By Karen Rimmer
Buying a second-hand vehicle comes with unique risks, including the chance that the vehicle might have been stolen or contain stolen parts.
This is of particular relevance given the high levels of crime in South Africa.
Second-hand car buyers are therefore encouraged to take precautionary steps to avoid the costly implications of buying a stolen vehicle.
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 unwittingly purchased a stolen vehicle.
Here are a few practical ways that car buyers can protect themselves and their assets:
Is your dealer reputable?
Before agreeing to the purchase, motorists should do research on the dealership by searching for reviews on social media and review websites. Reputable dealers should also be contactable in a number of ways, including by email and phone, and they should also have 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 car’s registration and roadworthiness documents. It’s also important to check the car’s service history. It is not advisable to buy a vehicle sold without a logbook of repairs or a full service history, along with approved confirmation from the service provider.
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. Every VIN 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, as well as its licensing history and parts.
The VIN should be consistent across all roadworthiness 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 to those on the car registration papers. If they do not, those parts could have been pirated or stolen.
Check 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 are required by law to 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.
Service providers like DataDot have made significant headway into deterring theft, counterfeiting and product diversion. If a VIN is thought of as a car’s fingerprint, you could think of a microdot as the car’s DNA.
Microdots are most commonly used as a way of identifying your car if it is recovered after it was stolen. But this technology is also an incredibly useful way you can check whether a car has been stolen before agreeing to the sale. It is therefore a 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 on 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.
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 is parked 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.
Karen Rimmer, head of distribution at PSG Insure.
*The views expressed here are not necessarily those of IOL or of title sites.
IOL Business