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| Drivers involved in fender benders have a new loan scheme available, structured by panelbeaters for panelbeaters. |
Car insurance is not mandatory in South Africa, with the result that insurers estimate only about 2,5 million of SA’s 10 million passenger cars have even a basic third-party fire and theft policy.
This leaves many people scrambling for funds when they have to fix damage from a fender bender, while panelbeaters wait many months for payment.
To provide a solution to uninsured drivers, Ian Groat publisher of Automotive Refinisher and veteran bike restorer, used his 50 years’ experience in the body shop and paint business to launch Fender Bender Finance in association with Nedbank.
Groat said Fender Bender Finance aim to grant loans to uninsured drivers to get their vehicles restored to as good as new at a qualified body shop.
“The aim is to create an even playing field where a fair day’s work is done for a fair day’s pay. It is about restoring cars back to secure vehicles with critical equipment that works.
“This finance option helps clients who cannot afford a high excess or who have had a repudiated claim,” Groat explained.
How does it work?
The client gets a quote from the Fender Bender Finance partner and can apply for finance at the body shop.
They can choose a loan of between R2 000 and R300 000, as well as the repayment period — from six to 72 months. The Nedbank platform is user-friendly and the client will need a valid identity or passport number and three months’ payslips to start the process.
If the client’s loan application is approved, the amount is paid into Fender Bender Finance’s account within two days. Then 50% of the money is forwarded to the body shop to start the job.
When completed and once the client has signed off, there is a seven-day period during which any queries may be raised to give everyone involved peace of mind. The other 50% of the money is then settled with the body shop.
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| Ian Groat. |
Confidence in quality
Groat said Fender Bender Finance works with panelbeaters who are members of the Collision Repairers Association (CRA). They are currently only in Gauteng, KwaZulu-Natal and Cape Town but will eventually be available nationally to all CRA members.
Groat said this professional finance option creates cash flow for panelbeaters and unlike the insurance industry, pays for rates for work done.
“This is not a short term money-making scheme, but an idea I’ve shaped with body shop owners over more than year to solve a need in SA,” said Groat.
He said panelbeaters keen to enlist can find out more on fenderbenderfinance.co.za.
