Rising Vehicle Write-Offs Spark Call for Wider Industry Safeguards

The South African Motor Body Repairers’ Association (SAMBRA) has warned that the increasing number of vehicle write-offs is placing the automotive industry under growing strain.

Some vehicles are reportedly being written off at only 35 per cent of their value, a trend that SAMBRA believes may compromise consumer protection and overall system integrity.

Juan Hanekom, National Director of SAMBRA, which operates under the Retail Motor Industry Organisation (RMI), notes that the surge in write-offs is flooding the market with damaged vehicles. This development is placing pressure on current mechanisms that track and regulate the movement of such vehicles.

Hanekom explains that SAMBRA has long supported the creation of a transparent Vehicle Salvage Database (VSD), which would improve oversight of insurance-related write-offs and provide clearer visibility of these vehicles within the system. However, he believes that the scale of the current challenge means this measure on its own may no longer be adequate.

One limitation, he says, is that the VSD would only apply to insured vehicles. In a country with more than 13 million vehicles on the road and an average vehicle age of around 10.8 years, a significant portion of the national fleet falls outside any formal tracking process. This gap increases the likelihood that damaged vehicles might re-enter the market without proper disclosure.

According to Hanekom, some vehicles that are declared uneconomical to repair still find their way back into circulation. This raises concerns about safety, transparency and the reliability of vehicle histories. He warns that the lack of comprehensive regulation may inadvertently encourage practices that undermine consumer confidence.

While the VSD remains a key part of the solution, SAMBRA argues that South Africa should consider broader measures that work alongside it. Hanekom points out that several international markets have established structured systems to manage vehicles that have reached the end of their usable life. These systems typically include clear processes for deregistration, dismantling and material recovery, supported by documentation and oversight to ensure accountability.

Any South African framework, he adds, must be tailored to local conditions and developed collaboratively. Insurers, repairers, manufacturers and regulators would all need to work together to build a system that strengthens transparency and improves safety throughout the vehicle lifecycle.

Hanekom believes that by expanding on existing initiatives, the industry has an opportunity to enhance consumer protection and ultimately contribute to safer roads across the country.