Answer: The following is a broad outline of what you need to do:
Answer: If you are interested in acquiring a new motor vehicle dealership, you have a number of options:
New passenger and commercial motor vehicles are sold through franchised motor vehicle dealerships and this form of business model has pro-competitive benefits for all role players in the value chain and, in particular the motoring consumers and the local communities in which dealerships operate.
Motor vehicles are highly regulated products that require licensing, insurance, financing and periodic servicing and maintenance. Motor vehicles must also meet numerous stringent local and international environmental and safety standards.
Various laws and regulations govern the sale, financing and servicing of motor vehicles, which is usually carried out via a network of approved franchised new passenger and commercial motor vehicles dealerships. These consumer, financial and franchise laws not only protect consumers, but also govern the relationship between dealerships and manufacturers.
Consumers benefit from the franchised dealership business model first and foremost because dealerships of the same brand compete for the same customer’s business. Therefore, customers can be assured of getting the best possible deal and service. This also applies where dealerships from different brands compete for the very same customer’s business.
Franchise dealers compete on the servicing and maintenance of motor vehicles, as consumers have the right to take their motor vehicles to any dealership of their choice. It is the dealership that offers the best service that will retain the customer.
Dealers are required to employ qualified technicians, who attend regular training at the manufacturer to ensure that they are fully abreast with the latest technology incorporated into the vehicles, thereby providing consumers with access to quality and professional work, and ultimate peace of mind that their vehicle is well taken care of.
When a manufacturer needs to undertake a product recall to replace a defective part, this is done via the franchise dealership network, at no cost to the consumer.
When a motor vehicle is still under the manufacturer’s warranty and a defective part needs to be replaced, the authorisation, replacement and / or repair thereof is done via the franchised dealership. Invariably these warranty repairs are done at no cost to the customer.
Dealers also assist consumers in applying for the financing of the motor vehicle being purchased. Dealers have direct access to the various motor vehicle financing institutions and are in a strong position to provide the customer with comparative quotations, saving the customer time in having to personally contact the various financial institutions themselves.
Dealerships are the economic cornerstone of many communities. When other businesses move in and out of communities, it is the dealership that remains, offering well-paying jobs with opportunities for advancement.
More than 1 700 franchise motor vehicle dealerships operate across South Africa. These businesses employ in excess of 56 000 employees. Additional jobs are also created in sectors that provide service and conduct business with motor vehicle dealerships. These jobs are critical in addressing unemployment as well as providing tax revenue which ultimately benefits local communities.