Gauteng Businessman Faces R1.6 Million Legal Battle Over Uncollected BMW
A Gauteng businessman is embroiled in a financial nightmare as BMW Financial Services has taken him to court. They are demanding R1.6 million for a luxury vehicle he never actually collected.
The Purchase and Planned Collection
The saga began in late 2019. Farhaad Mahomed, a 50-year-old entrepreneur from Lenasia, Johannesburg, purchased a brand-new BMW X3M Competition from SMG BMW Century City in Cape Town. Mahomed, seeking to expand his fleet, paid a hefty R200,000 deposit. BMW Financial Services financed the remaining amount of over R1 million.
The dealership required Mahomed to sign an undated finance contract while the car was still at the Durban port. He planned to collect the vehicle in January 2020. This was so it could be registered as a 2020 model, rather than December 2019, which he felt made little sense for a car he would have only driven briefly.
Concerns Over Vehicle Display
Complications arose when Mahomed noticed the car being advertised on social media and displayed in the dealership showroom. Concerned that potential clients might test-drive it, he requested the advertisements be removed. His requests were ignored, and he feared the car was no longer truly “new.”
Mahomed also discovered that the agreed-upon R12,000 carbon fibre trim was missing. This was a final straw that prompted him to cancel the deal. Despite his cancellation request, the car was registered in his name. Over R23,000 was debited from his personal Absa account, a move he described as fraudulent. Mahomed claims he had instructed that payments be debited from his business account, not his personal account.
Legal Battle and Dispute
Efforts to halt the debits and terminate the contract through multiple emails proved unsuccessful. BMW Financial Services subsequently issued a summons demanding over R1.6 million, including interest. They claimed Mahomed was contractually obligated to pay since the dealership had already been paid. Mahomed disputes this, insisting the delivery and debit agreement should have been finalized only upon collection of the vehicle.
“The Consumer Protection Act states that a finance agreement without proof of insurance is reckless lending. I never insured the vehicle because I never took possession of it,” Mahomed explained.
Personal and Professional Impact
The ordeal has taken a severe toll on Mahomed. He says he lost most of his business and was blacklisted due to this prolonged legal dispute. He also noted an ongoing criminal investigation regarding the unauthorised debits, with a salesman already charged for fraud.
BMW declined to comment on the matter, citing that it is sub judice. The court hearing is scheduled for September 2029.
Related article: BMW B58 Engine: Specs, Performance, and Key Features Explained
