time.

Code 4 – Permanently Demolished 
A vehicle falls into this category when the chassis of the motor has been:
a) Compacted;
b) Compressed;
c) Melted;
d) Destroyed; or
e) Damaged to such degree that it cannot be made roadworthy.

Vin Lookup Not A Viable Solution

After numerous delays from SAIA, and even a landmark Gauteng Regional Court ruling (read article here) in January 2023, finding in favour of a consumer who unsuspectingly bought a previously “written off” car, SAIA finally released in September 2023 Phase 1 of the Vin Look-up. SAMBRA expressed its concern at the time that research from a number of different stakeholders, including its own extensive research, was producing concerning results that the Vin Look-up was not picking up all vehicles which have been previously “written-off”.

As the code 2’s have not been published yet, ‘uneconomical to repair’ vehicles cannot be identified. Equally while access is free, it is limited only to individuals and not to commercial entities. The number of searches is also restricted to only 5 searches per individual, per month.

Vehicle Salvage Database News

Find news articles relating to the Vehicle Salvage Database (VSD).

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SAIA Deny Consumers Access To Code 2 Vehicles Finally In April 2024

SAMBRA received a response from SAIA re the publication of Code 2 vehicles. The letter received from SAIA states, “after extensive internal engagements by the relevant SAIA Committee structures, … SAIA has decided that Code 2 vehicle salvage information will not be included in the VIN-Lookup website.”

It goes on further to say:

“SAIA is of the view that providing general access to Code 2 salvage records would compromise those who buy these vehicles and safely undertake repairs to the manufacturer’s specifications. AND …”Making such information available could also create the appearance of a single industry-wide set of uneconomical to repair thresholds where none exist.”

A copy of the letter is available here

SAMBRA is deeply disappointed at the outcome of this letter and believe that this goes against a consumer’s right to be informed of the true condition of the vehicle they are buying and places them at significant risk. SAMBRA will continue to engage with the broader VSD task team on a way forward which protects both the industry and the end consumer.

How You Can Protect Yourself

It has been found that many cars that have been severely damaged in accidents often end up being repaired and returned to the road. To the untrained eye these cars may look perfectly acceptable but, hoist them up and take a closer look, and one may be shocked at the quality of the repairs and the severity of the previous damage incurred.

Roadworthy Not Enough?

When you buy a second-hand car, it comes with a roadworthy certificate, but this alone will not provide a confirmation of no material issues being present. A roadworthy certificate is a legal requirement to complete the registration for transfer of ownership when one acquires a used motor vehicle, or for any vehicles carrying passengers for reward like mini-busses/busses/heavy load vehicles. A roadworthy test conducted by the vehicle examiner identifies visual defects with the electrical items, bodywork components, steering, suspension, and interior seatbelts and an overview of the undercarriage.

It makes sure it is “roadworthy” but will NOT necessarily pick up if the vehicle has been in a previous collision. SAMBRA has been lobbying hard with the South African Insurance Association (SAIA) to make information on previously written off cars deemed uneconomical to repair, available to customers.

Until this information is available SAMBRA encourages all consumers who are looking to buy a previously owned vehicle to educate themselves, by following these steps and protect themselves while purchasing a second-hand vehicle.

Follow Steps 1 & 2  below for guidance

If you have experienced a problem with a vehicle that you suspect was previously written off by an insurer, forward details to SAMBRA and we can put you in touch with a qualified independent assessor who can provide you with an in-depth assessment for evaluation.

STEP 1: Read the Declaration

Declaration

・I hereby declare that this Complaint is not subject to any legal action at the time of completing these forms. (These include SA Courts- and Small Claims Court litigation, MIOSA or any other legal action.)

・I /We agree on signing the complaint form that I / We will not to hold the Retail Motor Industry Organisation and / or SAMBRA, its Management or any of its staff liable for any loss or damage of any nature that you may suffer as a result of SAMBRA accepting and dealing with this complaint. I also undertake that I will NOT use any social or electronic media to defame the Retail Motor Industry Organisation and / or SAMBRA, its management or staff if the decision does not meet my expectations.

・I / We authorise SAMBRA to disclose all documents and/or other evidence received on the specific complaint to the respondent, complainant or any interested party.

・I /We agree that SAMBRA will have the discretion to disclose and/or publicise their recommendation including any supportive documents and/or evidence, as well as reporting it to the appropriate authorities, including but not limited to the Motor Industry Ombudsman of South Africa (MIOSA), National Consumer Commission (NCC) and the National Consumer Tribunal (NCT) in terms of the South Africa Automotive Industry Code of Conduct (Code).

・ I /We agree that SAMBRA will have the sole discretion to disclose and/or publicise their recommendation to media on request.

・ I /We agree that SAMBRA will have the discretion to disclose and/or publicise their recommendation on the SAMBRA website.

STEP 2: Complete the form (click to open form)

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