How to choose a good car dealership in South Africa

A dealership is just a dealership, right? I mean, what’s the worst that could happen? Turns out, quite a lot, actually.

So, before you walk into a dealership and spend a fortune on a car, it’s important to know that  not all dealerships are quite  the same . So, if you want to avoid being taken for a ride, there are a few things you can do to give yourself some peace of mind.

As we’ve said in every step of the car-buying process, research is key – and it’s no different with car dealerships.

Before doing business with a dealer, make sure you do all your research. Check to see if they have their business details in the Google My Business listing.

Then, you move on to the socials. Check Instagram, Facebook, X, TikTok, YouTube, LinkedIn, check every social media platform you can think of. Go through their comments and reviews, this will help paint a detailed picture of their reputation and give you insight on what previous customers think of them.

And don’t forget my personal favourite, HelloPeter. It’s a no-nonsense platform that combines customer reviews and gives you a great idea of how the business operates. It’s brutal for bad businesses, but great for honest ones.

If you know someone who’s bought a car from the dealership, then you’re in a great position. Word of mouth is incredibly valuable when it comes to reputation.

There’s also the practical stuff, like where they are located. It’s better when they’re close to you so that you can visit the dealership. Does it feel professional? Is the staff friendly and informed? What kind of customer experience do they give you? Is it part of a chain of businesses? How big is the business? Most importantly, would you feel comfortable doing business with them? Remember, they need you, not the other way around. It’s important to trust your gut, people.

Pricing and financing options are also important to consider.

Ask yourself the following:

·  Are the cars priced way below the other dealers?

· Are the prices too good to be true?

· Do they have the right financing options for my needs?

· Do they have a big enough inventory to offer me as many options as possible to help me buy the right car?

If you can answer all these questions, you’ll have a solid idea of the dealership. But, if you want to do a deep dive on them, you can.

We’re talking airport security search stuff:

1. Check that their business is registered as a commercial entity, complete with all the relevant licensing.

2.  Check that their business holds a tax clearance certificate from the South African Revenue Service (SARS) and is registered for VAT if their turnover is more than R1 million. We know SARS doesn’t mess around.

3. Check that their business holds a motor vehicle dealer licence obtained from the Motor Industry Ombudsman of South Africa (MIOSA).

4.  You can verify the dealership’s legal status, registration and licensing by visiting the Companies and Intellectual Property Commission (CIPC) website. Links in the description.

If they don’t pass these checks, they shouldn’t be getting your money, no matter how much coffee and free biscuits they’re offering.

Luckily, Absa has 2 000 approved dealerships you can choose from, all of which have been vigorously vetted, giving you complete peace of mind when making your choice.

Absa assesses their financial health and standing, triple checks all their licensing requirements and their adherence to consumer protection laws, ensuring that their customers receive the best possible service.

Buying a car is a big commitment, and we understand that you need to work with businesses that pride themselves on quality assurance, customer service and impeccable business practices.