Vehicle dealerships get the green light to open
New vehicle sales took a hard knock during April reflecting a decline of 98,4 percent with only 574 new vehicles being sold last month.
THE wheels are turning again for the motoring industry after 48 days of no trading during lockdown. New vehicle sales took a hard knock during April reflecting a decline of 98,4 percent with only 574 new vehicles being sold last month.
In light of this, the industry has been fighting hard for authorities to allow dealerships to open during Covid-19 level 4 lockdown, and eventually the Department of Trade, Industry and Competition has given the green light.
Under the new regulations, vehicle dealers are allowed to sell both new and used cars, while original-equipment manufacturers (vehicle manufacturers) and importers may wholesale new and used cars.
Trade-in purchases, car lease scheme returns, and wholesale trading of used cars are also permitted while vehicles may also be imported and exported.
As keen as what new and used car dealerships are to start trading again, they have to abide to strict rules to safeguard employers and customers against Covid-19, so vehicle sales will be allowed under the following phased-in approach, as outlined in the government’s latest gazetted regulations.
Phase One: 13 – 23 May
All dealerships and used car outlets can operate with a maximum of 30 percent of staff, subject to a maximum of one employee or customer per every nine square metres of floor space.
Clients may only enter dealerships on appointment and personal contact must be kept to a minimum under very strict hygiene and social distancing conditions.
Test drives will be conducted by appointment only.
To facilitate the sales process and maintain social distancing, where possible, electronic, or virtual signatures will be used for finance and insurance documentation.
Home deliveries of fully sanitised vehicles are mandatory.
Phase Two: 25 May – 6 June
All car dealerships can operate with up to 60 percent of staff and strict hygiene and physical distancing conditions will still comply.
On-site pick-ups and deliveries of fully sanitised cars will now be allowed under strict hygiene conditions, with an option of home delivery of fully sanitised cars, if possible.
Phase Three: 8 June until the national Covid-19 Alert Level 4 is lifted
All staff can return to work and customers will be allowed on-site, but kept to a minimum while remote vehicle sales will still be encouraged.
In all three phases the following restrictions apply:
Customers will have to wear masks if they want to enter the dealership, no children are allowed in dealerships, and clients will have to sign a register upon entering.
Test drives can only be arranged by appointment and under very strict hygiene conditions, including the provision of fully sanitised cars for customers.
Car auctions will be conducted online in compliance with CPA Regulations and also under very strict hygiene conditions.
