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Drive South Africa Buy-Back Scam

Replies: 28 - Last Post: 25-Jan-2009 03:46 Last Post By: Stanyslava

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Posted
22-Dec-2008 23:17
by: Stanyslava

Posts:  9
Registered:  20/10/05

Drive South Africa Buy-Back Scam

Thinking about traveling around Africa in a car and getting it through a buy-back company to avoid the hassle of buying and selling it independently? Not only you may end up putting your life in danger driving what you only thought was a safe vehicle and get stuck with the bill on major repairs for a car you are giving back in a few month, the company may just disappear completely leaving you with an overpriced piece of junk and all the hassles of selling it. Even in a country like South Africa, dealing with a "respectable" company, and having a by-the-book signed contract, you can still end up being scammed out of thousands of dollars.

For our three months trip in Africa, after reading some recommendations on the internet forums, we chose to get a bakkie with buy-back contract from Drive South Africa. When we contacted them about a car, they informed us that a branch of theirs - Twende Overland Services was handling all of their buy-back deals. A buy-back deal, in a nutshell, gives you temporary ownership of a car with the right to drive it through specific countries. The way it works, is that you "buy" a car by paying an overinflated price (in our case $12,000) for a used car (we got a 1997 Toyota Hilux) and upon return of the car after three months you get 70% of your money back. When we signed the papers for our buy-back deal it turned out that on paper we are only leasing the car under these terms and in reality the car remains registered to the company. "That is just making it less complicated" an employee of the company assured us.

Things went wrong from the beginning. We were, of course, responsible for anything that breaks in the car after after a grace period of one week of "ownership" but even before the week was up we had to stop for repairs - the steering wheel freeplay, which was said to have been fixed after a week of sitting and waiting in Cape Town for the car, had almost killed us. We fixed it on our own dime with a promise from the company to get reimbursed when we return.

A busted gear box which needed to be replaced after leaving us stranded in the desert, and a faulty starter which failed one day in the middle of a pride of lions, followed together with a long list of other things. A few month into the trip we got the biggest shock in out automotive adventures - an especially bumpy dirt road left us with a broken leaf-spring. "Of course it broke!" said the mechanic we brought it to, "You have parts of the rear suspension missing!"

As much as we loved our trip, and tried to laugh off our car problems, we couldn't wait to give our disaster on wheels back. The morning before the day of the handover I phoned Twende and reminded of our arrival. "Sure!" they said, "it's right here in the appointment book. You are flying out right after, right? We can drop you off at the airport. Can't wait to see you guys!" The next day we gave the car a proper bath and drove it to where we'd picked it up exactly three month ago – a huge garage with many cars and trucks being ready to be "sold off" and offices full of enthusiastic employees.

Now, the lot, the garage, the offices were all empty and swept clean. The neighbors said the company had moved – no idea where. We phoned the owner, the employees, and the owner's wife. Before, our phone calls and emails had been answered within a minute. Now, it was like all our efforts to get in touch had disappeared into some black hole together with our $8,000 (the 70% of the initial payment that we were supposed to get back upon return of the car). We finally got in touch with Drive South Africa, and, miraculously, they were able to successfully get in touch with Twende on the same number I was trying all day myself. Nevertheless, Andre Van Kets - one of the directors of the company was able to give us a message: "For a very, very good reason" he said, the employees were "instructed not to communicate" with us.

We went to the police to open a criminal case, and then got in touch with some other Twende victims we met on the road, and found out they were even worse off - they've returned before before us and gave back their cars, and now found themselves back home without a chance of ever seeing a penny back. We had already changed our plans, and our schedule was more flexible so we stayed behind to investigate. After, a few weeks of keeping us in the dark the company sent us papers stating that Twende, the buy-back branch of Drive South Afica, has gone bankrupt and they will not be honoring any contracts. "You have the car now," they wrote, "You can put it in you name and do whatever you want with it."

Getting used to be outraged and confused by the company's actions we called, emailed, and visited Drive South Africa's offices asking what was going on, but all they said was sorry folks, stuff happens, you have the car now and you can sell it and get even more money back. Unlikely, given the current economic crisis and the fact the the car couldn't even pass a road worthiness test after we fixed everything we could fix in it. We protested, but that didn't seem to bother Drive South Africa, nor the fact that because of them we were now living in a tent in the back of a hostel in Cape Town because they so very obviously pocketed our money blaming it on some vapor company they'd created.



I and my husband have been traveling for a long time and this is not the first time we faced similar situations - scams, in this form or another. And what we have also seen is important massages like these being erased by website moderators because the offending company/touroperator have claimed the story is made up by competitors to ruin their good reputation. So if anybody has any doubts about my identity, they can just go to my website-blog HopStopTravel.com see I am who I say I am and get in touch with me through there if needed.

It would be grave injustice to travelers everywhere if a thing like this will go unnoticed.

-S

Posted
23-Dec-2008 00:28
by: bundubasher

Posts:  989
Registered:  13/03/02

1

Just received this email:

"...inquired about one of the 4x4 listed on your site half a year ago, but in the end went with SA buy-back company. What a mistake it was! In the the three months that we had the car, the company went bankrupt, and we are now stuck with the vehicle. Anyways, we'd like to at least use the situation to our advantage and extend our trip to include Tanzania, Kenya, Uganda, and Ethiopia. But eventually, we will still need to sell it. Can you suggest some ways to sell SA registered vehicle in East Africa?"

So you are not alone. Surely an SA lawyer might be able to advise a better course of action than accepting a non-roadworthy vehicle?

Bundubasher: Safari? So Goody!
Africa 4x4 Fundi
Africa 4x4 Cafe
Africa 4x4 Overland

Posted
23-Dec-2008 08:12
by: vdinets

Posts:  2
Registered:  06/02/08

2

Come on, don't be so naive. It's obvious that DriveSouthAfrica are a bunch of crooks. They were planning this fake bankruptcy from the beginning - that's why they split Twende into a separate company and never maintained their cars properly. I bet they are creating yet another ephemeral buyback company right now.

The problem with buyback is that you are completely unprotected from fraud. The contract you sign with them is always made in such a way that it's useless for you - only the first page has signatures, etc. If the company disappears or refuses to return your deposit, there's nothing you can do, especially if you are already out of the country. There's no way to evaluate the condition of the car until you drive it for a while, and you have to pay for all fixes.

It's much better to rent a car from a reputable international company. Buyback might be cheaper, but you'll have to spend a lot of money on repairs (and on medical care if you gat into an accident because of the poor condition of the car). Your deposit will be slowly evaporating due to falling rand. And, considering the current situation in South African economy, there's a good chance of the buyback company going bankrupt even if they don't do it on purpose.

Whatever you do, stay away from BuyBackAfrica - who knows what other schemes they might be running?

Posted
23-Dec-2008 09:53
by: bundubasher

Posts:  989
Registered:  13/03/02

3

Talk about being naive...did you ever find your "colorful tribal cultures"?

Bundubasher: Safari? So Goody!
Africa 4x4 Fundi
Africa 4x4 Cafe
Africa 4x4 Overland

Posted
23-Dec-2008 09:57
by: luangwablondes1

Posts:  554
Registered:  31/01/05

4

A few people contacted me with the same problem. They were unable to sell their vehicle to the 'buy back' company after they finished their safari. Your experience is not unique.

www.luangwablondes.com

Posted
23-Dec-2008 10:07
by: klaush

Posts:  4,387
Registered:  14/04/02

5

after reading some recommendations on the internet forums,

That's exactly what I would bet thousands of dollars on...

You need to understand that the ability to write a half-way coherent forum post recommending a business, is shared between honest people, naive people, and the scammers themselves... with no way of telling who the real person behind an internet identity is, how do you place such trust in the posts on a forum?

Tourists should move between the people like a fish moves through water (Mao Tse-tung)
Berlin 1989 · Medellin · Bogota · Bruges · Callao · Chankillo · Caral · Rome

Posted
23-Dec-2008 10:27
by: Stanyslava

Posts:  9
Registered:  20/10/05

6

I see you've been reading up on us. good :)
the Himbas were pretty colorful, but we concentrated mostly on wildlife as I'm sure you can see from the blog

-S

Posted
23-Dec-2008 10:31
by: klaush

Posts:  4,387
Registered:  14/04/02

7

What I forgot in my list: it could also be from a competitor who wants to badmouth that business.

But somehow the idea of a "buy back guarantee" for cars does not seem logical to me, especially if it involves long trips on bad roads. That whole business proposition seems rather sketchy and prone to so many problems that I don't see its advantages copmared to an honest used-car dealership where you simply buy it, use it and then have to find a buyer without any promises made to you beforehand...

Tourists should move between the people like a fish moves through water (Mao Tse-tung)
Berlin 1989 · Medellin · Bogota · Bruges · Callao · Chankillo · Caral · Rome

Posted
23-Dec-2008 20:22
by: bundubasher

Posts:  989
Registered:  13/03/02

8

DSA and Buy-Back companies have been going for a while and are sometimes useful to people on limited time scales. However, I do know at least one person who has been rather significantly "financialy burnt " by this type of company. Personally i have never recomended these schemes but sometimes a clients' window does not allow for the 1-2 weeks buying and 1-2 weeks plus plus selling periods. As you can see from my 4x4 cafe site, selling a vehicle is not always a quick, or easy, process esp. if you are holding out for anything close to the initial purchase price, but, as you say, self driving your own vehicle is preferably the way to go.

Bundubasher: Safari? So Goody!
Africa 4x4 Fundi
Africa 4x4 Cafe
Africa 4x4 Overland

Posted
24-Dec-2008 03:27
by: mad_paddler

Posts:  485
Registered:  24/02/02

9

It should be pointed out that Drive South African is in no way affiliated with Drive Africa, the orignal SA buy back company.

Africa, once visited creeps insidiously into the travelers blood and draws them back into its depths with an uncanny fascination....william hoffman

Posted
04-Jan-2009 00:36
by: andrevankets

Posts:  4
Registered:  08/08/08

10

In response to “Stanyslava” and “vdinets” remarks in this thread, it is important that everyone knows the facts of this very unfortunate incident.

I therefore conclude that:

1) Drive South Africa (DSA) and Twende Overland Service are two completely separate companies and neither of them have any interest in each other whatsoever.

2) DSA is an established company within the South Africa tourism industry and has been in operation since 2002.

3) DSA acted as an agent for Twende Overland Services and as a result received commission for leads sent by Drive South Africa.

4) DSA was only made aware of the liquidation of Twende after the effect, on the 31st October 2008 and was unable to implement any form of damage control prior to the liquidation of Twende.

5) DSA had no indication or any prior knowledge of the possible pending liquidation of Twende.

6) All agreements and contracts between Twende and Twende’s clients were between Twende and Twende clients only. It is therefore that DSA cannot be held responsible for the agreement between Twende and Twende’s clients.

7) DSA deeply regrets any inconvenience caused by the liquidation of Twende and has attempted, where possible, to assist those clients affected by the liquidation.

8) DSA maintains a high level of service commitment to its direct and associated clients. We therefore, as always, invite any client affected directly or indirectly by the liquidation of Twende to meet with us to discuss any grievances they may have due to this very unfortunate incident.

For Drive South Africa to be accused of orchestrating such a “scam” is both profound and ludicrous. There is absolutely no financial, or any other benefit to DSA whatsoever in the liquidation of Twende. It could not be further from the truth. In fact DSA, itself, has lost considerable amounts of money due to unpaid commissions, not to mention the mistrust of certain clients.

We deeply regret this most unfortunate incident and are saddened by the accusations posted in this forum.

Posted
04-Jan-2009 03:17
by: luangwablondes1

Posts:  554
Registered:  31/01/05

11

I am not an attorney, but that sounds like fraud to me. Advertising on this page "Buy Back Guaranteed Vehicle Purchase in South Africa" and "Buy a Car in South Africa - Hassle Free". Hmmm. "We only sell reliable vehicles with excellent buy back rates while offering exceptional customer service." So what is Stanyslava complaining about if you performed as you advertise.

Do you think you made a case with the legalise crap. All that confirms is you don't take responsibility for your actions, and will do whatever it takes to get out of your obligations. You were stupid enough to tie up with idiots who could not run a business, and yet your customers suffer and you do nothing to assist them. In fact, you wash your hands of it entirely. This is an integral part of the operation, the marketing of your business.

www.luangwablondes.com

Posted
04-Jan-2009 07:17
by: Stanyslava

Posts:  9
Registered:  20/10/05

12

We are back into negotiation with DSA and it looks like they will be helping us in this matter.

-S

Posted
04-Jan-2009 08:57
by: klaush

Posts:  4,387
Registered:  14/04/02

13

Does DSA act as a "reputable" front but hand over all its customers to unstable smaller companies?

The whole story seems fishy to me. It appears like a business network built on purpose to shield themselves from responsibility.

Tourists should move between the people like a fish moves through water (Mao Tse-tung)
Berlin 1989 · Medellin · Bogota · Bruges · Callao · Chankillo · Caral · Rome

Posted
04-Jan-2009 08:58
by: gwymp

Posts:  2
Registered:  04/01/09

14

I also got a car from twende via dsa, luckily I managed to sell mine on to a friend out there but I got no where near the ammount I was due back, I find it funny that suddenly dsa say they are nothing to do with twende, yet they were only to keen to recommend them to us, surely some of the blame is theirs?

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