The South African Motor Body Repairers’ Association (SAMBRA) is advocating for a transparent Vehicle Salvage Database (VSD) to help consumers avoid unknowingly purchasing unsafe used vehicles. This initiative follows the South African Insurance Association’s (SAIA) recent decision to withhold key data on salvaged vehicles, citing concerns that sharing this information could negatively impact dealers who repair accident-damaged vehicles for resale.

SAIA currently offers a VIN-Lookup website where buyers can check if a vehicle was previously written off. However, it only covers vehicles categorized as Code 3 (rebuilt), Code 3A (for spare parts only), and Code 4 (permanently demolished), while excluding Code 2 vehicles, which may still have significant undisclosed damage. Although SAIA initially planned to include Code 2 vehicles in its database, it later reversed this decision, citing risks to dealers’ business interests.

The Need for Legislative Reform

SAMBRA believes that omitting Code 2 information jeopardizes consumer safety. Dev Moodley, SAMBRA’s Chairman, argues that a more detailed vehicle history tracking system is essential and supports legislation to standardize vehicle code classifications within South Africa’s electronic National Traffic Information System (eNatis). This reform would give buyers access to complete vehicle histories, enabling them to make well-informed choices.

While the current VIN-Lookup tool is a step forward, Moodley notes its limitations. Many Code 2 vehicles listed in eNatis may have been previously written off or suffered severe damage, yet they re-enter the market with insufficient disclosure.

Adopting International Best Practices

To improve consumer safety, South Africa could take cues from established international models. Brandon Cohen, chairperson of the National Automobile Dealers’ Association (NADA), recommends specific legislative measures for vehicle salvage codes. The UK’s classification system, for example, clearly distinguishes vehicles based on their condition, with categories like:

• Code A: Vehicle cannot be repaired and must be scrapped.

• Code B: Vehicle cannot be repaired, but salvageable parts may be reused.

• Code N: Vehicle can be repaired following non-structural damage but requires a roadworthy inspection.

This clear, structured approach promotes transparency and ensures relevant information is available to all key stakeholders, including banks, insurers, repairers, dealers, and consumers.

Toward a Safer Used Car Market

Implementing similar standards in South Africa would offer consumers greater clarity on vehicle histories, supporting transparency and accurate asset valuation. Cohen notes that South Africa has the technical infrastructure in place; what’s required now is the legislative commitment to enforce these codes.

These changes would ultimately protect consumers from purchasing poorly repaired, written-off vehicles that may otherwise be refinanced and re-insured without proper oversight. Planned discussions among industry stakeholders in the coming months could lay the groundwork for a safer used car market, helping to safeguard consumer interests and improve overall road safety.