Society’s open secret: 2nd-hand shopping is hot!

The second-hand goods trade is the largest everyday business activity in South Africa and has seen huge growth over the past three years.

This is according to Tom Fuhri, the CEO of the Second-Hand Dealers and Pawn Board, which represents its members’ interests in legislative matters and does market research.

He says history shows that since ancient days, there has been a need for usable, used goods, especially among the less wealthy.

“The moment you buy new goods and exit the store or slightly use the goods, the value drops by 35–60%,” he says. This means that even ‘like new’ pre-owned items can be purchased at a much lower cost than new ones.

Fuhri says the high rate of unemployment and the pressure being placed on consumers by the economic slowdown have forced people to buy second-hand goods, rather than new ones.

The twist is just how many people are loving the resale revolution, which allows consumers to creatively reuse or upcycle goods to meet their tastes or sell at a profit, to buy valuable items at a fraction of their true cost, and find everyday bargains.

South African company Luxity, which acquires, authenticates and sells pre-owned luxury brands such as Jimmy Choo, Prada and Hermès, reported an 86% surge in sales in its 2021/22 financial year.

As exciting as bargain hunting may be, Fuhri says consumers need to be informed about possible risks. The main one, he says, is that if the price is too good to be true, pause a moment – you could be buying stolen goods or goods that are still under hire purchase agreements.

Smart shopping

The Second-Hand Goods Act 2009 regulates the business of dealers in second-hand goods and pawnbrokers. The act helps combat trade in stolen items and protects consumers.

According to the act, dealers must get the full details of the person they buy goods from, including a copy of their ID. They must also get full details of the item they are buying, including a serial number if applicable, a description and details of where the item was obtained or bought. Details of the person who later buys the item from the dealer must also be obtained.

In addition, dealers must be registered with the SAPS and must be able to provide a certificate of registration if requested by a customer. Dealers are regularly inspected by the police.

It is unwise to buy second-hand goods being sold on the street or from a dodgy private seller, Fuhri warns, because if you are found in possession of a stolen item, you could be arrested, in line with General Amendment Act, Section 36 and 37.

“Rather buy from a SAPS-registered second-hand goods dealer or pawnbroker,” says Fuhri.

If you are buying from a private seller, he says, ensure that you get a copy of the seller’s ID, physical address and, if possible, the motor vehicle registration number.

Are second-hand items sold voetstoots?

The buyers of second-hand goods are protected under the Consumer Protection Act. Fuhri advises that consumers ask second-hand goods dealers if they give written warranties.

“If second-hand goods are bought on a social media platform, without physically seeing or inspecting the goods, a consumer is then protected and entitled to a five-day cooling-off period from the date purchased and received,” Fuhri says.  

Sellers have to tell buyers about any known defects, and buyers have the right to expect and the responsibility to ensure that the second-hand items they buy are reasonably suitable for the purpose for which they were sold.

“Ensure that items are in good working order and useable and durable for a reasonable period. If you have any doubts, don’t take the risk,” he says.

If an item is said to be in working condition, but this proves not to be the case, the buyer must go back to the seller and try and come to an agreement that suits both parties. If no agreement is reached, the National Consumer Commission may be approached for mediation.

Contact
NCC call centre: 012 428 7000. Website: www.thencc.gov.za

Second-Hand Dealers and Pawn Board: 018 297 3515. WhatsApp: 079 107 2153. Website: www.pawnsecboard.co.za