TERMS & CONDITIONS
Sale of New and Used vehicles to Eligible persons
Updated: April 2020
Number: 17-06-408
ISSUED BY
PURPOSE
7.1 Eligibility – Used Vehicles
| Eligible Persons | Number of Used Vehicle Purchases | Frequency | Discount | |
| a) | All salaried and hourly employees who have completed 6 months’ continuous service with the Company | 1 | Calendar Year | Used Vehicle Price List Price less 10% |
| b) | In addition all salaried and hourly employees who have completed 6 months’ continuous service with the Company | 4 | Calendar Year | Used Vehicle Price List Price less 0% |
| c) | Pensioners/retired employees (Employees who left the service of the company from the age of 55 and above) | 1 | Calendar Year | Used Vehicle Price List Price less 10% |
| d) | Surviving spouse of deceased employee, | 1 | Calendar Year | Used Vehicle Price List Price less 10% |
| e) | Employees who are due for early retirement (from the age of 55 and above) or normal retirement may purchase within 3 months after retirement from the Company, irrespective of whether or not one used vehicle was purchased from the Company during the calendar year during which retirement takes effect. | 1 | Calendar Year | Used Vehicle Price List Price less 20% |
| f) | Employees who have been Retrenched or Separated from the Company must refer to the approved purchase plan in terms of the relevant Retrenchment/ Separation Program at the time | Retrenched employees will be treated in line with the approved Retrenchment / Separation Program. | ||
7.2 Conditions of Sale for Used Vehicles
a.) No new model vehicles will be sold as used vehicles within 90 days of new model introduction.
b.) Lessees or Assignees have first option to purchase their own lease/ assignees vehicle at the end of the term.
c.) When more than one employee applies for the same used vehicle, it will be allocated to an employee on the basis of length of service and the period of time elapsed since a used vehicle was last purchased.
d.) An employee will be able to buy Vehicles that were part of a “Fleet” i.e. Sales and Marketing, Courtesy, Test or Technical Training, Fleet, Commercial, Expense, Pool, BTP or SS (Shop Stewart) at normal “used Vehicle Price List Price – all rules apply. If the vehicle has not been sold on Remarketing Auction it will be placed on a stock list and be made available for purchase.
e.) When a vehicle is reserved for purchase by an employee, the vehicle must be paid for within 10 working days from request of staff purchase (No exceptions will be allowed)
f.) Surviving spouse of a deceased employee or pensioner/retired employee may only purchase a used vehicle for their own use, immediate family, extended family and/or friends.
g.) Employees are allowed to register Used Vehicles “sold” directly into the names of “friends” or family members.
h.) Subject to availability, eligible persons may purchase completely built up imported (CBU) and locally built vehicles of any make, model or option offered. However, the Company may from time to time announce restrictions to model availability in respect of used vehicle sales to employees, pensioners, etc
i.) Vehicles will be sold as is, although vehicles will be covered in terms of any unexpired portion of Warranty provisions.
j.) Exceptions to the above conditions will be considered by the HR Director, Human Resources, if the employee can prove that there are other special extenuating circumstances why he/she should be allowed to purchase the vehicle
k.) Employees are not allowed to sell vehicles to dealerships or registered established trades.
7.3 Eligibility – New Vehicles
| Eligible Persons | Number of New Vehicles Purchases | Frequency | Discount | |
| a) | All salaried and hourly employees who have completed 6 months’ continuous service with the Company | 2 | Calendar Year | Dealer billing less 5% |
| b) | Pensioners/retired employees (Employees who left the service of the company from the age of 55 and above) | 2 | Calendar Year | Dealer billing less 5% |
| c) | Surviving spouse of deceased employee, providing. | 1 | Calendar Year | Dealer billing less 5% |
| d) | Employees who are due for early retirement (from the age of 55 and above) or normal retirement may purchase within 3 months after retirement from the Company,irrespective of whether or not a new vehicle was purchased from the Company during the calendar year during which retirement takes effect. | 2 | Calendar Year | Dealer billing less 5% |
| e) | A contracted employee is a person with whom the Company has entered into a contract in his / her personal capacity for a period of 6 months and more and is on the Company's payroll. | 1 | Calendar Year | Dealer billing less 5% |
| f) | Employees who have been Retrenched or Separated from the Company must refer to the approved purchase plan in terms of the relevant Retrenchment/ Separation Program at the time | Retrenched employees will be treated in line with the approved Retrenchment / Separation Program. | ||
7.4 Conditions of Sale for New Vehicles
a.) Subject to availability, eligible persons may purchase any vehicles, model or option offered. However, the Company may from time to time announce restrictions to model availability in respect of new vehicle sales to employees, pensioners, etc.
b.) New vehicles will be sold as standard production units only. All other after-market accessories must be arranged by the purchaser after delivery. Licensing, registration and pre-delivery inspection charges are for the purchaser’s account.
c.) Subject to availability, eligible contracted employees on the company payroll may purchase locally built and imported vehicles (CBU) of any model or option offered. However, the Company may from time to time announce restrictions to model availability in respect of new vehicle sales to eligible contracted employees.
7.5 Conditions of Sale for New Vehicles
a.) The pricing of used vehicles will be determined by the Finance Office in conjunction with Sales and Marketing and will be adjusted from time to time, depending on market conditions. The determined dealer billing price of a particular model will be the amount payable by a FMC dealer.
b.) Vehicles purchased by Eligible Persons as per the definitions must be registered in their name.
c.) Purchasing finance may be obtained from Ford Credit Finance or paid for in cash.
d.) Mandatory charge of R1000 excluding vat will be charged for re-registering the car into the person’s name and de-registering the vehicle of FMCSA name
8 Method of Application & Processing of Sale Transactions
https://com.spt.ford.com/sites/SA-Intranet/Vehicle%20Information/Forms/AllItems.aspx
9. RELEVANT REFERENCES / DOCUMENTS
10. RECORDS GENERATED
11. AUDITING FREQUENCY
12. RECORD OF REVISION
| DATE: | ISSUE NO : | REASON: | ISSUED BY: |
| June 1, 1999 | Issue 1 | Initial Issue | Personnel Services |
| July 1, 2000 | Issue 2 | Update and review | Personnel Services |
| Oct. 1, 2001 | Issue 3 | Review & update format | Personnel Services |
| June 1, 2003 | Issue 4 | Review and update format | Personnel Services |
| Aug 30, 2004 | Issue 5 | Review and Revised Application form | S. Renze |
| Jun 30, 2005 | Issue 6 | Reviewed and update | Shaun Renze |
| July 26, 2005 | Issue 7 | ISO/TS clause and ref to Powerway | Shaun Renze |
| Oct 16, 2006 | Issue 8 | Annual Review – changes issued to be included asap by Remarketing | Shaun Renze |
| 10th Feb 2007 | Issue 9 | Updated procedure format | Personnel Services |
| 2nd Mar 2007 | Issue 10 | Updated procedure format indicate current policy. | Shaun Renze |
| 30th Aug 2007 | Issue 11 | Review only – no changes made. | Shaun Renze |
| 30th Aug 2008 | Issue 12 | Review only – no changes made. | Shaun Renze |
| April 1, 2012 | Issue 13 | Used and New Vehicle Purchase Policy Combined | Janice Govender |
| May 13, 2013 | Issue 14 | Review and update – On points 7.1 & 7.2 changed the phrase “discount price” to “discount” | Pamela Xaba |
| Sept 22, 2014 | Issue 15 | Review and update | Pamela Xaba & Rudie Van der Wielen |
| Nov 05, 2014 | Issue 16 | Updated 7.1.1 d) and g) | Pamela Xaba & Rudie Van der Wielen |
| Nov 16, 2015 | Issue 17 | Review and reformatted | Pamela Xaba & Rudie Van der Wielen |
| October 2018 | Issue 18 | Review and update | Pamela Xaba & Rudie Van der Wielen |
| April 2020 | Issue 19 | Review and update | Louis Koen & Paul Mbuyane |
Trade Adjustements
| Kilometre adjustments | % Disc | Range | % Disc |
| 0 - 20,000kms | 2% | 2% | |
| 20,001 - 30,000kms | 0% | 20 001 | 0% |
| 30,001 - 35,000kms | -2% | 30 001 | -2% |
| 35,001 - 40,000kms | -4% | 35 001 | -4% |
| 40,001 - 45,000kms | -6% | 40 001 | -6% |
| 45,001 - 50,000kms | -8% | 45 001 | -8% |
| 50,001 - 55,000kms | -10% | 50 001 | -10% |
| 55,001 - 60,000kms | -12% | 55 001 | -12% |
| 60,001 - 65,000kms | -14% | 60 001 | -14% |
| 65,001 - 70,000kms | -16% | 65 001 | -16% |
| 70,001 - 75,000kms | -18% | 70 001 | -18% |
| 75,001 - 80,000kms | -20% | 75 001 | -20% |
| 80,001 - 85,000kms | -22% | 80 001 | -22% |
| 85,001 - 90,000kms | -24% | 85 001 | -24% |
| 90,001 - 95,000kms | -26% | 90 001 | -26% |
| 95,001 - 100,000kms | -28% | 95 001 | -28% |
| >100,000kms | 0% | 100 001 | 0% |