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WCLawyer, Attorney
Category: South Africa Law
Satisfied Customers: 15603
Experience:  L.LB (UOVS)
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Halo. My name isXXXXX bought a Mazda BT50 secondhand

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Halo. My name isXXXXX bought a Mazda BT50 secondhand in January at western Ford in Lichtenburg. MFC financed the vehicle, however due to it's fuel consumption I traded the Mazda BT50 in on a new Ford Fiesta 1.6 diesel. Western word offered me a trade in of R210000 for my Mazda BT50. However unknown to me, MFC had an agreement with Western Ford, they paid Western Ford a commission for doing the financing of the Mazda BT50 with MFC. The only requirement was that if Western Ford settled the outstanding balance within 180 days of purchase they have to refund the commission MFC had paid them. Nobody had informed me of this clause, then when I completed the trade, they used the R210 000 to settle the outstanding balance and refund the commission paid to them by MFC. They then paid the remaining R21000 into my bank account. If I had done the exact same transaction at another Ford dealer or any other dealer in the country I would have received R24 000 in my bank account after the outstanding ballance for the Mazda BT50 was settled. Therefore I would like to know if I am within my rights to legally request Western Ford to refund me R3000.
Good day.

I trust you will find this answer beneficial. This is an info request to assist you better. Please continue on this thread.

What was your settlement amount at MFC on the Mazda?
Customer: replied 4 years ago.

The settlement amount was R188222.65 but that includes the R3033.47 dealership fee wicth I would not have paid if I traded the Mazda BT50 at any other dealer in the country.

So, what you are saying is that the outstanding loan payment was, in fact, R 185 000 plus/minus but because of this commission, they have increased it to R 188 000?
Customer: replied 4 years ago.

That is 100% correct.

And can I assume that there is nothing of this mentioned in the finance agreement?
Customer: replied 4 years ago.

Yes you can, nothing was mentioned.

So, just to confirm: The dealership paid MFC the settlement amount claimed by MFC as the outstanding balance and held back R 3 000 from the amount that was supposed to be paid to you, just because MFC said they could?
Customer: replied 4 years ago.

Yes that's correct.

The way I see it, they were supposed to pay over the settlement amount to MF, which they did. MFC was then supposed to pay them R 3 000, out if their pocket commission, since that agreement has got nothing to do with you.

As things stand, you would, in my opinion, have a claim for R 3 000 from the dealer since the short paid and they would, in turn, have a claim for R 3 000 from MFC.

I would suggest, given the small amount, that you approach the Small Claims Court with your claim. This is the cheapest and quickest way to collect a sum of under R 12 000. Nobody is allowed to use lawyers and the whole process will cost you about R 100.

The Small Claims Court is usually located at your local Magistrates Court and you should ask to speak to the Clerk of the Small Claims Court. They will assist you in issuing a letter of demand and then later a summons.

You will have to represent yourself on a date that will be given to you by the Clerk of the Court, however, this is normally after hours, which means that you do not need to take off work.

The other alternative is the Motor Industry Ombudsman (

I hope this answers your question, but if you have follow up questions before you rate, feel free to ask them at no extra cost. If you are satisfied with the service, kindly rate it positively. I do not get anything unless you rate the service
Customer: replied 4 years ago.

I just want to clarify something, when I bought the Mazda BT50 MFC paid Western ford R3033 commission. So Western Ford used R3033 of the amount they offered me as trade in to refund MFC. I see in your response you say that Western Ford will have a claim of R3000 from MFC. Would you care to elaborate?

It does not really matter what the terms of that agreement was, since you are not a party to it and neither MFC, nor the dealer, it would seem, would have a right to collect the commission from you. If they did collect the commission from you, then you have a right to claim it back from whomever collected it from you, which seems to be the dealership from your information.
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