WeBuyCars in landmark PPP to ease vehicle registration process

A ground-breaking public-private partnership (PPP) between online used car dealer WeBuyCars and the Road Traffic Management Corporation (RTMC) has been launched to improve vehicle registration and change of ownership process.

The new online platform will allow for a seamless, convenient, and efficient method for motor vehicle dealers and financial institutions to transact directly with the National Traffic Information System (NaTIS) without physically handling documents or visits to registering authorities.

However, questions have been asked about the transparency of the process, the costs of transactions on the platform, and the revenue stream it may take away from municipalities.

The RTMC, an entity of the Department of Transport, piloted the solution with WeBuyCars prior to its launch and full implementation for the motor vehicle trading and financing sector on Tuesday.

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RTMC CEO Makhosini Msibi said at the launch on Tuesday that car dealerships, vehicle traders and banks will get first access to the online platform, with the general public getting access next year.

Transport Minister Sindisiwe Chikunga said the launch marks a pivotal moment in the Department of Transport’s ongoing efforts to improve the delivery of services within the realm of traffic management.

She said vehicle crime syndicates and fraudsters will not feel good about this launch because it will “pinch where it matters most”.

Substantial growth

Chikunga said the online licensing of vehicles has experienced substantial growth since its introduction, with 708 330 vehicle licences renewed through the platform to date and a cumulative sum of 122 959 renewals successfully executed during the previous 30-day interval.

“The impressive results inspire us with a feeling of confidence as we approach this critical juncture in our efforts to improve service provision,” she said.

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The current implementation phase “signifies a notable progression in our endeavours to digitise our services, augment convenience, and redistribute resources for alternative objectives”.

“The use of online registration and transfer of ownership has the ability to mitigate the burdensome workload experienced by registering authorities, so empowering officials to improve their performance in several other areas.”

No additional costs

Msibi said there would not be any additional costs to motorists for using the online platform, which is a “value add” in terms of the service the RTMC is offering.

He referred to the initial error in the published costs of various online transactions, which indicated that online registration would cost R700 instead of R300.

“We have corrected this, and this is the value add,” he said.

WeBuyCars CEO Faan van der Walt said the launch marks the commencement of a PPP with the RTMC and described the online platform as a “revolutionary step forward for vehicle registrations within South Africa”.

“We are extremely proud and excited to be among the first to pilot the online registration and notice of change of ownership system with RTMC and the Department of Transport,” he said.

“The Covid-19 pandemic emphasised the importance of contactless transactions and spurred the evolution of online platforms for conducting business across private and public sectors.”

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Van der Walt said the shift away from physical transacting and streamlining bulk services within registration authorities would undoubtedly enhance public service delivery.

He said this transformation, facilitated by the online platform, will encourage operational efficiencies within vehicle trading and financial sectors.

“These efficiencies promise improved service delivery for both public and private clients, which will ultimately be the beneficiaries of this initiative.”

Quicker and safer

Van der Walt said online transacting is a dream for WeBuyCars because moving to paperless transactions means they can be done quicker and safer – and fraudulent documentation can be avoided.

He said WeBuyCars buys more than 12 000 cars a month, and quite often encounters fraudulent documents or invalid documents or transactions where they are unable to register the vehicles.

Van der Walt said the online platform will allow them to identify such vehicles before purchase, and either help the client or report the crime because syndicates try to sell their cars to WeBuyCars.

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“We will just eliminate that. We have already arrested [a] few people at our premises lately using the new technology.

“We lost about R8 million worth of vehicles in the prior period because we had to give vehicles back to the police because they were either cloned, stolen or involved [in] some fraudulent activity.

“Slowly but surely, loopholes are being closed, and the digitalisation of NaTIS documents goes a long way towards achieving that,” he said.

Due for integration

Kia South Africa CEO Gary Scott said at the end of the day, all of the world’s problems will be solved with digitisation and technology.

Scott said eNaTIS is one of those assets probably due for integration with the rest of the world.

“There is a lot of risk associated with the paper trail, and if this moves to a world where there is more efficiency, where dealers can add value, where there is a lot less friction for consumers and dealers in the motor trade, that has got to be a winner.

“We have got to look at over time whether those costs can continue to come down. We are all very painfully aware in this economy how marginalised the consumer is.”

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Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenage expressed the hope that the partnership will reduce the cost to society.

“The RTMC’s recent approach to digitisation in regard to driver licence renewals, vehicle licences [and] roadworthy certificates appeared to add digital costs,” he said.

Duvenage said PPPs are obviously welcome, particularly if they lead to improved efficiency, but efficiency must not come with substantial cost increases.

He added that there is a need for transparency about PPPs to ensure they do not lead to excessive enrichment of private companies at the expense of society.