September 9, 2025 • 11 mins
Relebogile Mabotja speaks to Kriben Reddy the Founder and CEO of Kredo Mobility about the hidden risk lurking in South Africa’s used car market.
702 Afternoons with Relebogile Mabotja is broadcast live on Johannesburg based talk radio station 702 every weekday afternoon. Relebogile brings a lighter touch to some of the issues of the day as well as a mix of lifestyle topics and a peak into the worlds of entertainment and leisure.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Seven o two the Car feature.
Speaker 2 (00:03):
Come for the Car Feature on seven oh two afternoons
at eighteen minutes to three o'clock and for today's car feature. Oh,
this is always going to be a topic of conversation.
We talk about the hidden risk lurking in South Africa's
used car market. We know that as things evolve, as
technology gets smarter, the criminals are almost one step ahead
(00:28):
of how things evolve. A double one double A three
h seven oh two in the WhatsApp line oh seven two,
seven o two and seven oh two. Cribn already joins us,
founder and CEO of Credo Mobility. Welcome to the show.
Thank you for joining us.
Speaker 1 (00:42):
Good Afton, thanks for having me Cribin.
Speaker 2 (00:45):
Let us chat about the used car market, which you know,
for a long time, I've always understood this thought that
says there's no need to buy brand new because the
value decreases so quickly that some of the horror stories
we hear now about used casts. Sometimes you're like, I
just go brand new.
Speaker 1 (01:07):
Yeah, look your spot on. So I mean a brand
new vehicle. Obviously there's less risk in the transaction for
a consumer. You know that vehicle comes with a manufacturer warranty.
Often more often antic comes with a after it comes
with a manufacturer service plan or motiplan, et cetera. So
(01:28):
for a period of time, you know, there's very little risk.
You know, where the vehicle comes from, the condition of
the vehicle. Obviously it's brand new, so it is an
easier purchase. They do depreciate, you know, more in the
first year, and then after that there is a certain
depreciation on different vehicles, et cetera. But I think to
your point, the risk for a consumer is certainly higher
(01:48):
on the use car site. So if you look at
US vehicles, the first thing is that no two use
vehicles are the same. It's almost impossible, you know, to
get two used vehicles but in exactly the same condition,
exactly the same its we're driven exactly the same way.
And then sort of lies the risk is in the
history of that used vehicle. Look, they are definitely more
(02:10):
affordable and in South Africa we are a higher volume
used vehicle consumer. So whether the whether it's on a
finance level or use vehicles being bought, you know, from
a consumer to another consumer in the private space. But
we do certainly operate more in the used vehicle space.
Than used, and it's it's down to affordability that consumers
(02:32):
can afford. You know, US vehicles easier than a new vehicle,
but it comes with sort of an inherent risk in
that the history of the vehicle at times is unknown.
And then you know, it's the consumers issue with that.
They said with they purchase a vehicle that has had
issues through its life.
Speaker 2 (02:52):
Let's talk about some of the obvious risks before we
go into the hidden risks. We know that the obvious
risks are being sold something that does not match what
you're being told, including the provided documentation and all of
those things.
Speaker 1 (03:09):
Yeah, correct. So often you know, it could be a
cloned vehicle as an example that that's one example. It
could be a vehicle that's being sought for by a
finance company or an insurance company that actually shouldn't be
changing hands. Could be a vehicle that's been stolen and
now being pushed back into the market as a sort
of legitimate vehicle. So there's a number of different I'll say,
(03:34):
you know issues or risk issues happening in the market.
Fraud is definitely on the top of the list. And
what you find is that you know, through certain periods
in the economy. It picks up and you know, or
comes down a bit as some rules get put in place,
but it's an ongoing issue. It's something that it hasn't
you know, alleviated over time. It becomes more palent in
(03:57):
certain instances, but it's an ongoing issue, and you know,
those are the things that you can't see and have
to guard against. Look in saying that there's obviously legitimate,
reputable use card dealers that try the you know, everything
that they can and try their best to eliminate these issues,
and I think i'd say that, you know, often there's
actually almost sometimes two victims in the process that a
(04:19):
dealer equally can fall victim to a potential fraudster or
you know, someone that's trying to move a vehicle that's
been stolen, et cetera. Obviously, the due diligence and honest
is on that dealer to be able to do the checks,
but the level of sophistication as well is increasing, you know,
with wood fraudsters and scammers, et cetera. And then obviously,
(04:40):
if if the vehicle enters the market and then gets
resold to a consumer, you obviously then you know have
potentially two victims, a dealer and possibly the next sort
of owner of that vehicle.
Speaker 2 (04:53):
Oh and I'm glad that you you acknowledge that, because
it's easy to assume that the dealership or the seller
is the one that is guilty, but they also might
have been fooled in the process. But we're going to
take a break at Cribin. When we come back, I
want to chat really about this whole process of coding
(05:15):
and what this gray area around vehicle coding is and
all of those other hidden risks on the car feature.
The car feature twelve minutes in two three o'clock and
we continue with the car feature as we chat to
Criben ready, founder and CEO of Credo Mobility, and we're
(05:37):
discussing the hidden risk lurking in South Africa's used car market.
Please do get all of your questions in a double
one A three seven O two and the whatzup line
O seven two seven two one seven O two. Cribin,
please chat to me about vehicle coding and explain it
for the lay MANKA.
Speaker 1 (06:00):
That this is obviously an interesting uh A point. So
let's start from the from the beginning. If you buy
a brand new vehicle, the vehicle is a Code one
and you would be the first owner of that vehicle.
And you know what should find is that until that
vehicle changes hands, as long as there's a single owner,
it would remain as a Code one until it changes
(06:21):
hands again. So typically, if you finance a vehicle and
you buy from a dealership and it's brand you the
dealer themselves, do not take ownership of that vehicle because
it's still a brand new vehicle. You are the first owner.
The registered owner would be you, But if it's financed,
then the title would still set to the bank because
remember you still would have to pay off the bank
until you take full ownership of the vehicle. But that's
(06:43):
an important thing. It's also a big just to note
to your listeners. It's also a big area for risk
where people don't disclose necessarily or scammers try to hide
the fact that vehicles are still under finance and that
vehicle technique is not supposed to change hands until the
bank is settled. But obviously, if someone's looking to defraud
you know, an individual or a dealer, et cetera, they
(07:06):
make it seem as if the vehicle is paid up
and in turn get cash out for that vehicle. But obviously,
after a month, the bank doesn't get paid and they
start looking for the vehicle and you've got no recourse.
In that scenario, the vehicle will get you know, returned
back to the bank or impounded or whatever case is.
So that's a that's a Code one vehicle brand you.
(07:28):
The first time the car changes hands would be when
it starts not to be considered a used vehicle or
coded as a used vehicle, and that's that's typically then
code two, So code one brand new, Code too is
used vehicle, and code two effectively means, you know, it
doesn't mean that the vehicle has not been involved in
any accidents, et cetera. But the accidents are not or
(07:49):
the damage caused by any accidents, et cetera, does not
warrant the vehicle to change or the code to change,
So it's go too. Typically they just used vehicle, could
be financed or unfinanced, et cetera. But that's the coding
for a for a code two Quote three and the
and the sort of distinction between two and three is
where it starts to become a bit gray. So GO
(08:10):
three technically is a motor vehicle that's been previously declared
as built up or permanently unfit for use, et cetera,
and that has been repaired by someone registered through Natures
as a Code three and then put back onto the road.
So that's technically a go three and code four would
be if a total scrap and you know the car
is going to be either dismantled for spares or stripped up,
(08:34):
et cetera. But there's no possibility of that vehicle ever
entering the market again or being put back on the road.
So the real gray area is between you know what's three, Yeah,
between two and three, actually not even two and three.
Speaker 2 (08:51):
Okay, yeah, yeah, So so in that regards, right, if
you're saying it's a great area, is a gray because
the people that need to do that coding can decide
against the interests of what they should be doing or that.
For you as a buyer, you can check a code
(09:13):
and it could be inaccurate or both.
Speaker 1 (09:17):
Yeah. Look, I think to be quite fair to all parties,
it's a combination of things, right, So I think the
one is that what happens is that you've got to
make a distinction in terms of an insurance writer. So
typically an insurance is writing of based on value the
post repair a vehicle based on their calculation, their quotes,
(09:38):
their suppliers and their assessment of the damage versus what
the value of that vehicle is. And it's the difference
between the two. And if it exceeds a certain amount,
and some insurance might have a different threshold, et cetera.
If it exceeds a certain amount, then it's considered an
insurance writer and that vehicle gets sold to different parties.
It could get sold to a salvage yard, it could
(09:59):
get st a auction out, et cetera. That Dictoria will
try and recover and recook some of the money back
on that asset. And you know there's a whole value
chain that can go into the process in that This
is where some of the problems might lie because in
that process, if the vehicle was written out by Insura,
the techniquely should be coded as a code three and
(10:22):
everyone then in the value chain is clear. You know
that this car has been involved in a previous accident,
was not by n Insura.
Speaker 2 (10:29):
So can I make the suggestion Cribin, I think we
need to bring you back for a Lensia discussion because
this coding thing I don't think it's it's it's a
quick thing for us to discuss because I also want
us to find the solve. How do we help all
of us that are possibly on the market for a
used car to figure all of this out? And also,
(10:52):
as you said, not just easily point fingers at the
sellers and the dealership. So Crebin will definitely bring you
back for another round of the half feature to check
more in detail around all of this coding and those
hidden risks for buyers.
Seven o two the Car feature.
Speaker 2 (00:03):
Come for the Car Feature on seven oh two afternoons
at eighteen minutes to three o'clock and for today's car feature. Oh,
this is always going to be a topic of conversation.
We talk about the hidden risk lurking in South Africa's
used car market. We know that as things evolve, as
technology gets smarter, the criminals are almost one step ahead
(00:28):
of how things evolve. A double one double A three
h seven oh two in the WhatsApp line oh seven two,
seven o two and seven oh two. Cribn already joins us,
founder and CEO of Credo Mobility. Welcome to the show.
Thank you for joining us.
Speaker 1 (00:42):
Good Afton, thanks for having me Cribin.
Speaker 2 (00:45):
Let us chat about the used car market, which you know,
for a long time, I've always understood this thought that
says there's no need to buy brand new because the
value decreases so quickly that some of the horror stories
we hear now about used casts. Sometimes you're like, I
just go brand new.
Speaker 1 (01:07):
Yeah, look your spot on. So I mean a brand
new vehicle. Obviously there's less risk in the transaction for
a consumer. You know that vehicle comes with a manufacturer warranty.
Often more often antic comes with a after it comes
with a manufacturer service plan or motiplan, et cetera. So
(01:28):
for a period of time, you know, there's very little risk.
You know, where the vehicle comes from, the condition of
the vehicle. Obviously it's brand new, so it is an
easier purchase. They do depreciate, you know, more in the
first year, and then after that there is a certain
depreciation on different vehicles, et cetera. But I think to
your point, the risk for a consumer is certainly higher
(01:48):
on the use car site. So if you look at
US vehicles, the first thing is that no two use
vehicles are the same. It's almost impossible, you know, to
get two used vehicles but in exactly the same condition,
exactly the same its we're driven exactly the same way.
And then sort of lies the risk is in the
history of that used vehicle. Look, they are definitely more
(02:10):
affordable and in South Africa we are a higher volume
used vehicle consumer. So whether the whether it's on a
finance level or use vehicles being bought, you know, from
a consumer to another consumer in the private space. But
we do certainly operate more in the used vehicle space.
Than used, and it's it's down to affordability that consumers
(02:32):
can afford. You know, US vehicles easier than a new vehicle,
but it comes with sort of an inherent risk in
that the history of the vehicle at times is unknown.
And then you know, it's the consumers issue with that.
They said with they purchase a vehicle that has had
issues through its life.
Speaker 2 (02:52):
Let's talk about some of the obvious risks before we
go into the hidden risks. We know that the obvious
risks are being sold something that does not match what
you're being told, including the provided documentation and all of
those things.
Speaker 1 (03:09):
Yeah, correct. So often you know, it could be a
cloned vehicle as an example that that's one example. It
could be a vehicle that's being sought for by a
finance company or an insurance company that actually shouldn't be
changing hands. Could be a vehicle that's been stolen and
now being pushed back into the market as a sort
of legitimate vehicle. So there's a number of different I'll say,
(03:34):
you know issues or risk issues happening in the market.
Fraud is definitely on the top of the list. And
what you find is that you know, through certain periods
in the economy. It picks up and you know, or
comes down a bit as some rules get put in place,
but it's an ongoing issue. It's something that it hasn't
you know, alleviated over time. It becomes more palent in
(03:57):
certain instances, but it's an ongoing issue, and you know,
those are the things that you can't see and have
to guard against. Look in saying that there's obviously legitimate,
reputable use card dealers that try the you know, everything
that they can and try their best to eliminate these issues,
and I think i'd say that, you know, often there's
actually almost sometimes two victims in the process that a
(04:19):
dealer equally can fall victim to a potential fraudster or
you know, someone that's trying to move a vehicle that's
been stolen, et cetera. Obviously, the due diligence and honest
is on that dealer to be able to do the checks,
but the level of sophistication as well is increasing, you know,
with wood fraudsters and scammers, et cetera. And then obviously,
(04:40):
if if the vehicle enters the market and then gets
resold to a consumer, you obviously then you know have
potentially two victims, a dealer and possibly the next sort
of owner of that vehicle.
Speaker 2 (04:53):
Oh and I'm glad that you you acknowledge that, because
it's easy to assume that the dealership or the seller
is the one that is guilty, but they also might
have been fooled in the process. But we're going to
take a break at Cribin. When we come back, I
want to chat really about this whole process of coding
(05:15):
and what this gray area around vehicle coding is and
all of those other hidden risks on the car feature.
The car feature twelve minutes in two three o'clock and
we continue with the car feature as we chat to
Criben ready, founder and CEO of Credo Mobility, and we're
(05:37):
discussing the hidden risk lurking in South Africa's used car market.
Please do get all of your questions in a double
one A three seven O two and the whatzup line
O seven two seven two one seven O two. Cribin,
please chat to me about vehicle coding and explain it
for the lay MANKA.
Speaker 1 (06:00):
That this is obviously an interesting uh A point. So
let's start from the from the beginning. If you buy
a brand new vehicle, the vehicle is a Code one
and you would be the first owner of that vehicle.
And you know what should find is that until that
vehicle changes hands, as long as there's a single owner,
it would remain as a Code one until it changes
(06:21):
hands again. So typically, if you finance a vehicle and
you buy from a dealership and it's brand you the
dealer themselves, do not take ownership of that vehicle because
it's still a brand new vehicle. You are the first owner.
The registered owner would be you, But if it's financed,
then the title would still set to the bank because
remember you still would have to pay off the bank
until you take full ownership of the vehicle. But that's
(06:43):
an important thing. It's also a big just to note
to your listeners. It's also a big area for risk
where people don't disclose necessarily or scammers try to hide
the fact that vehicles are still under finance and that
vehicle technique is not supposed to change hands until the
bank is settled. But obviously, if someone's looking to defraud
you know, an individual or a dealer, et cetera, they
(07:06):
make it seem as if the vehicle is paid up
and in turn get cash out for that vehicle. But obviously,
after a month, the bank doesn't get paid and they
start looking for the vehicle and you've got no recourse.
In that scenario, the vehicle will get you know, returned
back to the bank or impounded or whatever case is.
So that's a that's a Code one vehicle brand you.
(07:28):
The first time the car changes hands would be when
it starts not to be considered a used vehicle or
coded as a used vehicle, and that's that's typically then
code two, So code one brand new, Code too is
used vehicle, and code two effectively means, you know, it
doesn't mean that the vehicle has not been involved in
any accidents, et cetera. But the accidents are not or
(07:49):
the damage caused by any accidents, et cetera, does not
warrant the vehicle to change or the code to change,
So it's go too. Typically they just used vehicle, could
be financed or unfinanced, et cetera. But that's the coding
for a for a code two Quote three and the
and the sort of distinction between two and three is
where it starts to become a bit gray. So GO
(08:10):
three technically is a motor vehicle that's been previously declared
as built up or permanently unfit for use, et cetera,
and that has been repaired by someone registered through Natures
as a Code three and then put back onto the road.
So that's technically a go three and code four would
be if a total scrap and you know the car
is going to be either dismantled for spares or stripped up,
(08:34):
et cetera. But there's no possibility of that vehicle ever
entering the market again or being put back on the road.
So the real gray area is between you know what's three, Yeah,
between two and three, actually not even two and three.
Speaker 2 (08:51):
Okay, yeah, yeah, So so in that regards, right, if
you're saying it's a great area, is a gray because
the people that need to do that coding can decide
against the interests of what they should be doing or that.
For you as a buyer, you can check a code
(09:13):
and it could be inaccurate or both.
Speaker 1 (09:17):
Yeah. Look, I think to be quite fair to all parties,
it's a combination of things, right, So I think the
one is that what happens is that you've got to
make a distinction in terms of an insurance writer. So
typically an insurance is writing of based on value the
post repair a vehicle based on their calculation, their quotes,
(09:38):
their suppliers and their assessment of the damage versus what
the value of that vehicle is. And it's the difference
between the two. And if it exceeds a certain amount,
and some insurance might have a different threshold, et cetera.
If it exceeds a certain amount, then it's considered an
insurance writer and that vehicle gets sold to different parties.
It could get sold to a salvage yard, it could
(09:59):
get st a auction out, et cetera. That Dictoria will
try and recover and recook some of the money back
on that asset. And you know there's a whole value
chain that can go into the process in that This
is where some of the problems might lie because in
that process, if the vehicle was written out by Insura,
the techniquely should be coded as a code three and
(10:22):
everyone then in the value chain is clear. You know
that this car has been involved in a previous accident,
was not by n Insura.
Speaker 2 (10:29):
So can I make the suggestion Cribin, I think we
need to bring you back for a Lensia discussion because
this coding thing I don't think it's it's it's a
quick thing for us to discuss because I also want
us to find the solve. How do we help all
of us that are possibly on the market for a
used car to figure all of this out? And also,
(10:52):
as you said, not just easily point fingers at the
sellers and the dealership. So Crebin will definitely bring you
back for another round of the half feature to check
more in detail around all of this coding and those
hidden risks for buyers.
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