How Finance and Insurance Managers help to protect you from car fraud

Buying a car is a big milestone, but here’s the reality: scams are common in South Africa. The good news? You don’t have to face this alone. The Finance and Insurance (F&I) Manager is your fraud-fighting superhero. Today we’re diving into how they help protect you when buying a car. Trust me, you’ll want to know this.

Who exactly is an F&I Manager?

At a vehicle dealership, the F&I Manager is the person who helps you navigate all the finance and insurance stuff. Yes, they handle paperwork, but they’re not just there to draft contracts. They’re trained to explain finance options, insurance, and extras. More importantly, they help ensure you don’t fall victim to fraud. Think of them as your financial bodyguard in the car-buying process.

How does fraud happen when buying a car in SA?

Fraud isn’t always as obvious as someone selling stolen cars from a corner lot. It’s often much sneakier. Fraudsters use fake documents and scams that target both dealerships and buyers. And when things go wrong, you, as the buyer could be left paying for a mess you didn’t cause.

What role you can play to help prevent this:

·       Confirm the car isn’t stolen or already financed with an ownership and finance check.

·       Verify the dealership’s credentials.

·       Avoid intermediaries who offer to “handle everything”.

·       Share personal details only with the dealership and bank.

·       Ask questions and insist on plain-language answers.

·       Take your time, read everything before signing.

·       Double-check details, down to the last digit.

How your F&I Manager protects you

Your F&I Manager is more than a paperwork processor, they’re your fraud-fighting co-pilot. Here’s how they keep you safe:

• Verify documents: They check your ID, proof of income, and proof of address to confirm authenticity.
• Protect your data: Your personal and banking details are handled securely to prevent misuse.
• Conduct affordability checks: They ensure compliance with the National Credit Act so you don’t take on debt you can’t manage.
• Use digital tools: Advanced fraud detection systems help spot risks early in the process.
• Structure your loan application: They organize your application to maximize approval chances while meeting your affordability needs.
• Ensure transparency: Every financing option, interest rate, and term is explained clearly, no hidden surprises.
• Act as a financial partner: They flag anything unusual in the sale to protect your interests.
• Maintain compliance: They stay up to date with consumer protection laws and disclosure requirements so you don’t have to.

Why this matters for you

Fraud isn’t just a dealership problem, it can wreck your life. Imagine losing your deposit to a fake seller or paying off a loan on a car that was never yours. An F&I Manager ensures every aspect of a sale is legal, transparent, and safe.

Prefer buying from a private seller? Use Absa’s Private Buy solution. You can take the car you plan to buy to an Absa-approved Private Buy dealership; they will arrange for the  vehicle to be checked and arrange finance.

Watch out for these danger signs:

·       Seller refuses to show registration papers.

·       Price way below market value.

·       Pressure to sign paperwork quickly.

·       Fine print no one explains.

·       Seller insists on meeting in a quiet place.

Add-Ons and Extras – what’s worth it?

F&I Managers often offer extras like service plans, warranties, tyre and rim cover, and scratch and dent protection. You don’t need them all, but some can be useful, especially if you drive on pothole-ridden roads or plan to keep your car long-term. Comprehensive insurance is the only legal requirement for financed cars, the rest is up to you.

Are F&I Managers biased?

Wondering if they push products for commission? In South Africa, they’re legally required to present all offers fairly and disclose bank ties. While they do earn commission, their role is to guide, not trap, and the final decision is yours.

Final advice

Ask to see all bank responses and loan structures – check the term, interest rate, balloon payments, and extras. When approval comes through, don’t let excitement cloud your judgment. Read the full contract, ask questions, and agree only to what fits your budget.

The bottom line is, your F&I Manager does much more than push paperwork. They’re your fraud-fighting co-pilot. That said, it’s still up to you to ask questions and stay sharp during this process.

Drive safe. Stay protected. Enjoy the ride!