Guarantees needed to finance Kuga
SOUTH Africa’s banks are grappling with how to deal with Ford’s burning Kuga issue.
One bank has confirmed it requires guarantees from the global car manufacturer when processing finance purchasing applications for the vehicle.
TimesLIVE has learnt of at least one WesBank client who was told that‚ before the finances for sale of his vehicle would be approved‚ he required a guarantee from Ford that a replacement part fitted to the car was safe‚ although the bank said this is not its official policy.
Ford said the Kugas destroyed in fires since December 2015 were because of a faulty coolant system. Last week‚ Ford issued a safety recall for 4 556 Kugas built between 2012 and 2014 to replace the system with a more robust one.
One person has died and at least 50 other Kugas were reported to have caught alight.
Renaldo Vilonel‚ who is selling his 1.6l Kuga because he is emigrating‚ said he bought his car six months ago.
Shocked at the price he was offered from the Somerset West Ford dealership‚ he decided to sell his car privately.
“It was only then that I learnt of [Reshall] Jimmy’s death and the other fires. I thought I would have problems trying to sell it‚ but I eventually found a buyer.”
Vilonel’s joy was short-lived. For the finance from WesBank to be approved‚ he would have to provide guarantees from Ford on the parts that needed to be replaced.
“The problem was that for the sale to be signed off‚ the bank needed a certificate from Ford guaranteeing the repairs and replacement parts and that the car’s electrical system must also be checked out and given the OK.”
He said when he asked why, he was told that it was because of the vehicle being a fire hazard.
Vilonel said when he approached Ford SA‚ they refused to help him.
WesBank’s spokesman Rudolph Mahoney said‚ with Vilonel’s case‚ it was a matter of the bank’s customer call centre staff looking after the buyer’s interests.
“This is not a showstopper and will not result in the deal not going through if it has been approved through normal credit check procedures.”
He said that when a person bought a car privately there was a lot of risk for both the buyer and the seller‚ including that there are no warranties against dud vehicles. “We have established a layer of checks and balances in the finance processes for such private sales ...”
Absa spokesman Lies Squire said‚ as part of the recall‚ Ford was to provide each customer with a letter confirming these vehicles had undergone the necessary repairs and a guarantee on the parts replaced.
“On receiving a request to finance a Ford Kuga‚ and the model fits within the range of recall‚ we will require a safety certificate ensuring that the safety recall has been remediated. This will be sufficient for Absa to enter into an agreement to finance ...”
Standard Bank spokesman Ross Linstrom said his bank did not require a guarantee.
“Ford has committed to fixing all the affected models. We finance all used cars within the existing policies and risk appetite. These also determine up to what amount we finance a car and over what term. Ford Kugas also fall within such policies and risk appetite.”
Nedbank spokesman Tobeka Lwana said the bank would prefer not to comment.