Q&A

Arrival of the New Etios – Here to make the South African motorist smile!

No Comments »Written on May 17th, 2012 by jonckie
Categories: Car Insurance, Q&A, Vehicle
Tags: , , ,

New Etios

Let’s face it South African consumers have taken a pummelling of late. Economic stress is at an all-time high and the general cost of living is really beginning to take its toll (pun intended).

Against this backdrop the motor industry has seen the meteoric rise of the Sub-B segment of the market as customer demands for affordably priced, practical transportation increases by the day. Toyota has answered that call with the all-new Etios. A vehicle that has it all – space (biggest in class), pace (largest capacity engine in its price segment), kit (everything you need) and cost (from just R115 800). The newcomer also adds that elusive something extra – personality. That’s why the name “Etios” is so appropriate. It’s based on the Greek word “Ethos” meaning spirit, character, and ideals.

As Calvyn Hamman, Senior Vice President Toyota SA Sales and Marketing, is at pains to point out: “The Etios was conceived after some of the most extensive market research ever conducted in South Africa by a motor company. We observed every aspect of car ownership from the standpoint of the customer including general functions, performance, QDR (Quality, Durability, Reliability), and equipment. From there, we polished and enhanced the product offering and performance aspects that were truly needed, and eliminated any excessive specifications. As a result, we were able to strike the best balance between initial purchase price, running cost, performance and specification, which are all essential to a quality, affordable, “value for money” vehicle. After all, the Tazz left us with very big shoes to fill.”

A smile never goes out of style

In creating the Etios, the designer was faced with a daunting set of criteria:

  • Its looks had to appeal to as wide an audience as possible;
  • At the same time it still had to be visually exciting;
  • Practicality as a true five-seater family car was a non-negotiable – form had to follow function.

The all-new Toyota Etios fulfills this brief to a tee. Adopting the design philosophy of bold simplicity the newcomer is neatly proportioned and balanced in both hatch and sedan guise, while still managing to be extremely accommodating in the space department – both the sedan and hatch are genuine five-seaters.

Thanks to a long wheelbase which is tailored to suit each body type (2460mm for the hatch and 2550mm for the sedan), the Etios is not handicapped by long overhangs and the sedan in particular avoids the ‘tacked-on-tail’ look that aesthetically sabotages so many of its rivals - this despite the fact that it has far and away the biggest boot (595 L) in its class. The five-door hatch features a truncated rear that has more than a hint of the beloved RunX to it.

To round off the simplistic shape, the Etios has just a few designer touches:

  • The Etios grille – shaped like a smile of course, this reflects the new family face of Toyota;
  • Twin prominent bonnet creases add a touch of character;
  • An upswept character line follows the contours of the doors and infuses the design with dynamism.

Exterior ornamentation is used with classic restraint and is limited to chrome garnishing on the colour-coded grille as well as the hatch or boot lid (as in the case of the sedan) of XS models. Other external XS markers are the colour-coded door handles and mirrors, as well as the front fog lights. XS hatch models also come standard with a rear window wash/wipe system. Both Xi and XS variants feature 14-inch steel wheels shod with wheel caps.

Give us a big smile now!

“… the Etios’ interior certainly will bowl you over, not least because of the sheer space on offer. There is not a shadow of a doubt that the Etios is the most comfortable car in its class.” (Autocar India)

When it comes to people- and luggage-carrying capacity, the Etios plays its strongest trump card. Both the hatch and the sedan are paragons of roominess, capable of transporting five adults in sublime comfort. Generous dimensions play their part, but so does intelligent seat design. Not only are the front, bucket-type seats with integrated headrests ergonomically engineered to combat fatigue during long-distance drives, they’re also specially designed to eke out as much legroom as possible – both the sedan and hatch offer rear leg clearance of 160mm.

Ditto the back seat which is specially engineered with an extra wide squab to easily accommodate three people. (In the case of the hatchback version, the rear seat is foldable to extend the versatility of the cargo area.) Further contributing to this sense of spaciousness is the near flat rear floor with minimal intrusion from the transmission tunnel.

It’s not just people that are well catered for in the Etios, so is their luggage and other knickknaks. Here’s a quick rundown of some of the Etios’s spatial attractions:

  • 13-litre glove box – big enough to swallow a handbag or even a laptop;
  • Seven 1-litre-sized cup holders;
  • Driver and front passenger door pockets;
    • The sedan has a ridiculously cavernous 595-litre boot – by far the biggest of any of the compact saloons currently on sale.

Unleash your inner smile

Move indoors, slip behind the sporty three-spoke steering wheel and you’ll be struck by the cockpit-like feel that is created courtesy of the central instrument cluster which is angled towards the driver. The white back lighting for the semi-circular dials coupled with the three-dimensional LED graphics make a bold style statement and require only minimal eye movement in pursuit of excellent road visibility.

Ditto the twin, vertically-stacked air conditioning vents which also have some very practical applications. They are positioned in such a way to prevent the driver’s arm or the steering wheel from interfering with the air flow. Also, the top vent is aimed directly at the rear. This in combination with the strong throw of the air conditioning means that the back seat area is chilled within seconds. It’s worth mentioning that the enormous glove box has a built-in cooling function that’s more than up to the task of storing cool drinks for everyone on board.

At a glance, here are some of the comfort and convenience features that are sure to put a smile on your dial:

  • Electric power steering;
  • Remote central locking (XS only);
  • Tilt-adjustable steering column;
  • Air conditioning with clean air filter;
  • Glove box with cooling function;
  • Electric front and rear windows (XS only);
  • Accessory socket;
  • Manual headlamp levelling system;
  • Rear window demister (XS only);
  • Tachometer (XS only).

Miles of Smiles

A 66kW 1.5-liter in-line 4-cylinder DOHC 16-valve (2NR-FE) petrol engine featuring all-aluminium cylinder blocks has been developed from scratch and adapted to meet the specific needs of the South African market. Mated to a five-speed manual transmission, excellent fuel efficiency and drivability are the hallmarks of this drivetrain combination. The combined fuel consumption figures bear this out with the Etios returning just 5,9 L/100km and 6,0 L/100km for the sedan and hatch respectively. Engine output characteristics have been optimised with the emphasis on low speed torque (132Nm at 3000rpm) and this too is reflected in the very respectable 0-100km/h sprint which the Etios dispatches in just 11,3 seconds. Maximum speed is pegged at 165km/h.

Some other technical highlights:

  • Standing oil jet technology for piston cooling.
  • Forged crankshaft and connecting rod to achieve excellent durability.
  • A resin intake manifold is adopted, with the aim of realising a lightweight structure.
  • Electronically controlled throttle to achieve optimal engine management at all times and enhance fuel efficiency and drivability.
  • A hydraulic compound-type engine mount is used for the right engine mount to achieve both excellent ride comfort and low vibration when idling.
  • An engine mount with a dynamic damper is adopted for the left engine mount to reduce gear noise, thus achieving low noise and vibration during driving.
  • Suspension system tuned to achieve a supple, mild ride comfort that reliably traces the bumps in the road surface. A Macpherson strut suspension is adopted for the front suspension. Shock absorber anti-dust performance is enhanced, which in turn benefits shock absorber longevity in dusty regions. A torsion beam suspension is adopted for the rear suspension. Luggage compartment width has been expanded by positioning the suspension towards the outside, also in consideration to utility. A reinforcement brace is utilised for the rear suspension to ensure handling stability.
  • Fuel consumption is improved by adopting an EPS (Electric Power Steering) system (as compared to models equipped with conventional hydraulic power steering systems).
  • 3-way catalyst technology is adopted in consideration for the environment, thus realising low CO2 emissions - 140 g/km for the hatch and 138 g/km for the sedan.

Good things come to those who smile

With such high stakes in the B-segment Toyota has definitely played it safe with the new Etios. ABS (Anti-lock Brake System) with EBD (Electronic Brake-force Distribution) is equipped as standard on all models as are SRS (Supplemental Restraint System) airbags which are adopted for the driver and front passenger.

On the security front, an immobiliser is standard across the range, as are child protection locks on the rear doors and a LED high-mount stop lamp. XS models are equipped with remote central locking.

A smile costs nothing (well almost nothing)

Etios 1.5 HB Xi            -           R115 800;

Etios 1.5 HB Xs           -           R120 900;

Etios 1.5 SD Xi            -           R121 800;

Etios 1.5 SD Xs           -           R126 600.

There is a comprehensive range of accessories available for the new Etios including a body kit, protective mouldings, a selection of seat covers and stereo systems as well as carpet overlay sets and a Bluetooth kit to name just a few of the items. For a full list of approved aftermarket items, please see the Accessories document in the press kit.

All new Etios models come with a two-year/30 000 km Service Plan included in the purchase price (service intervals are every 10 000 km), along with Toyota's comprehensive three-year/100 000 km warranty.

The new Etios is supported by the ToyotaCare Roadside Assistance Programme and entitles customers to 24 hour roadside assistance, ensuring ultimate peace-of-mind motoring.

Vodacom appoints Frank.net to assist in offering insurance products

No Comments »Written on May 16th, 2012 by jonckie
Categories: Finding Insurance, Life, Q&A
Tags: , , , ,


The very competitive insurance industry is set to become even more competitive with cellular operator Vodacom entering the market.

Vodacom (VOD) has received the go-ahead to enter the South African insurance market having been recently awarded a long term insurance licence by the Financial Services Board (FSB).

This licence, along with the short term licence granted earlier this year, allows Vodacom to underwrite and sell insurance products.

Vodacom is able to leverage the direct links it has with its more than 30 million customers and dramatically reduce the costs traditionally associated with acquiring and serving customers. These savings enable Vodacom to extend greater value to its customers. Vodacom is also recognised as one of South Africa's most trusted brands, which is likely to be a major benefit when it comes to attracting customers who are looking for insurance products.

“Our insurance business proposition is simple; we are focused on providing Vodacom customers with unbeatable value. Our customers will benefit from the value and convenience that we are able to offer. The vision is to dissolve the barriers to entry for all South Africans previously unable to access insurance products,” says Mark Taylor, Managing Executive of Vodacom Financial Services.

As part of the strategic decision to enter the insurance market, Vodacom appointed FRANK.NET, South Africa's fastest growing direct life investment company which is owned and capitalized by Liberty Holdings, to provide administrative and claims support for its long term insurance offering.

“FRANK.NET is a good fit for us. The company has a proven track record in the long term insurance industry with the latest technology platforms and innovative ways to provide an excellent customer experience. We are excited about the depth of experience that FRANK.NET will bring and believe that they will provide excellent service that our customers expect,” says Taylor.

FRANK.NET's direct capability is purpose built to support the delivery and administration of insurance programmes and it currently does so for a number of enterprises.

FRANK.NET CEO, Lenerd Louw, said: “We are pleased to work with Vodacom to support their new long term financial products offering. The scale of FRANK.NET's direct capability enables us to easily support the delivery and administration of insurance programmes to help Vodacom leverage from our proven affinity platforms. We look forward to supporting Vodacom as they grow and develop exciting new products to address the financial needs of the South African population.” [Info from I-Net Bridge]

DNA Project highlights the importance of preserving the crime scene and DNA evidence

No Comments »Written on May 15th, 2012 by jonckie
Categories: Legal, Q&A
Tags: , ,

Tuesday, May 15, 2012: The DNA Project is a Cape Town- based initiative whose mission it is to raise awareness of the importance of DNA preservation at crime scenes, and in 2011 it combined forces with FoxP2 and created a TVC called ‘The Cigarette that saves lives’ which was flighted on Top TV last year, and DSTV and MNET in 2012.

To support the message of the TVC the creative team at FoxP2 conceptualized an activation to represent the loss and damage that first-on crime scene responders as well as the general public can effect to evidence left at a crime scene.  The activation took place on Tuesday morning, May 15, 2012 at the Cape Town Train Station and will show, using time-lapse videography of the activation, how the lack of proper preservation of a crime scene can destroy valuable evidence and the chance of a conviction.  The video of the activation will be posted on YouTube for public viewing.

The activation consisted of a large (8m x 6m) sand box filled with tiny stones of various colours depicting a mug shot of a convict holding up an ID board.  This box was placed in the busy open hall area of the Cape Town Metrorail station.  Commuters were encouraged to walk over the box, thus blurring the mug shot and making it increasingly difficult to see the convicts’ face.  The idea got the public involved in demonstrating how disturbing a crime scene can prevent criminals from being identified.

Commuters walking over the box and disturbing the image was captured using time-lapse video. This will be edited into a viral that is played at high speed in under one minute and used in a campaign over the social media network to spread awareness.

About The DNA Project:

After her father was brutally murdered in his Johannesburg home in 2004 and all traces of DNA and other forensic evidence were lost, destroyed and neglected due to the inexperience and lack of crime scene preservation awareness of the first on crime scene responders, Vanessa Lynch realised that something needed to be done to address this issue in SA and founded The DNA Project.   (See notes to editor).

Based on Interpol figures South Africa has high but manageable levels of property crime but an extraordinary high level of violent crime. It is South Africa’s high level of violent crime that sets the country apart from other crime-ridden societies; this finding is supported by CIAC data indicating that since 1994 recorded violent crime has been escalating at a faster rate than any other crime category.  It is primarily violent crime that fuels people’s fear of crime. To lose its label as crime capital of the world, violent crime levels have to drop substantially in South Africa, http://www.iss.co.za/pubs/CrimeIndex/01Vol5No1/World.html, as well as have our rate of conviction dramatically increase.

When is a Road in a Gated Estate regarded as a Public Road?

No Comments »Written on May 15th, 2012 by jonckie
Categories: Legal, Q&A, Traffic Fines
Tags: , ,

In recent months several visitors to the Arrive Alive website has complained about other road users driving recklessly and with a disregards for the safety of others within gated estates. We would like to use as an example one such an email sent to the Arrive Alive website:

Question:

"I have read your article on rules of the road and road safety in gated estates wherin you state that the"private roads " so often referred to are in fact Public Roads and fall under the Road Traffic Act 96 of 1996. I have an issue at the moment where a 4 year old child on his bike was allowed onto the "private road" in our estate without any adult supervision and coliided with our car because he could not stop. Our vehicle was stationery. We are taking the parents to the small claims court because they claim that children have the right of way in the estate according to the conduct rules of the HOA of the estate and refuse to pay damages.

The child was riding down the road ,which is one way, in the wrong direction. The collision accured because he was not visible to our vehicle as we came round a 90 degree corner. We were able to stop in time but not the child who collided with the front of our vehicle.

Where in the road traffic act does it say that the rules of the road on a public road also apply in estates ? We are attempting to prove negligence on the part of the mother. I would appreciate a comment and or the relevant reference in the act pertaining to road rules in estates."

Answer:

The relevant provisions are the definition of a public road and the presumption on public roads – section 69.
“public road” means any road, street or thoroughfare or any other place (whether a thoroughfare or not) which is commonly used by the public or any section thereof or to which the public or any section thereof has a right of access, and includes—
(a)        the verge of any such road, street or thoroughfare;
(b)        any bridge, ferry or drift traversed by any such road, street or thoroughfare; and
(c)        any other work or object forming part of or connected with or belonging to such road, street or thoroughfare;
Sec 69.    Presumptions regarding public road, freeway and public road in urban area
(1)        Where in any prosecution in terms of this Act it is alleged that an offence was committed on a public road, the road concerned shall, in the absence of evidence to the contrary, be presumed to be a public road.
(2)        Where in any prosecution in terms of this Act it is alleged that an offence was committed on a freeway, the road concerned shall, in the absence of evidence to the contrary, be deemed to be a freeway.
(3)        Where in any prosecution in terms of this Act it is alleged that an offence was committed on a public road in an urban area, the road concerned shall, in the absence of evidence to the contrary, be presumed to be a public road in an urban area.

Alta Swanepoel

Rules of the Road and Road Safety within Gated Estates and Communities

Also view:

Can Vehicle Branding reduce my Car Insurance premiums?

No Comments »Written on May 14th, 2012 by jonckie
Categories: Car Insurance, Finding Insurance, Q&A, Vehicle
Tags: , , ,

Would my vehicle be less attractive to car thieves if I brand the vehicle with bright colours etc? This thought has crossed my mind while thinking of ways to reduce the risk of vehicle loss through theft and hijacking. The Polo that I am driving at the moment has a visible scar on the back bumper where an electric gate closed on it. This was rather annoying when it happened, but as time went on I considered this to be an anti-theft feature.

I have often asked the question – “If I was a thief  - would I take the vehicle where there is still repairs or alterations to be made or would I rather take the vehicle without any distinguishing features?” This also prompted my question – “Can vehicle branding reduce my car insurance premiums?”

We often find the larger companies branding their fleets of vehicles and this serves as effective roaming advertising as well! I do believe that these vehicles are less likely to be taken by thieves than your nice looking non branded vehicle!

Car Insurance and Vehicle Branding

I decided to raise this question with a few of the insurers and would like to share the response received from Discovery Insure:

“Branding probably does have an effect on theft risk in the same way that unique or unusual vehicle brands are lower risk (I doubt many Ferraris ever get stolen!). Much easier to find a branded car quickly than a White BMW for example.

The incidence of branded cars in personal lines insurance is very low and hence this is not a question that a personal lines insurer would ask. Also it at best only affects theft risk and not really accident risk (which is the larger risk an insurer covers)

To the best of our knowledge, ‘vehicle branding’ is not used as a rating factor during initial pricing in personal lines currently, meaning that it is not something that is asked during the initial selling process.

I am unable to assist you with answering your questions with regards to theft risk associated with vehicle branding as I am unaware of any analyses done in this regard. One thing that might be useful to consider is that speed at which branded cars could be re-sprayed following the theft event.

Unfortunately I am also unable to comment on Fleet insurance which is not covered by Discovery Insure.”

Conclusion

Even though branding your own vehicle might not at present provide you with a reduced car insurance premium, there is more at stake than just payment of your monthly premium. It is always better not to have your vehicle stolen than to have peace of mind that the insurance can cover the theft!

If you are a cautious vehicle owner you will do more than just pay your car insurance premium to protect your vehicle and yourself.

If we are able to reduce the chances of being hijacked we might be well advised to consider such options. The branding of vehicles might be advantageous both to advertise our business and to reduce our chances of becoming victims of vehicle crime.

We would advise that you consult with your insurance company on this matter and where you are a business owner with several vehicles on the road, vehicle branding would definitely be an important consideration to bring to the attention of your car insurance company!

Here is a nice example of visible vehicle branding from my photographer friend Anton Geyser from Auto Excellence in Centurion:

Rugby15 branded vehicle at Loftus Versfeld

Rugby15 branded vehicle at Loftus Versfeld

How Big is the Pay As You Drive Insurance Telematics market worldwide?

No Comments »Written on May 9th, 2012 by jonckie
Categories: Car Insurance, Finding Insurance, Insurance Telematics, Q&A, Vehicle
Tags: , , , , , , , , , , , ,

We have written extensively in recent months on Insurance Telematics. Last week we shared a story titled "Telematics Expert to address European Conference on Reinventing Telematics and Vehicle Insurance"

But why do we do this and why do we believe that insurance telematics is such an important topic?

The best answer is perhaps to be found in research done and a comprehensive report compiled by PTOLEMUS Consulting Group. We would like to share content from an article on these findings:

BRUSSELS, May 8, 2012 -- /PRNewswire/ --

Pay As You Drive will shake up motor insurers worldwide

International strategy consulting firm PTOLEMUS Consulting Group has published the most comprehensive report ever written on Insurance Telematics.

The 400-page strategic report is set to become the industry's reference document, covering the global car insurance landscape, new telematic technologies, how they are turning the economics of the market upside down, response strategies for insurers and much more.

A free 60-page abstract of the study is available at http://www.ptolemus.com/insurance

With over 2 million customers, the Pay As You Drive (PAYD) market has reached its tipping point. We expect it to be multiplied by 50 by the end of the decade. Telematic-enabled policies will then generate €50 billion in premiums to insurers who have seized the opportunity.

This is good news for consumers worldwide. Low mileage- and safe drivers will stop subsidising fraudsters, road warriors and dangerous drivers. And save up to 50% on their car insurance premiums.

Frederic Bruneteau, Managing Director, describes the impact for insurers:

"Everybody has a plan until they get punched in the face, famously said Mike Tyson. Well, this is what could happen to numerous motor insurers if they do not reshape their strategy swiftly.  The Internet is revolutionising all sectors and this is now the turn of the auto insurance industry. By enabling insurers to build their pricing based on the actual, real-time behaviour of drivers, PAYD redefines entirely the way to charge for motor risks. Underwriters must adapt to the new connected way of doing business.

After Italy, the wave is now reaching the UK and the US, where Moody's recommended underwriters to "adopt it sooner than later". We expect all developed countries to embrace the new model, with local technology- and business variants."

The study is notably based on 2 years of research and over 80 interviews with key industry players in 18 countries including ALD Automotive, Allianz, Arval, Aviva, Axa, Continental, Covea, Daimler, Denso, the Co-operative Insurance, the European Commission, Generali, Groupama, Hughes Telematics, ING, Navteq, Octo Telematics, Orange, MACIF, Magneti Marelli, MAIF, Mapfre, Michelin, NXP, PSA Peugeot Citroën, Qualcomm, SAP, Standard & Poor's, Telit, TomTom, Toyota, Trimble, Vodafone and Zurich.

Along with 220 tables and graphs, the report provides:

  • Insights on the impact of the gender ruling, eCall, ERA Glonass, CONTRAN 245, the new Italian law, the emergence of the smartphone as a data probe, etc.
  • Learnings from in-depth case studies of ALD Automotive, Amaguiz, Coverbox, Discovery Insure, GM OnStar, Hollard Insurance, Insurethebox, Liberty Mutual, MAIF-MACIF, Norwich Union, Octo Telematics, Progressive, Solly Azar, State Farm, Unipol, Uniqa and Zurich;
  • The evaluation and ranking of 60 telematic suppliers and detailed analysis of 13 solutions;
  • Clear recommendations on how to professionally address privacy issues;
  • A list of 40 patents applicable to PAYD;
  • A strategic review of the telematic insurance value chain and how it will change;
  • The results of insurer business case studies in 4 countries;
  • 10-year market forecasts for motor insurers, Telematic Service Providers, Telematic Technology Providers and mobile operators;
  • Strategic recommendations to key stakeholders including governments, insurers, automotive OEMs, mobile operators and telematic suppliers.

The Full Study and its free Abstract can be downloaded at http://www.ptolemus.com/insurance

About PTOLEMUS

PTOLEMUS Consulting Group is the first strategy consulting firm entirely focused on the domain of location-based services and telematics. Run by Partners in Brussels, Paris, Milan, Munich and Boston, PTOLEMUS assists leading companies in defining and executing their strategy.

Insurance aggregator and price comparison site can also compare travel packages

No Comments »Written on May 8th, 2012 by jonckie
Categories: Finding Insurance, Q&A, Travel Insurance
Tags: , ,

Do-it-yourself – to avoid agent commissions – is considered the most cost effective route to take by South Africans when planning a local holiday.

However, unless you DYH (do your homework), the savings you elicit from not using a travel agent will more than likely be off set by the cost of making the wrong choice or effectively, taking a deal that really isn’t the best deal.

According to Amanda Thomas, General Manager of hippo.co.za, South Africa’s first online insurance aggregator and price comparison site, “Spreading your net wider will lessen the odds of missing a really good deal. The rule of thumb when shopping around for anything, including holidays, is to get at least five quotes or options and compare those.”

While travel agents do have an important role to play, Thomas says that prospective holiday makers do have the opportunity to compare holiday deals themselves.

“You don’t have to do your homework or employ anyone to do it for you. You can be your own travel agent quite easily and very quickly with www.hippo.co.za. There is a facility on our site which allows you to search available accommodation across the country, according to your individual specifications.

“Our search engine sources data, including hotels, car rental companies and airlines, and within seconds you will get a list of options, including accurate pricing for the times you are planning to travel.

“It is really the quickest and easiest way to evaluate travel options bar getting someone else to do it for you,” explains Thomas.

According to Thomas, www.hippo.co.za introduced the travel comparison feature on the website in February 2009 based on the rising popularity of travel aggregator sites in the United Kingdom.

“The use of travel aggregator sites catapulted during the recent recession when people became stricter with their money and by virtue, more discerning about finding the best holiday deals. In South Africa, people are more open to shopping online for goods and services. Using aggregator sites to compare products and prices is the easiest way to do it.

“From our initial offering, which was to enable people to compare insurance prices from one portal, we have expanded our services considerably. The capability to compare travel solutions, was a natural step in our evolution.

“Now people don’t have to have a travel agent to have the assurance that they’ve found the best travel deal,” concludes Thomas.

For more on Travel Insurance also view:

Insurance Chat and Travel Insurance

Experts advise on a Step-by-step guide to a trouble-free car purchase

No Comments »Written on May 7th, 2012 by jonckie
Categories: Car Insurance, Q&A, Traffic Fines, Vehicle
Tags: , , , ,


Next to your house, your biggest single purchase is likely to be your car. You go to great lengths to ensure that the path leading up to your purchase of a house is, as far as is humanly possible, devoid of pitfalls.

Somewhat surprisingly, many buyers of motor vehicles do not adopt the same procedures. Because it’s a really big-ticket item, you should not hesitate to treat a motor vehicle purchase with the same circumspection as you would the acquisition of a home.

We would like to share a very informative opinion piece by Trevor Browse, Managing Executive at MFC, a division of Nedbank, on what to keep in mind when purchasing a car:

Avoid the pitfalls when buying a Car

You go to great lengths to ensure that the path leading up to your purchase of a house is, as far as is humanly possible, devoid of pitfalls. Somewhat surprisingly, many buyers of motor vehicles do not adopt the same procedures.

Because it’s a really big-ticket item, you should not hesitate to treat a motor vehicle purchase with the same circumspection as you would the acquisition of a home.

In what follows, I offer a step-by-step guide to peaceful post-purchase nights.

After you have decided on the brand/make and type of vehicle you want to purchase, the most important decision is selecting the dealership you use for your purchase.

Ensure that the dealership is a member of either the Retail Motor Industry Association (RMI) or Independent Dealer Association (IDA). Both these associations have strict rules of accreditation and membership, code of conduct, compliance with legislation, etc – rules designed to protect your rights and interests.

The prospective pitfall here is that a dealership might disingenuously and dishonestly claim membership of one of these bodies. Therefore, insist on proof of membership while also checking that the dealership is approved with the major finance houses, as this will provide peace of mind and comfort that the banks are happy with the financial status of the dealership.

This relationship is normally governed by a legal agreement between the dealership and the financial institution.

Some dealerships have joint-venture finance arrangements backed by one or more of the major banks. Be careful when considering in-house finance not backed by the major banks.

Duties of the Sales person

The sales person is responsible for demonstrating the vehicle of your choice and for assisting you with all vehicle-related questions like technical aspects, the price, mileage, accessories, extras, guarantees, warranties, service plans, maintenance plans, etc, and advising which services are included in the deal and which are available as part of the finance package.

The sales person will prepare an offer to purchase, which you will need to sign. Special emphasis must be placed on obtaining clarity on each item listed and the relevant cost. Be on the lookout for excessive delivery/on-the-road, licence and registration fees.

Insist on test-driving a used vehicle in different types of traffic conditions. If you feel it is necessary, insist on an independent roadworthy test.

When buying a used vehicle, one must consider warranty, service and maintenance plans, which are offered by most reputable dealers.

Finance and Car Insurance Considerations

Be well aware that the finance and insurance (F&I) consultant can play a critical role in the car-buying process.

Ensure that the F&I is accredited in terms of the National Credit Act (NCA) to facilitate and assist with both your finance application and insurance/assurance requirements. Insist on a valid NCA agent card to be presented by the F&I before you proceed with the application and relevant documentation.

The card is proof that the F&I is accredited to provide financial advice. F&Is undergo compulsory training to ensure that you are correctly advised on the finance options available. They are also approved by the relevant banks to act on their behalf.

The F&I will also submit your application for finance to a bank of your choice on your behalf. Bear in mind that it is your right to choose the bank, just as it is your right to consent to where your personal information is sent.

The F&I will advise on the outcome of the application and applicable conditions. Besides knowing the dealership, your interrelationship with the F&I is probably the second most important step in the car acquisition process.

If your application is approved in terms of the NCA, the F&I must provide you with a written quote from the bank detailing:

• the amount approved;
• the deposit required;
• the contract term;
• the interest rate (look out for fixed- or linked-rates options);
• any fees and charges payable (the maximum initiation fee allowed by the NCA is R1 140, including VAT, and the maximum monthly service fee is R57, including VAT); and
• the total cost of credit over the term of the contract.

Check out whether or not there are any residual-value or balloon payments included in the finance structure. These are large once-off payments at the end of the term and they could have huge financial implications once the structure terminates.
Also, take your time in considering the quote, as this is normally valid for up to 30 days. Then, once you have accepted the quote, a finance agreement will be prepared by the bank for signature.

For you, the client, the following are important aspects of the vehicle purchasing procedure:

• A clean credit record is vital in obtaining finance. Besides the affordability check, any adverse reports/blacklisting and bad credit references will be taken into consideration and will have a negative impact on your application and the conditions of approval.
• A clean credit record will also allow you to negotiate better terms and interest rates.
• Proof of a valid driver's licence will be required as part of the application process.
• Proof of comprehensive insurance will also be required and must be valid for the duration of the agreement. This is important to protect you against accidents, theft and total loss of the vehicle.
• Once the vehicle is ready for delivery, the finance agreement must be signed with the F&I, after which delivery can take place. This is probably the third most important step.
• Only when you are happy with the vehicle should you sign the relevant paperwork, authorisation and release for payment by the bank to the dealership. The bank is obliged to pay the dealership for the vehicle when the dealership has provided the bank with the contractually binding documentation.
• The duly signed documentation is confirmation to the bank that you, the client, were happy with the vehicle and the terms of business and took delivery of the vehicle.
• The signed delivery note, once in the dealership's possession, is as good as cash. The bank cannot withhold payment to the dealership if the client has signed acknowledgement of acceptance and agreement.
• Check the finance agreement carefully, with special attention paid to:

 the loan amount;
 the deposit amount;
 extras and accessories;
 value-added products appended to the agreement;
 the term of the contract;
 the interest rate;
 the monthly repayments;
 debit order details;
 payment due date; and
 residual value – balloon payment structure.

Trevor Browse is Managing Executive of MFC, a Division of Nedbank

Telematics Expert to address European Conference on Reinventing Telematics and Vehicle Insurance

2 commentsWritten on May 4th, 2012 by jonckie
Categories: Car Insurance, Finding Insurance, Insurance Telematics, Vehicle
Tags: , , , , , , , , , , , , , , , ,

One of the biggest innovations in the Car Insurance Industry is the use of vehicle telematics to ensure accurate pricing of car insurance products. Through effective monitoring of driver behaviour car insurance companies are able to provide car insurance cover based on scientific data. Not only does this have an impact of car insurance premiums but can also make a significant impact on road safety and changing driver behaviour.

Ctrack is one of the leaders internationally in providing the hardware and software used for insurance telematics. We reported previously on how the expertise of Formula 1 and Ferrari designer Rory Byrne was instrumental in the design of the DQ Track system used in the Discovery Insurance offering through Discovery Insure.

Deon du Rand, Executive Director Strategic Projects, Ctrack

Attendees of a European Conference on Insurance Telematics will now be able to gain more insights as to how this technology can be used in the battle to ensure effective, fair and affordable car insurance premiums.

Deon du Rand, Executive Director Strategic Projects of Ctrack is presenting at the international Insurance Telematics Europe 2012 conference in Londen. With Ctrack being a pioneer and leader in latest Insurance Telematics technology, including full Driver Behaviour Analysis, a number of potential clients and partners have already scheduled individual meetings with Deon and the Ctrack UK team to learn more of what Ctrack can offer the Insurance industry.

In his presentation titled “ Reinventing Telematics and Vehicle Insurance”, Deon highlights the disruptive technology and market forces developing between the Stolen Vehicle Recovery (SVR) market and the new vehicle insurance models. He predicts the slow demise of the traditional SVR market and highlights the benefits of leading Telematics- and Insurance companies forming partnerships to address the new market dynamics and innovation required for successful Insurance Telematics business models. Deon will also the show results from their successful partnership with Discover Insurance, based on the unique concept combining proven behavioural change models with lifestyle benefits to improve Driver- and Motoring behaviours.

Case Study on Vehicle and Insurance Telematics

During his presentation Deon du Rand will use actual driving data from South Africa in a case study that promises to be most insightful

A holistic value proposition for the telematics provider, insurers and the insured, featuring an exclusive Case Study – showcasing +15,000 vehicles fitted with the Ctrack insurance telematics solution for Discovery Insurance:

• Learn how a Telematics – Insurer partnership approach is delivering real bottom line benefits to the partners and their insured clients utilising Ctrack’s interactive telematics technology, while improving safety and motoring habits.
• Hear how Human Behaviour Change models have been used to develop and implement driver incentives and lifestyle programs with value added telematics features and feedback mechanisms which put the driver in direct control of his monthly benefits and savings
• Explore how Ctrack’s high resolution technology and on-board data processing allow for improved risk ratings, reducing the volume of data required for the back-office rating engines while allowing the necessary real time, non-distracting, in-vehicle feedback on drive style that encourages permanent behavioural change.

For more on vehicle and insurance telematics also view:

What is Insurance Telematics and how will it impact on car insurance?

Vehicle Insurance Telematics

Driver Intelligence to be measured by Discovery with Discovery Insure

Outsurance activates technology to reward safe driving behaviour

Pay As You Drive and Car Insurance

Vehicle Telematics, Accident Investigation and Fleet Management

What can I do to the annoying person always parking his ugly car in front of my home?

No Comments »Written on April 30th, 2012 by jonckie
Categories: Car Insurance, Q&A, Traffic Fines, Vehicle
Tags: , , ,

Do you sometimes wish you can do something to the annoying person who uses the road in front of your home as a parking bay? Can you do something?

Since we have often referred to parked car collisions in our discussion of car insurance we would like to share this interesting request for assistance emailed to the Arrive Alive road safety website with our readers:

Question:

A non resident of our road parks his vehicle out side of my house each day,early morning and then walks to the nearby railway station only returning and removing the vehicle after 6 pm.Often over weekends the vehicle will be left abandoned from early Friday morning to the following Monday evening.The vehicle is in very poor condtion and hardly roadworthy and is very unsightly outside of my property. I have asked him not to park outside of my house but he has ignored my request.

Is there anything legally that I can do to stop him from parking outside my house even though he his not obstructing my access and there are not any "no parking" signs where he parks.

Answer:

A difficult issue as there are too little facts given in my view.

Abandonment of a vehicle is not an issue as I assume it is in an urban area and 7 days is the time frame applicable before action can be taken. However if the vehicle is clearly in a poor condition then a call to the local traffic department should help to check the roadworthiness. Perhaps it is leaking oil, which would be an offence or is the licence disk up to date and correctly displayed, or is he causing a commotion when he parks that is disturbing the peace, etc, etc.

The writer does not say where he lives, but it is clearly in the Southern Suburbs of Cape Town and I could refer it to the City Deputy Traffic Chief who could assist in that regard. However in respect of the parking, if the person is parked legally then there is nothing to do and I would not easily move my car if it was me and I was conveniently and safely parked.

In essence we live in a democracy and we can park where we “legally” can and operate a road worthy vehicle.

Perhaps not the answer the writer is wanting but with more information he can perhaps be helped.

Additional info provided in response:

The said vehicle has been parked outside my house since early Thursday morning and has not moved.

The vehicle certainly looks unroadworthy (full of dents ,cracked windscreen, bald tyres,etc) and I have just placed a call through to the Metro Police reporting the matter and they have undertaken to come and inspect the vehicle.

I take your point regarding the fact that one can legally park anywhere however as I am sure you will appreciate it is a little frustrating having a wreck of a car parked outside of your house for days on end with no sign of the owner.

I really appreciate the assistance that everybody has given me in this matter and hopefully the Metro Police can sort this out.

Also view:

What does your insurance company deem to be secured parking?

For more on Car Insurance Claims and Parking view:

  1. Parking with caution can prevent vehicle theft
  2. What does the law say about ‘Storing’ vehicles by parking on a public road
  3. Car Insurer finds women fear parallel parking!

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