Number Plate Verification for Car Dealers: A Compliance Essential

Essential Compliance for Car Dealers

Number plate verification is a fundamental compliance requirement for motor vehicle dealers in South Africa. It forms part of regulatory obligations and protects dealers from fraud.

Regulatory Requirements

Car dealers must comply with:

FICA: Know Your Customer requirements
Consumer Protection Act: Fair dealing obligations
National Road Traffic Act: Vehicle regulations
Second-Hand Goods Act: Record-keeping requirements

Why Dealers Must Verify Number Plates

Verification protects dealers by:

Confirming vehicle is not stolen
Verifying seller ownership claims
Checking for outstanding finance
Documenting due diligence
Supporting warranty claims

What to Verify

Comprehensive verification includes:

Registration status and validity
Registered owner details
Make, model, and year
VIN and engine number match
Finance encumbrances
Stolen vehicle status

Implementation Best Practices

Dealers should:

Verify every vehicle before purchase
Document all verification checks
Use authorised verification services
Train staff on procedures
Maintain organised records

Consequences of Non-Compliance

Failing to verify can result in:

Purchasing stolen vehicles
Legal liability
Financial losses
Regulatory penalties
Reputational damage

Building a Compliant Process

Create effective compliance by:

Establishing verification policies
Integrating verification into workflows
Regular staff training
Audit and review procedures
Keeping detailed records

Conclusion

Number plate verification is essential for car dealer compliance in South Africa. It protects the dealer, customers, and supports the integrity of the motor industry.