New South African Law Could Block Car Sales for Owners with Outstanding Fines
A new law set to be fully implemented in South Africa could prevent motorists from selling their vehicles if they have unresolved traffic fines.
According to Michael Pashut, founder and CEO of ChangeCars, an online platform for buying and selling vehicles, the Administrative Adjudication of Road Traffic Offences (AARTO) Act links unpaid fines directly to the vehicle owner, potentially stopping them from transferring ownership until all infringements are cleared.
“The AARTO system doesn’t just penalise the driver it connects fines and demerit points to the owner,” Pashut explained. “If you attempt to sell a car with outstanding violations, the sale could be blocked.”
The Department of Transport has confirmed that the AARTO rollout will take place in phases, starting on 1 December 2025 in 69 metropolitan areas and municipalities, followed by 144 additional municipalities on 1 April 2026, with the national driving demerit system launching on 1 September 2026.
Impact on Vehicle Sales and Companies
Pashut highlighted that the implications for car owners and businesses could be substantial. Companies must officially designate the driver responsible for any traffic offence, or the organisation itself will be held accountable for fines and demerit points. This could complicate sales for fleet vehicles if fines remain unpaid.
By tying fines and demerit points to vehicle ownership, the system ensures that unresolved violations cannot simply be ignored or passed on to new buyers. “AARTO could significantly affect unsafe drivers from risking their licences to making vehicle sales more difficult,” Pashut said.
How the Demerit System Works
The demerit system is designed to promote safer driving. Drivers start with zero points, accumulating demerit points and fines based on the severity of violations. Accumulating 15 points or more results in a licence suspension, while repeated suspensions could lead to permanent cancellation. Points are reduced by one every three months if no further violations occur, and fines will be delivered electronically, not only by registered mail.
Global Examples and Expected Benefits
While some South Africans have criticised the system, similar schemes have been successfully implemented overseas. Australia began in the 1960s, New Zealand in 1967, the UK in 1982, and France in 1992. Studies indicate that such systems can reduce traffic-related incidents by around 21%, fatalities by 10%, and non-fatal injuries by 9%.
The national rollout of AARTO has faced multiple delays. The Road Traffic Infringement Agency (RTIA) is currently linking the system to eNatis and training 25,000 traffic officers. An AARTO Appeals Tribunal must also be established, with member appointments reportedly in advanced stages. Whether these processes will be completed in time for the December 2025 launch remains uncertain.
Pashut stressed that responsible driving remains the best way to avoid the negative consequences of the new system. Staying informed about fines and the demerit point system will be crucial for both private motorists and businesses alike.
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