In a move likely to send shock waves through the country's motor dealership networks, BMW Financial Services - the car maker's vehicle finance subsidiary - has been ordered by the National Credit Regulator to refund its customers "on-the-road" fees added to their credit agreements.
Dealerships add this fee, also referred to as a "service and delivery fee" or "dealership fee", routinely to finance agreements without a breakdown of what it covers.
In BMW's case, the fee is between R3000 and R6000.
Asked how many BMW buyers were in line to be refunded, the NCR enforcement manager Jacqueline Peters said the regulator wouldn't know that until BMW Financial Services submitted an audit report, as they were compelled in an NCR compliance order.
An on-the-road fee is not among the list of extra charges the National Credit Act allows credit providers.
Motor dealerships charge customers a fee for vehicle licensing and registration over and above a fee levied by the state.
Pressed to reveal what the on-the-road fee covers, dealerships list the likes of a pre-delivery check, valet, fuel and even gifts.