How to Earn Referral Income from Non-Running Car Sales in South Africa

Overview: What 'non-running car sale referral earnings' means

If you come across a non-running, accident-damaged or written-off vehicle and you can connect the owner with a buyer - such as a specialised car-buying service - you may be able to earn a referral fee. This guide explains how referral arrangements commonly work in South Africa, how referral fees are calculated (typical ranges and examples in R), and practical steps to set up safe, transparent referrals for private owners and small business fleets in Johannesburg, Cape Town, Durban and beyond.

How referral programs usually work

• Identify a seller with a non-running vehicle and obtain permission to refer their car.
• Submit the vehicle details (photos, VIN, condition, location) to the buyer via an agreed referral method.
• If the buyer purchases the vehicle and the sale completes, the referrer receives a fee - either a fixed amount or a percentage of the sale.

Referral agreements can be informal or formalised in writing. For repeat referrals or fleet introductions, a written agreement or documented terms reduces disputes and clarifies payment timing, invoicing and tax responsibilities.

Who can benefit

• Private individuals who find a non-running car for sale.
• Mechanics, tow operators and bodyshops who frequently encounter written-off vehicles.
• Small business fleet managers replacing damaged vehicles.

Referral fee structures - examples and estimates (South Africa)

Referral fees vary. Two common models are fixed-fee and percentage-fee arrangements. Below are illustrative examples (estimates only):

Which model is fair depends on vehicle value, effort required to introduce the seller, and whether you assist with logistics (photos, meetings, towing arrangements). For higher-value or complex referrals, a percentage model can better reflect the work involved.

Who pays and when

• Most commonly the buyer pays the referrer after the sale is final and payment has cleared.
• Some arrangements allow the seller to pay a finder's fee, but this must be agreed upfront.
• Agree payment timing (e.g., within 7 working days of vehicle collection) and method (EFT, instant bank transfer).

For peace of mind, capture the agreement in writing: vehicle details, agreed fee, payment conditions, and evidence of owner consent.

Internal resources and next steps

If you're introducing a non-running vehicle to a specialist buyer, it helps to link the owner to a trusted service page such as Sell Non-Running Car or general information at Sell Damaged Cars. Also review guidance on avoiding fraud: How to Avoid Being Scammed (link to site resources).

When to refer vs encourage repair or private sale

Refer when repair costs, logistics or title issues make private sale impractical. Encourage repair or private sale when the vehicle is cosmetically minor-damaged, has clear records and the owner expects a higher private-market price. Below is a simple comparison to help decide.

Damage types vs typical offer impact

Practical steps to maximise referral earnings

• Gather clear photos (multiple angles), accurate mileage and honest damage descriptions.
• Confirm ownership and whether the vehicle is under finance - vehicles under finance require lender consent and may change settlement amounts.
• Negotiate fee terms before submitting a referral and capture them in writing (message, email or form).
• Offer to assist with logistics (arranging photos, meeting buyer), but state whether you'll charge additional handling fees.
• Request proof of payment timing and method as part of the agreement - e.g., payment within 7 working days of collection.

Example scenario (illustrative): You refer a non-running VW Polo in Durban. The buyer pays R12,000 for the vehicle. If your agreed referral is 5%, you would earn R600 (estimate). If you negotiated a fixed R800 fee, you receive R800. Always document the agreed amount and timing.

Legal, tax and compliance notes for South Africa

• Income from referral fees is taxable. Keep records and issue invoices if needed (SARS requirements may apply for regular earnings).
• When a vehicle is deregistered or ownership transfers, ensure paperwork is handled correctly; specialised buyers often manage deregistration for sellers.
• For vehicles under finance, confirm lender settlement and obtain written confirmation to avoid disputes.

Protecting yourself from scams

Use reputable buyers, verify bank transfers, and avoid incomplete verbal promises. Confirm identity and keep written records of the referral agreement and payment confirmation. For guidance, review site resources like How to Avoid Being Scammed.

Sources

• South African Revenue Service (SARS) - tax guidance for individuals and small businesses
• Road safety and written-off vehicle information - Arrive Alive
• National Traffic Information System (NaTIS) - vehicle registration and transfer processes in South Africa