What is a Code 3 vehicle in South Africa? Key facts and meaning
Specific coding is associated with vehicles, with various codes determining how new the car is, details on its licencing, and other relevant information that may determine if the car is the right choice for you. What is a Code 3 vehicle in South Africa? This article highlights all the necessary information regarding Code 3 cars, what other car coding there is in South Africa, and other relevant information.
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Each code given to a vehicle reflects its roadworthiness, providing a quick way to assess its condition and insurability after an accident or theft. The code helps buyers and sellers better understand what they are dealing with, from how damaged the car may be to whether it is legal to drive it.
Code 3 cars are commonly available throughout South Africa for buyers and sellers. However, their lack of roadworthiness makes them of limited use, depending on what you are seeking the vehicle for. What is a Code 3 vehicle in SA?
What is a Code 3 vehicle in South Africa?
Before we discuss the details of Code 3 cars, what is Code 3? According to the International Vehicle Identification Desk (IVID), a Code 3 vehicle was once reported as unfit for road use or scrapped.
The owner must declare the car unfit for use and notify the authority of the decision. The car's title holder must deregister it three days after the owner chooses to scrap the vehicle.
What is a Code 2 or 3 car?
The same IVID article highlights that there are four code gradings for vehicles. A Code 1 vehicle is considered new, and the car's source is a known manufacturer. The car's current owner is the first person liable for licencing it. The vehicle has not been reported unfit for use, stolen, or deregistered by default due to not being licenced. The car was also never exempt from registration.
A Code 2 vehicle has a known manufacturing source, and the current owner is either the second or later owner once the vehicle becomes liable for licencing. The vehicle may also be stolen or deregistered by default due to failure to licence and was at any stage exempt from registration. It must also not have previously been reported unfit for use or scrapped.
A Code 4 vehicle is a scrapped vehicle that will not be considered roadworthy again and cannot be registered again. The owner must notify the authority that the car has been demolished.
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What is a Code 3 rebuild?
As mentioned, a Code 3 vehicle is a car that was once written off due to accident damage and was built up again to be roadworthy. By definition, all Code 3 vehicles that are now roadworthy are considered rebuilds.
Code 3 vehicle requirements
There is no specific checklist to deem a vehicle a Code 3, apart from being previously classed as a written-off car. The vehicle would have had significant damage and been rebuilt, and if it is not salvageable, it should be sold with a salvage title and exclusively used for parts or as scrap metal.
How to check if a car is Code 3
The South African Insurance Association launched a VIN-Lookup website in 2023, which enables vehicle owners to obtain a short description of the vehicle. Car Mag reports that the website sources information from the industry's Vehicle Salvage Database to show what code the car is, along with other essential details.
Can you insure a Code 3 vehicle?
Individuals who own a Code 3 vehicle are not guaranteed insurance. FAnews reports that since it was a previously written-off car, some insurers may not insure a Code 3 vehicle. Insurers that may provide coverage could do so for 30% less than the current value of the car that is not registered as a Code 3 due to the damage.
Those in the retail motor industry are likely to own one of these cars for various reasons, including keeping the rebuilt vehicle for any spare parts. Apart from car insurance, those in the motor industry can benefit from special perks, such as the MIBCO Provident Fund, a specific fund for employees in the automotive industry.
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Code 3 vehicle price
Finding a Code 3 vehicle for sale may be challenging, as sellers may make little money off the purchase. However, you can find a Code 3 vehicle on various retail platforms, including Gumtree South Africa, JunkMail, and Salvage4sa.
Prices vary depending on the vehicle model, current visual appeal, and perceived risk due to the extent of the previous damages. Despite this, you can purchase a Code 3 vehicle for significantly less than a new or second-hand vehicle of the same make and model.
Disadvantages of buying a Code 3 car
Although the significant benefit of buying a Code 3 vehicle comes with apparent downfalls. Here are some potential pitfalls to expect when investing in a Code 3 vehicle:
- A previously written-off car may pose an increased safety risk.
- Code 3 vehicles are considered challenging to insure and offer less coverage than a new model.
- A Code 3 vehicle has a significantly low resale value.
Answering the question 'What is a Code 3 vehicle in South Africa?' posed by South African drivers, a Code 3 vehicle has been previously written off or stolen and reregistered and rebuilt. You can find one on various e-commerce sites or car dealerships at significantly reduced prices, which is ideal for those looking to invest in a vehicle but are on a tight budget.
DISCLAIMER: This article is not sponsored by any third party. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions. Any action you take based on the information presented in this article is strictly at your own risk and responsibility!
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