South Africans considering buying a second-hand car might be putting themselves at risk as written-off vehicles find their way into the used-car market.
This is according to Nedbank, which noted that when a vehicle has been in an accident and the repair bill crosses a certain threshold, the insurer will write it off, and it shouldn’t be allowed back on the roads.
However, the bank has observed that these cars will be poorly repaired and sold to unsuspecting people in certain cases.
“Sometimes, unscrupulous people fix up written-off cars and sell them to shady dealers who sell them on to unsuspecting buyers,” the bank said.
“This puts drivers and passengers at risk, because the vehicle no longer meets the original manufacturer’s safety standards.”
South African car-buyers must therefore take extra steps to ensure the used cars they buy are up to code.
Nedbank indicated there are a few ways this can be done.
This includes the bank’s newly launched VIN Lookup system, which allows users to see a car’s history and determine whether they have been declared a write-off in the past.
“Searching the database is easy and free. You simply fill in your name, identity number and the vehicle identification number (VIN) to learn about a car’s history,” Nedbank said.
“Each vehicle has a code that details its past. As a buyer, you need to pay attention to this history to avoid problems later.”
These codes range from one to four, and each denotes the current state of a vehicle.
Code 1 is used for brand-new cars that have been sold to their first owners by dealerships while Code 2 is for cars that has had at least one prior owner.
Code 2 also indicates that the vehicle has been in an accident before, but the damage was fixable, and the car was put back on the road.
“This code also covers cars that are re-registered for licence plates after they have been stolen,” the bank said.
The remaining three codes are those of which South Africans need to be particularly aware, as all three relate to vehicles that aren’t roadworthy.
Code 3 is for a vehicle that has been in an accident and is no longer roadworthy due to structural damage.
“If this kind of car is rebuilt, it no longer meets the standards of the manufacturer and must pass strict tests before returning to the road,” the bank said.
Following this, Code 3A is for vehicles that cannot be fixed and are only appropriate for spare parts.
Should a user search for a vehicle that falls into this code, they might see results such as:
“The vehicle was deregistered as permanently unfit for use because it had IRREPARABLE structural damage and cannot be repaired to a safe and roadworthy state.”
“The vehicle shall not be reregistered and was destined for the used spares market and had to be stripped for spares, not to be reregistered. The record of the vehicle will be blocked.”
The final code, Code 4, applies to cars that can’t be fixed or used for spare parts, such as stolen vehicles that have been completely stripped for parts, or those in severe accidents that are completely ruined.
In this case, a search could yield results such as:
“In terms of Regulation 13A read with Regulation 1 and 55 of The National Road Traffic Act, 1996, the vehicle shall not be registered, and its parts shall not be used to build or repair any motor vehicle.”
Awareness of these codes is essential for ensuring you don’t buy an unsafe car.
The table below, provided by Daily Investor, summarizes the codes and what they represent.
| Code | Meaning | Details |
|---|---|---|
| Code 1 | Brand-new car | Sold by a dealer to its first owner. |
| Code 2 | Used car | Has at least one previous owner, may have been damaged in an accident but can be repaired and put back on the road. Also applies to stolen cars re-registered for licence plates. |
| Code 3 | Structurally damaged car | Has been in an accident and is no longer safe to drive. If rebuilt, it does not meet manufacturer standards and must pass strict tests before returning to the road. |
| Code 3A | Irreparable car (for parts only) | Permanently unfit for use, cannot be repaired to a roadworthy state. Deregistered and destined only for the spares market; record is blocked and cannot be re-registered. |
| Code 4 | Demolished car (not for use or parts) | Irreparably damaged, with no major components usable. Deregistered as demolished; cannot be re-registered or used for spares under the National Road Traffic Act. |
Upsurge in second-hand cars
According to Mordor Intelligence, South Africa’s second-hand vehicle market is valued at $12.89 billion in 2025 and is projected to grow to $18.26 billion by 2030.
Along with this, TransUnion’s Vehicle Pricing Index (VPI) for 2024’s fourth quarter showed that financing for used vehicles outpaces new cars by a ratio of 1.56 to 1.
“South Africa’s automotive sector is navigating a complex landscape, balancing economic improvements with persistent affordability challenges,” said Marcia Mayaba, Sales Vice President, Auto Information Services at TransUnion South Africa.
“The demand for used vehicles continues to grow, while we’re also seeing an increasing shift towards alternative financing and ownership models, such as leasing and car subscriptions, particularly among younger consumers.”
Affordability is a key driver of this growth as South Africans continue to look for longer-term financing and lower-priced options.
This massive growth has also contributed to the number of dodgy cars being sold to unsuspecting South Africans.
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