Understanding wholesale and retail options at second hand car dealers

Buying a second hand car is not always as cheap as you think. A consumer who decided to look at second hand cars at the company We Buy Cars, discovered that there are two price options to choose from.

He was told that there is a wholesale option and a retail option.

With the wholesale option, you pay the price advertised, but you then have to go on to do and pay for all the checks of the car yourself.

The retail option did the checks, but you had to pay for their warranty that increased the price by several thousand rand.

READ: Commission to charge dodgy CT car salesman after failing to reimburse customer

Consumer journalist Wendy Knowler investigated this further and discovered, through one of her past cases, that if you buy wholesale, the Consumer Protection Act (CPA) doesn't apply. This is because you are technically buying with the intention of reselling.

She adds that when she approached We Buy Cars on their sales models, she was given a long explanation of how they operate.

In short, there are indeed two types of deals, one retail and one wholesale. The wholesale deal was only for dealers and businesses with an annual turnover of R2 million. The retail deal, that's the one where you pay extra for the CPA, warranty and all the other things - that's for ordinary consumers or dealerships with an annual turnover of less than R2 million.

Wendy Knowler, Consumer Journalist

Knowler adds that the CPA included small businesses so they too get all the protections of consumers.

Knowlers says that int the case of the consumer who was offered a wholesales deal, We Buy Cars said that there are steps to determine if a potential client is a dealer or not. But it can get quite tricky, particularly if individuals try they luck to get a cheaper price.

Listen to the full conversation:

Email: consumer@knowler.co.za, put Cape Talk in the subject line, followed by the issue e.g. cellphone contract dispute.


Recommended

by THE NEWSROOM

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Smart techniques to use when borrowing money

Smart techniques to use when borrowing money

FNB's Eunice Sibiya says SA Human rights Commission reports more than 50% of credit-active consumers have impaired credit records.

Buying a car for a first-time driver? Expert advice from motoring gurus

Buying a car for a first-time driver? Expert advice from motoring gurus

Gumtree Auto ZA's Jeff Osborne and Cars.co.za's Ciro De Siena offer their expert tips when buying a budget car for a newbie.

Prevent being a victim of cybercrime when online shopping

Prevent being a victim of cybercrime when online shopping

By 2021, over 2.14 bill people are expected to buy goods & services online, so what does this mean about our online security?

Want to return your purchase? Consumer law doesn't protect buyers remorse

Want to return your purchase? Consumer law doesn't protect buyers remorse

While many retailers have different policies, consumers are not entitled to reimbursement for unwanted gifts, by law.

Check the T&Cs before booking your wedding supplier, warns Wendy Knowler

Check the T&Cs before booking your wedding supplier, warns Wendy Knowler

Consumer journo Wendy Knowler says there must always be a detailed contract in place between bridal couples and wedding vendors.

Popular articles
Convicted murderers of Winnie Rust went on a shopping spree using her bank cards

Convicted murderers of Winnie Rust went on a shopping spree using her bank cards

EWN reporter Shamiela Fisher says 77-year-old Rust took care of one of the accused and supported him and his family financially.

Journos join the dots: Estina suspects, 'Zupta empire' and state capture in SA

Journos join the dots: Estina suspects, 'Zupta empire' and state capture in SA

Senior investigative journos unravel the Estina Dairy Farm scandal and how the suspects fit into the bigger state capture project.

Ramaphosa gets Presidency off on the right foot

Ramaphosa gets Presidency off on the right foot

The President met with the people of Cape Town while on a 5 kilometre morning walk from Gugulethu to Athlone.

Political Desk: Shivambu and Malema have become excellent narrators- Haffajee

Political Desk: Shivambu and Malema have become excellent narrators- Haffajee

Huffington Post editor in chief shares her view on the SONA debate with Bongani Bingwa.