• New rules for selling, buying and servicing vehicles in lockdown

    Date:13 May 2020 Author: Kyro Mitchell

    The Department of Trade, Industry and Competitions has given the green light for selling, buying and servicing vehicles during the nationwide lockdown in a new gazette published on 12 May 2020.

    The new gazette includes directions for all car dealerships and used vehicle outlets to prepare for the reopening of business while still maintaining Covid-19 risk mitigation measures.

    During alert level four the following trading activities will be allowed to take place:

    -Trade in new and used cars

    -Wholesale trade of new and used cars by original equipment manufacturers (OEMs) and importers

    -Export and import of all category of cars through national ports of entry under strict guidelines

    -Trade-in purchases, car lease scheme returns and wholesale trading of used cars

    The sale of cars will take place in three phases under certain conditions

    Phase one:

    – All dealerships and used car outlets will operate with up to 30% of employment subject to a maximum of one employee or customer per every 9 square metres of floor space: Provided that small businesses may operate with a minimum of five employees.

    -Personal contact must be kept to a minimum and only on appointment under very strict hygiene and social distancing conditions. Majority of vehicle sales will be conducted remotely or via the internet.

    -Vehicle test drives will be conducted on appointment only.

    -Home delivery of vehicles with full sanitization will be mandatory.

    – Where possible, electronic, or virtual signatures will be used for finance and insurance documentation.

    – Car auctions for all categories will be conducted online in compliance with the CPA Regulations.

    Phase two

    – All dealerships and used car outlets will operate with up to 60% of employment.

    – Limited customers will be allowed to enter the dealership under very strict hygiene and social distancing conditions

    – Remote vehicle sales will continue for those potential customers with access to online services.

    -Test drives can be arranged on site by appointment only, and under very strict hygiene conditions including fully sanitised cars

    – On site pick-ups and deliveries of fully sanitised cars will be allowed under strict hygiene conditions with an option of home delivery of fully sanitised cars, if possible

    – Car auctions for all categories will be conducted online in compliance with the CPA Regulations and limited physical contact will be allowed for viewing prior to the auction under very strict hygiene conditions including fully sanitised cars.

    Phase thee- From 8 June 2020 until Alert Level 4 is lifted

    – All dealerships and used car outlets will operate with up to 100% of employment.

    – Customer on-site contact will be allowed, but kept to minimum, whilst remote vehicle sales is encouraged.

    – Test drives can be arranged on site by appointment only, and under very strict hygiene conditions including fully sanitised cars.

    – On site pick-ups and deliveries of fully sanitised cars will be allowed under strict hygiene conditions with an option of home delivery of fully sanitised cars if possible.

    – Car auctions for all categories will be conducted online in compliance with the CPA Regulations and limited physical contact will be allowed. Persons taking part in auctions must maintain a distance of at least 1,5m at all times, including when entering or exiting from an auction.

    “This directive is undoubtedly good news for motorists and the motor industry alike. Based on an AutoTrader survey, the financial well-being of a whopping 65% of vehicle-buying consumers in South Africa has been negatively impacted by the nationwide lockdown,” said AutoTrader CEO, George Mienie.

    Image: Pixabay

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