What the dealer must now tell you
On the road fees are the charges a dealer adds to the price of a financed vehicle for things like the pre delivery inspection, the roadworthy certificate, licensing, number plates, delivery and fuel. They are lawful. What has changed is that the credit provider must show you exactly what they are and give you the choice not to finance them.
That comes from the Supreme Court of Appeal in National Credit Regulator v National Consumer Tribunal and Similar Matters, handed down on 12 September 2025. The judgment sets out three consequences for credit agreements.
- Any on the road fees added to the purchase price must be specified, and the credit provider must clearly state the nature and cost of each item.
- You must be asked whether you want to pay the on the road fees in cash or have them financed as part of the amount deferred.
- To make that choice properly, you must be told the difference between the cash price of the fees and the total cost of those fees including interest and all other charges if they are financed.
The court was explicit that this applies to future cases, not to agreements already concluded during the period of uncertainty in the industry.
Why a small fee is not a small amount
The court’s concern was that a modest fee financed over a long term stops being modest.
It used an example from the high court minority judgment of a car valet costing about R100. Financed as part of the deferred amount at 8% over 72 months, the judgment says the consumer would have paid R676 over the life of the agreement, and R703,60 at 10,50%. The court noted that nothing in the papers showed consumers were having this pointed out to them.
The judgment also records what the fees actually looked like in practice. BMW’s pre agreement showed an item described as On Road cost, dealer. Dealers initially set those fees arbitrarily, ranging from about R2 900 to R4 950, with BMW monitoring them so they did not exceed R6 000. Volkswagen classified the item as Service and Delivery. Mercedes-Benz said that before 4 December 2017 it could not itemise what the fees comprised, even after asking dealers.
Vehicle finance agreements typically run 60 to 72 months. Interest on a few thousand rand of fees over that period is where the money is.
What the case was actually about
The National Credit Regulator investigated on the road fees in the motor retail industry in 2017 and issued compliance notices against Volkswagen Financial Services, BMW Financial Services and Mercedes-Benz Financial Services. It argued the fees were prohibited charges under sections 100, 101 and 102 of the National Credit Act 34 of 2005, and ordered the financiers to stop charging them and refund consumers.
The Regulator lost. The Supreme Court of Appeal dismissed all three appeals, with each party paying its own costs.
The reasoning matters more than the result. The court held that section 102(1) contains a closed list of fees and charges a credit provider may add to the principal debt, and that a credit provider cannot close its eyes to the agreement it is asked to finance. But it also held that accessories and services reasonably related to the purchase price, things like a sunroof, alloy wheels, a maintenance plan or a tyre warranty, form part of the principal debt and are not section 102 charges at all. On the road fees fell on that side of the line.
The court added a warning that the label does not decide the question. It is the nature of the charge that counts, not what a credit agreement calls it. A prohibited charge dressed up as a Service Charge, an On the Road fee or an Administration fee is still prohibited.
The matter is not finished
The Regulator applied for leave to appeal to the Constitutional Court, and the case is on the court’s roll as National Credit Regulator v National Consumer Tribunal and Others, CCT 302/25, with a date of 3 September 2026. No judgment had been published at the time of writing.
Until the Constitutional Court says otherwise, the Supreme Court of Appeal position stands. On the road fees may be financed, and the three disclosure requirements above apply.
What to do before you sign
| Step | Why |
|---|---|
| Ask for the on the road fees itemised | The judgment requires the nature and cost of each item to be stated |
| Ask for the cash price of those fees | You are entitled to know it before deciding |
| Ask what the same fees cost financed | Including interest and all other charges over the full term |
| Decide whether to pay them in cash | You must be offered this choice, not assumed into financing |
| Compare the dealer invoice with the credit agreement | The Regulator’s complaint was that these did not match |
Check the quotation and the pre agreement statement, not just the final contract. That is where the line items appear. If a charge is described only as a service or administration fee with no breakdown, ask what is in it before you sign.
Your credit record determines the rate you are offered, which determines what those financed fees end up costing, so check your credit score before you start shopping. Note also that a roadworthy certificate is one of the items often bundled into these fees, and the rules on when one is required are worth knowing. Vehicle buying is running at pace, with new car sales at a 12 year high, which makes the paperwork easier to rush.
Where to check
The National Credit Regulator handles complaints about credit agreements and can be reached through www.ncr.org.za. The National Consumer Tribunal adjudicates referrals under the National Credit Act at www.thenct.org.za. The full Supreme Court of Appeal judgment, case number 667/2023, is published on SAFLII at www.saflii.org, and the Constitutional Court roll is at www.concourt.org.za.
