It is that contract that governs what the car owner gets paid for driving around with an impossible-to-miss advert on their back window.
In fact, there are two contracts: Earn While You Own, in terms of which the owner gets a flat R a month, and if a car gets sold on the basis of their back-window advert, they get paid R With the second contract, Earn While You Drive, owners get paid an amount based on the mileage they do in a particular month. The more kilometres they do — km being the lowest permissible monthly mileage — the more they get paid. Last month Satinsky sent all clients an SMS offering to arrange for their payment term to be extended to lower their monthly car repayments.
In her weekly Consumerwatch column , Wendy Knowler stated:.
So logic dictates that although they are made to sign a contract with a financing bank, making them solely responsible for the full instalment, they would battle to afford it every month without the Blue Lakes income. And none of the banks answered my question on whether they had noted a trend in recent months of Satinsky clients defaulting on payments. This application to be heard on Tuesday will revolve around whether those affected by this car deal can pursue a class action suit against the respondents.
New Cars from R699 per Month
This means clients are now on their own with their monthly repayment to their bank. The advertisement by Satinsky discloses the monthly instalment of R only. Venter is the chief executive and mastermind of the car ownership model. But things have gone downhill for Satinsky, the banks as well as the people who signed up. Post by Jacaranda Share this:. Show's Stories. In the bathroom If they drive more than km in a month, they get percent of the repayment for that month.
End of the road for ‘drive a new car for R a month’ deal - Services News
Both options require owners to submit photos of their vehicles, taken at specific angles and at specific times of the month. There are third party advertisers, who are said to pay the advertising fee, but most of the cars seem to advertise only the scheme. While the monthly repayment that goes to the financing bank is fixed — subject to interest rate fluctuations, of course — the amount they can expect from Blue Lakes, via Satinsky, is not.
Because of this, many opted for the second option, as they have more control over their monthly mileage than whether or not someone will respond to the advert on their car. And there are other risks. Clause 4.
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While some claim to be doing well out of their contracts, they are vastly outnumbered by those who have reported to be bitterly disappointed, and suffering terribly financially. From March or April — and even earlier in some cases, they suddenly got paid R, instead of an amount double or triple that, depending on their mileage for the month. Payment will be effected by any means deemed fit by the company. Many of them had received calls from Blue Lakes before the sudden drop in their fees, trying to convince them to switch to the Earn While You Own option, but they had declined.
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I was supposed to receive about R1 Like the others, she cannot get anything apart from that standard e-mail response as an official explanation. What was supposed to be an enjoyable event is a total nightmare. A help desk run by Satinsky. As for recourse, well, cancelling the contract will leave them paying the full instalment on their cars.
And complaining to the Advertising Standards Authority about misleading advertising could have the same effect, thanks to the wording of the contract, under Suspension of Payment.