South Africa has a big problem with illegally imported cars, also known as “grey vehicles.”
These cars have steadily made their way into the pre-owned marketplace through the assistance of dubious dealers and unregulated private sales.
It’s therefore imperative to know what to look out for should you be shopping for a pre-owned bargain.
According to the folks at IntegriSure insurance brokers, telltale signs of a grey vehicle include:
- Uncommon models – Be cautious if the vehicle model is not commonly found in South Africa
- Suspiciously low prices – Determine if the price is significantly lower than the market average for similar models
- Microdot verification – Request a microdot certificate or take the vehicle to a microdot fitment centre for verification
- Check Vehicle Identification Number (VIN) – Ensure the VIN matches all documentation and is not tampered with
- Inspect registration papers – Ensure the vehicle has a full service history and all necessary documentation, including import papers and registration certificates
- Look for unusual modifications – Check for unexpected or undocumented modifications, which might indicate attempts to pass off a grey vehicle as legitimate
The experts also advise that you should only buy from reputable dealers and perform background checks on private sellers for an added layer of protection.
There are numerous dangers to owning a grey vehicle, regardless of whether you purchased it without the knowledge of its true import status.
A pertinent risk is being pulled over by the authorities at a roadblock and having officers realise you are in possession of an illegally imported car.
This could get you slapped with hefty fines and there is a high likelihood the car will be impounded. In extreme scenarios, you may be criminally charged.
Additionally, should you be involved in an accident, you may face liability issues even if the incident was not your fault. If found guilty of knowingly purchasing and using they grey vehicle that was involved in the crash, you stand to receive jail time.
IntegriSure further notes that no insurance company in South Africa will cover a grey vehicle. This leaves you without protection in cases of accidents or theft.
“Even if a policy is initially granted, it may be invalidated upon discovery of the vehicle’s status at claim stage,” said IntegriSure.
“Without insurance, owners bear the full cost of repairs or loss due to accidents or theft. Additionally, resale value for grey vehicles is significantly lower, leading to financial loss.”
These vehicles do not come with after-sales agreements like a manufacturer’s warranty or service plan, and as such, the cost of maintenance and repairs falls on the owner regardless of the age or mileage of the car.
Spare part availability is highly limited, too, further adding to the burden of owning a grey import.
Finally, grey imports are oftentimes old and not up to scratch with modern regulations and safety standards, putting the lives of the occupants as well as other road users at risk.
How grey vehicles enter South Africa
Naamsa The Automotive Business Council estimates that as much as 900,000 of the 12.5 million passenger vehicles on the country’s roads are here unlawfully.
These grey cars enter our borders through two main avenues.
The first; while used autos are not allowed to be imported to South Africa for sale, they are allowed to be brought in for export to a neighboring country, and it is believed that this policy is heavily exploited.
These vehicles dock at one of the nation’s various ports and are then loaded onto a truck to be transported across the borders. However, on their way to South Africa’s neighbours they are quietly offloaded at discrete locations, and there they remain.
The second; citizens from adjacent landlocked regions like Botswana, Lesotho, and eSwatini often drive their vehicles across the borders into South Africa purportedly for holiday or business, and once they are in the country, they just don’t leave.
Today, these grey vehicles cost South Africa in excess of R8 billion a year in licensing fees, up from R3.8 billion in 2020.
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