The man behind the notorious “Drive a new car for R699” scheme is back with another new car deal that has buyers – and a major bank – crying foul.
Albert Venter of Pretoria introduced the “New car for R699” deal to the SA market in 2008 under his company Satinsky 128 (Pty) Ltd.
He sold about 25,000 entry level cars via a scheme that saw buyers enter into two contracts: one with a bank for the full instalment and another with the mysterious promotions company, Blue Lakes, in terms of which they had to plaster their cars with stickers advertising the “Drive a new car for R699” deal to get a monthly advertising fee.
The scheme worked for many people for several years, but began to wobble in early 2014 when the advertising fees were suddenly slashed, and then imploded altogether in July that year when the fees stopped completely.
Many were forced to extend their bank loans to afford their monthly instalments, and some are still paying off those now old cars as a result.
Venter’s new company is called YapYap, and he’s driving sales via adverts on Facebook and Instagram.
An ad posted last week offers a 2020 Toyota Etios for R2,799 a month – first payment due only in November – with free insurance for the first month. “Blacklisted and debt review welcome.”
But many who took up the offer have complained that the deal they committed to was very different from what they were led to believe.
Last month Motor Finance Corporation (MFC) – a division of Nedbank – started to get complaints from many of the 34 YapYap clients a couple of dealerships had signed up this year.
The bank has since terminated the “approved dealer code” of the dealerships that were obtaining MFC finance for YapYap clients, and instituted legal proceedings, according to MFC managing executive Trevor Browse.
“We have sent a communication to all 3,500 MFC approved dealers, warning them that if they are caught fulfilling YapYap deals their dealer code will be immediately terminated,” he said.
Patricia Nkabinde of the Free State responded to a YapYap Facebook advert for a Datsun Go, enticed by the low instalments – R2,300 a month – and “no residual” assurance, on what was to be her first new car.
“Everything went so quick, from applying to getting approved and to delivering the car to my house,” she said. “I wasn’t given even a minute to browse through before I could sign.
“They told me I’ll get a copy after seven working days, but after two weeks I didn’t have my contract so I called the bank (MFC) and found out that there is a residual of R43,000 after 72 months of paying that instalment,” she said.
“To date, I haven’t received my documentation.”
As for the month’s free insurance, Nkabinde says, she received a WhatsApp message a month after receiving the car advising her to insure her car as soon as possible.
Riekie Gilliland of Rustenburg bought a Renault Kwid in July. Given that YapYap also has a car rental offering, she says she wanted to buy the car.
“I was told it was R1,899 per month for 72 months, and I checked whether there was a residual amount to be paid, and I was told there wasn’t, as the advert states.”
She was told her application was approved and asked to go to Renault The Glen in Sandton to sign the contract and collect the car.
Gilliland and her husband were fetched from their Pretoria home by YapYap’s marketing manager and driven to the dealership on July 17.
I bought one of the Satinsky cars and battled to pay for it after the advertising fee stopped, but I did it, and I still have it!
— Riekie Gilliland
“He told me that I am going to sign the documents from MFC, and in September I would sign another contract which will be the agreement between me and YapYap, and from then I will pay a monthly instalment of R1,899 until the car is paid off.
“They are clever, because there is nothing on paper of this promise.”
The contract waiting for her to sign at the dealership specified a monthly instalment of R3,652 a month for 72 months and a residual of R52,000.
The promised insurance also didn’t materialise in Gilliland’s case.
It’s not the first time Gilliland has been taken in by a Venter car deal.
“I bought one of the Satinsky cars and battled to pay for it after the advertising fee stopped, but I did it, and I still have it!” she said.
El-Roy Cook of Edgemead, Cape Town also bought a new Kwid via YapYap.
“On delivery of the vehicle they just let me sign a contract without giving me a chance to go through it; they assured me that it was the deal they advertised and a copy of the contract as well as the certificate of the ownership of the vehicle would be e-mailed to me the next day,” he said. “But they have not done this to date.”
He was told he’d pay R1,899 a month for 72 months, but the contract states R3,200 for 92 months.
“I am newlywed and have a two-year-old child, and I was completely shocked by the amount,” he said.
Nedbank has since cancelled the deal.
Thabang Photwane of Limpopo met Venter in late July while signing the documentation for a Nissan NP200 – he was told he’d pay R2,500 a month from November.
“Then MFC called me to say I’ll be debited from September an amount of R4,494 every month.”
He rejected the request, and MFC helped him to cancel the deal.
MFC head of dealer risk Pero Roux said YapYap’s adverts did not disclose the term of the contract and total cost of the deal, contravening the National Credit Act.
“The clients submitted online vehicle applications to YapYap without knowing YapYap is not an accredited dealer of MFC and MFC received the applications via accredited dealers not knowing that the applications originated from YapYap,” Roux said.
“MFC will endeavour to assist our clients that purchased a vehicle through YapYap to ensure they have not been prejudiced.”
Approached for comment, Venter referred the query to his attorney, who responded:
“Our client’s nature of business is that of a car/truck and construction equipment rental company.
“Should a potential renter opt to purchase a movable asset, our client refers the client to various retailers that pay to our client a lead generation fee.”
He said Venter was under the impression that the clients in question came to him to rent cars. “Upon initial contact with the clients, the clients opted not to rent a motor vehicle but rather to purchase a vehicle.
“Our client does not require bank codes from the various banks, and for that reason we, with the clients’ permission, give their lead over to various other motor car dealers.
“The leads [in the referred cases] were given to Group 1 Nissan the Glen and Village Auto Melkbosstrand.
“From there, our client’s understanding was that the clients had access to a pre-quote, which our client is unaware if the clients exercised their right to see the pre-quote for the below mentioned deals.”
Venter denied misleading consumers, the attorney said.
“[He] is not the dealer that supplies the motor vehicles.
“He truly believes the below clients entered into the various contracts out of their own free will, considering they signed bank finance contracts and advice documentation.
“[They] knew exactly what their monthly repayments were.
“As our client’s main business is the rental of movable assets, our client has nothing to do with the finance of the movable assets.”
As for the insurance issue, the attorney said: “The consumers had an option to go on to our client’s corporate scheme or obtain their own insurance.
“Ironically, MFC, Standard Bank and WesBank accepted confirmation of cover on behalf of the clients that they financed at the various dealers, knowing well that the policy is a YapYap corporate policy.”
Standard Bank and WesBank told Sunday Times Daily they had not financed any YapYap deals.
Faisal Mkhize, managing executive of Absa’s Vehicle and Asset Finance, said the bank did not have a relationship with the company trading as YapYap Cars. “Absa did become aware of one application for finance through a dealer in the Western Cape in August.
“This transaction was immediately cancelled. We subsequently distributed a communication to caution dealers nationally.”
Through his attorney, Venter “suggested” that YapYap clients “take a look at their contracts “which were supposed to be supplied to them by the various banks/dealerships” to see whether the dealership/financier had sold them “unnecessary warranties and aftermarket products”.
“The clients can cancel and capitalise these unnecessary products against their finance agreement. This will have a significant reduction effect on their monthly repayments.”
