To avoid being conned into buying a cloned vehicle, dealerships should validate the original identity of the vehicle being traded using VehicleFacts.
A local dealership recently purchased a K2700 commercial vehicle from a business. The standard dealer checks were completed, and the vehicle was then sold on to a new owner. However, during a routine service the dealership noticed that the vehicle – according to its records - had already had its 50,000km service in Namibia. Further investigation confirmed the original identity of the vehicle through the use of microdots fitted on the vehicle prior to first registration by the manufacturer.
Law enforcement were able to confirm that the vehicle was indeed a cloned vehicle due to the VIN (Vehicle Identification Number) not matching the information on the microdot. The vehicle was seized and impounded.
So, what happens now to the dealership and the new owner? The dealership
will have to claim the purchase price from the business who originally sold them the vehicle – that is - if the business actually exists. The new owner
will have to:
- Forfeit the vehicle and lodge a claim against the dealership.
- In terms of the Consumer Protection Act for selling the new owner a cloned vehicle, and failing to ensure the true identity of the vehicle prior to the sale.
- Lodge a civil claim for damages.
- Lose their insurance cover on the vehicle as the insurance institutions will not be liable.
Motor dealerships wanting to avoid fraudulent transactions such as these and to avoid liability are advised to register with VehicleFacts. Through the use of an online system and hands on training dealerships are able to validate the original identity of the vehicle being traded. This minimises the risk to a dealership of trading in cloned or rebirthed vehicles and simultaneously ensures that the dealership complies with the Second-Hand Goods Act.
Register your dealership today by calling Oliver on 082-872-7397.