Hi, I purchased a brand new USA car from a dealership in Jhb…

In order to import a vehicle, the importer would first need to gain an import permit and currently import permits are only issued in respect of returning residents, immigrants, specialist modified vehicle for handicapped persons and collectors items ( not necessarily old cars). No permits are currently issued in respect of left hand drive vehicles.

In order for a vehicle to be registered in SA it has to be imported into the country subject to an import permit, subject to a certification / waiver from the SABS and the payment of excise duties and VAT.

Vehicles imported by returning residents or immigrants are not to be sold for a period of one year and may not be rented or used by another driver.

It is in no way surprising that difficulties are being experienced in registering the vehicles.

Based on the type of vehicle there is a weak possibility that the vehicle may have been imported as a classic or collectible subject to it being reassigned to RHD, but this is a remote possibility.

The questions to ask are:

• Is there a copy of the import permit; in need contact DTI import control?
• Has the vehicle been certified for use on SA road by the SABS?
• Has the excise duty and VAT been paid on importation; in need contact SARS?
• What real security / guarantee can they lodge subject to the vehicle not being registered?

It could be prudent in such circumstances to instruct your attorney to begin securing a real guarantee for the return of your funds and vehicle or to initiate proceedings to put the dealer to terms aimed at the cancellation of the contract and restitution of the purchase price.

I trust that I have provided you with sufficient information in order to better judge your current position.

Best regards,

If there is suffiecient factual information that the vehicle is illegally in the country or has been imported subject to a false declaration, then a charge or complaint at the SAPS or SARS (Customs and Excise) would be warranted. That is why it is important to receive documentation.

If the dealer has knowingly made misrepresentations as to the registerability of the vehicle for use on public roads, and it transpires that the import permit was either absent or for a non-public road purpose, eg. for track racing, only then would be charges of fraud be warranted.

Typically what will happen in this type of situation is that should the vehicle indeed be illegally in the country, each in the chain will point to each other, the vehicle could be seized and the SAPS will be reluctant to act as debt collector.

The facts need to be established first, and should charges be warranted then such criminal charges should not lawfully be used as leverage to receive return of your funds.

If you start pressing for a refund based on non-delivery of a vehicle registrable for a public road, then to prevent potential other deals from unraveling the dealer may indeed consider a refund.

To answer your question directly, it is possible for a dealer to sell an unregistered vehicle, eg track/stock racing car. It is not legal to knowingly misrepresent a vehicle is for public road usage and sell it to the public as such when it has not been imported for use on a public road. The key lies in tracing how the vehicle was imported.

Remember that should the vehicle indeed be illegally in SA or not for use on public roads, then chances are that the participants are well versed in the law and have exculpatory explanations predefined.

I trust that I have provided you with sufficient legal information to better understand your position.

Best regards,