Gauteng Businessman Sued for R1.6 Million Over Undelivered BMW

A Gauteng businessman faces a financial crisis as BMW Financial Services has taken him to court, demanding R1.6 million for a luxury vehicle he never collected.

The dispute began in late 2019 when Farhaad Mahomed, enjoying success in his business, invested in a new BMW X3M Competition to add to his fleet.

The 50-year-old from Lenasia, Johannesburg, purchased the vehicle in November 2019 from SMG BMW Century City in Cape Town.

Mahomed stated the dealership required him to sign an undated finance contract, despite the vehicle still being at the port of Durban.

He paid a R200,000 deposit, and BMW Financial Services financed the remaining amount exceeding R1 million.

Mahomed arranged for delivery to his local BMW dealership, intending to collect it in January 2020 to register it as a 2020 model. This decision led to a legal battle.

“if I had collected it promptly in December,it would have been registered as a 2019 model,and I would have driven it for only 30 days. That didn’t make sense. So, we agreed I’d collect the car on January 2, 2020,” he explained.

While awaiting collection, Mahomed discovered the car advertised on social media after being displayed in the dealership’s showroom. He requested the advertisement’s removal, fearing prospective buyers might test drive it, but his request was ignored.

“I was unhappy because it meant anyone visiting the dealership had access to the car and could possibly test drive it. This meant the car was no longer new but a demo car, which I wouldn’t accept,” he saeid.

Mahomed provided an email to IOL detailing his concerns about the showroom display. The sales manager responded that the showroom was used due to a full basement parking area.

The manager also stated it was unlikely Mahomed would be the vehicle’s first driver, as new vehicles are typically driven during transport.

“When the car is loaded onto a carrier at the plant, it is physically driven by a person. The same happens when the car is loaded onto a cargo vessel for shipping to South Africa. Once the vessel arrives in our harbor, another person drives the car off the vessel to be loaded onto a carrier for transport to Midrand,” the reply read.

Unsatisfied, Mahomed requested footage proving the car hadn’t been driven at the dealership, but was told showroom cameras were either not working or nonexistent.

“That’s when I knew they were deceiving me; they couldn’t even provide proof the car remained stationary from the day of delivery,” he said.

The final issue arose when Mahomed noticed the vehicle’s mileage had increased, indicating it had been driven despite his not having taken possession.