A sigh of relief as unlocking the vehicle trade is announced
The Department of Trade and Industry has just released directives which will, with immediate effect, allow motor dealers and other support and enabling services such as car-testing centres to unlock their businesses and start trading. This will, however, be allowed only under strict protocols.
There is no doubt that government will start inspections to ensure that the directives are being applied to the letter.
The motor industry is one of the largest employers in the country. Opening it up will create some movement in industry and hopefully set the tone for less stress on the South African economy.
OEM and pre-owned dealerships will now, during the first phase of this programme, be allowed to trade in new and used cars. The wholesale of new and used cars by OEMs and importers are allowed. Export and import and trade-in purchase and car leasing will be allowed.
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For many vehicle owners this could not have come at a better time. Many are looking to trade down to lower their premiums or seek a payment holiday to alleviate the pressure on their budget.
With businesses under pressure, many employees have had to take a pay cut or will not receive a salary for a limited period of time.
Personal contact during any transaction will be limited and strictly controlled. Dealerships will initially operate on a 30% employment limit – one employee per customer per every nine square metres of floor space. The largest part of the sales process has to be done remotely and, where possible, electronic or virtual signatures will be used on all documentation.
Test drives will be by appointment only. This also applies to service and repair work.
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Auto electricians, tyre fitment, windscreen replacement centres, bond stores and parts distribution centres along with motor body repairers will be allowed to operate. Again under very strict guidelines.
Two more phases of this programme will follow, the last phase will start on June 8 when dealers will be operating at near-total or full capacity.
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Unsolicited visits and walk-ins at dealerships will for now still be limited or not allowed. Servicing of vehicles will only be allowed within your municipality boundaries.
