Second-hand car purchase: how to avoid buying a stolen vehicle in South Africa
Buying a second-hand vehicle comes with unique risks, including the chance that the vehicle may have been stolen or contain stolen parts. This is particularly relevant given the high crime level in South Africa.
Second-hand car buyers are therefore encouraged to take precautionary steps to avoid the costly implications of buying a stolen vehicle.
This is the advice of Karen Rimmer, head of distribution at PSG Insure, who cautions South Africans against neglecting to “do their due diligence” before closing a deal to purchase a second-hand car.
In her experience, “when motorists are too trusting and unaware of the prevalence of car theft, they run the risk of having their car impounded or confiscated without compensation or having their insurance claims rejected if they purchase a stolen vehicle without knowing it.”
Providing a few practical ways that car buyers can protect themselves and their assets, Rimmer urges customers only to buy cars from reputable dealers.
Is your dealer reputable?
Before agreeing to the purchase, motorists should research the dealership by searching for reviews on social media and websites. Reputable dealers should also be contactable in several ways, including by email, phone and at a physical and verifiable address.
Customers should also be wary of car salespeople who seem ‘pushy’ and are overly willing to negotiate on price – if a deal sounds too good to be true, it’s often because it is.
Check that the seller’s address (whether this is a dealership or a private seller) matches the address on the registration and roadworthy documents. It’s also important to check the car’s service history – buying a vehicle that is sold without a logbook of repairs or a full-service history along with approved confirmation from the service provider is not recommended.
How VINs and dots help verify a car’s identity
Conducting a basic background check on the car itself is also an important part of the process.
The legitimacy of the vehicle and its parts can be verified using its Vehicle Identification Number (VIN). Every VIN in the world is unique to a specific vehicle and is composed of 17 characters that serve as its identifier. Using the VIN, motorists can verify multiple aspects of the car, its licensing history, and its parts.
The VIN should be consistent across all roadworthy and owner registration documents. The chassis number should be the last six digits of the VIN, and both the engine and chassis numbers should correspond with those on the car registration papers. If they do not, those parts could have been pirated or stolen.
In addition to this kind of research, Rimmer recommends checking whether the vehicle has been fitted with microdot technology. Not many motorists are aware that as of September 2012, all new motor vehicles registered in the country must carry microdot technology.
Microdots are virtually indestructible particles featuring unique UV identification codes that are readable only by using a special magnifier. Each code is registered in the Department of Transport’s e-Natis system for tracking and tracing purposes.
As Rimmer explains: “Service providers like DataDot have made significant headway into deterring theft, counterfeiting and product diversion. If a VIN is considered a car’s fingerprint, you could think of a microdot as the car’s DNA.
Microdots are most commonly used to identify if your car was recovered after being stolen. But this technology is also incredibly useful to check whether a car has been stolen before agreeing to the sale. It is, therefore, highly recommended as a personal risk management strategy.”
Remember to insure your second-hand car
Once the car has been thoroughly checked for legitimacy, customers can take out insurance for their vehicle with peace of mind. At this point, it’s vital that the car owner obtains an accurate valuation of the vehicle’s worth, particularly in the case of second-hand vehicles, which may contain custom sound systems, body modifications or other fixtures that may increase its replacement value.
Rimmer said that insurance policies should be reviewed on an annual basis. “Check in with your adviser about the condition of cover for your vehicle, as factors such as changes to where it parks overnight, whether it is designated for business or personal use, as well as the risk profiles of the nominated drivers, may influence your premium and the conditions of your policy. Making a habit out of reviewing your car’s insurance policy every year is part of developing a sound financial wellness regime.”
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