The Possibilities and Limitations of Online Vehicle Buying
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OVER 16 300 SUBSCRIBERS www.autolive.co.za Issue No. 134 | 28 August 2020 THE POSSIBILITIES AND LIMITATIONS OF ONLINE VEHICLE BUYING Online shopping trends were on an upward trajec- to your driveway without ever leaving home? Yes, home. While these tools are very handy, there are tory long before the COVID-19 pandemic and but that was prior to COVID-19 and only under limitations to how far you can travel along this resultant enforced national lockdown saw South exceptional circumstances. buying journey, despite clever wording which may Africans investigating how to buy everything from According to Mark Dommisse, Chairman imply otherwise,” explained Dommisse. toilet paper to pool chlorine from the comfort and of the National Automobile Dealers’ Association The fact is that these new services offer an safety of their couches. (NADA), there is both good and bad news for those elegant way for original equipment manufacturers The rise in popularity of many existing and hoping to click a webpage button and see a new car (OEMs) and dealers to cast a wider net on a bigger new online shopping platforms has, in turn, fuelled magically appear a few days later. audience, together with convenient solutions the notion that buying vehicles in similar manner “Many local car brands are currently advertis- for willing participants within that audience. will soon be a reality. Is it really possible to buy a ing new methods for South Africans to browse, car online from start to finish and have it delivered and in some cases even buy, their next vehicle from continued on page 2 Page 7 Page 10 Page 21 SA’s vehicle exports Alternative lending New digital magazine severely impacted options reveal bucks trend in by COVID-19 new opportunities automotive publishing Subscribe for free @ www.autolive.co.za Page 2 Editor and Advertising Manager continued from previous page transactions in South Africa – other Items covered by the ECTA Liana Reiners than for property – can be concluded have a universal cooling-off period [email protected] However, the progression of any deal with a simple offer and acceptance. which cannot be waived via the 083 407 4600 will ultimately trickle down to a final But online transactions are governed contract. This allows a consumer transaction between buyer and seller by the Electronic Communications to cancel any transaction without Contributors at dealer level. and Transactions Act (ECTA) and it reason and without penalty for Roger Houghton For most, a new or used vehicle is here that matters such as offer and goods or services within seven days [email protected] is the second highest expense after acceptance, as well as final delivery of receipt. The only charge that can 082 371 9097 housing costs, so committing to are regulated.” be levied is the cost of returning the a large purchase such as this is The Act is designed for items goods and payment of the refund Advertising Sales obviously a bit more complex than that are extremely standard and must be made within 30 days of Liana Reiners ordering a new kettle from Takealot. understood by customers, such as cancellation. This is obviously an [email protected] If your kettle arrives by courier a a kettle. When it comes to special unrealistic situation when it comes 083 407 4600 few days after you enter credit card orders or anything where specifica- to the value of motor vehicles and details and click Buy on your laptop, tions are set by the consumer, the the natural depreciation they face as Address and you’re not happy with it for goods will only be suitable for use or second-hand goods, and this protec- 237 Rigel Avenue whatever reason, you simply return it enjoyment by that consumer in par- tion would be excluded if a vehicle Waterkloof Ridge and get a refund. ticular. Cars often come with many has been altered in any way through Besides the fact that kettles specifiable options, accessories and client specifications. Pretoria don’t come with a myriad upholstery bolt-on value add products, which “South African OEMs and PO Box 914 005 options, optional features, engine would force a number of protections dealerships are certainly working Wingate Park choices and paint finishes, they also generally afforded to consumers by frantically to offer new ways of 0153 don’t often come with mandatory the Act to be excluded. engaging customers via online 012 460 4448 insurance, finance plans, FICA “Imagine an outrageous portals and platforms, and NADA requirements and large price tags. paint selection combined with an believes these developments will roll Website More importantly, it’s unlikely you’d unusual interior colour. It would be out thick and fast in the wake of the www.autolive.co.za be trading in your old kettle, and this unreasonable to expect a dealer to pandemic,” Dommisse commented. process would certainly require some accept the return of this vehicle for “Creating deals, building Facebook physical interaction to facilitate, as it any reason other than that it was not transactions, and exploring finance www.facebook.com/pages/AutoLive does with vehicle trade-ins. supplied to requested specification,” options, vehicle specifications, ac- “While new digital technologies said Dommisse. “Though that is cessories and value-added products © 2020 WCM Media CC have, and will continue to acceler- an extreme case, the same would can all happen online and these pro- ate and streamline car buying in apply to any vehicle with customer- cesses will become slicker and more Production South Africa, there are some simple specified fitments, no matter how big efficient. But the bottom line is that Marketing Support Services reasons why e-commerce and vehicle or small.” the final stages of the deal should Danie Dreyer sales just don’t gel as a realistic be facilitated through a dealership [email protected] option in the foreseeable future,” together with a sales executive and +27 (0)12 346 2168 Dommisse said. qualified F&I manager.” “While there’s no doubt that for In other regions, and the USA Layout some a car is just an appliance, and in particular, the online vehicle sales Marketing Support Services the smell of leather, face-to-face in- concept is nothing new. However, Bonita Tuson teractions and the feel of steering and despite how simple TV ads and gear shifts on test drives don’t rank websites make the process seem, this Disclaimer very highly on importance scales, the channel does not come without some vast majority of car shoppers would fine print. The successes and profit- While reasonable precautions have prefer the touch, feel and smell of a ability of American services such as been taken to ensure the accuracy genuine showroom experience, or Carvana and Vroom are also under of the advice and information given at least to inspect the goods they’re question. They may paint an alluring to readers, neither the editor, the committing to. picture of laptop purchases and shiny proprietors, nor the publishers “Then there are the nitty-gritty new wheels being delivered shortly can accept any responsibility regulations which take the wind out Mark Dommisse, Chairman of afterward, but the reality is that car for any damages or injury which of the sails of the pure online vehicle the National Automobile Dealers’ dealers and showrooms are here may arise therefrom. buying fantasy. Technically, all Association (NADA). to stay. ■ MONTHLY SALES STATISTICS The growing amount of advertising in AutoLive has made it necessary to relocate the four pages of detailed monthly vehicle sales analysis to the website www.autolive.co.za. CLICK HERE to access Subscribe for free @ www.autolive.co.za Page 3 Editor’s Note Car Sales Slump This months issue of AutoLive While Commercial is full of reports. Lots and lots of reports. On everything from production figures and Sales Held Up in July sales figures, to export figures and the vehicle price index. First there is our regular BY ROGER HOUGHTON monthly sales comment which bemoans the fact that car sales are continuing to Sales of commercial slump. Then there’s the news that vehicle exports into Africa continue to lag. vehicles held up NAAMSA’s report on the second quarter of 2020 reveals surprisingly well that local vehicle production is projected to drop by 31% for in July, while the the year when compared to the number of units built in South passenger car sales Africa in 2019. Production in Q2 2020 was 65% lower than figure slumped by output in the same period last year as the COVID-19 lockdown 35.8% compared took its toll. Another report reveals that South African vehicle exports to July 2019. This is in the first half of 2020 reflected a massive decline of 73 419 according to com- vehicles, or 40.3%, compared to the first half 2019. For the same ments by NAAMSA period the vehicle export revenue figure declined by R21.3 on the latest monthly billion from R67.2 billion in 2019 to R45.9 billion in 2020. This new vehicles sales can be directly attributed to the COVID-19 pandemic, as most figures issued by the countries in the world imposed lockdown restrictions resulting in a fall in demand for new vehicles. Department of Trade The latest TransUnion SA Vehicle Pricing Index, in turn, and Industry. shows that the combination of minimal trading due to the It seems potential car buyers are prepared to delay new model purchases or bought used COVID-19 pandemic and the depressed economy saw a 71% vehicles, while commercial vehicle operators still require vehicles for their businesses and decline in the number of new and used cars financed in Q2 of most big companies buy new and not used models.