The introduction of the Administrative Adjudication of Road Traffic Offences (AARTO) Act in South Africa could make it extremely difficult for motorists to sell their vehicles if they have any traffic fines that remain unsettled. The legislation has been designed in such a way that unresolved infringements will directly affect vehicle ownership transfers, meaning a person with unpaid fines may be unable to finalise the sale of their car. This effectively ties a driver’s financial obligations to their mobility, creating a system where fines can no longer be ignored or delayed without real consequences.
Key Takeaways
- Unpaid Fines Could Block Vehicle Sales: Under the new AARTO Act, motorists with outstanding traffic fines may be unable to sell their vehicles until all infringements are cleared, reshaping the second-hand car market.
- Demerit System Will Penalise Repeat Offenders: The national rollout from December 2025 to September 2026 introduces a demerit system where accumulating 15 points can lead to licence suspension, with repeated suspensions resulting in permanent cancellation.
- Businesses Face Added Compliance Pressures: Companies with large fleets must nominate responsible drivers for each infringement or risk carrying the fines and demerit points themselves, potentially complicating fleet sales and operations.
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Industry Concerns Raised by Vehicle Marketplace
Michael Pashut, the founder and chief executive officer of ChangeCars, a well-known online platform for new and second-hand vehicles in South Africa, has voiced strong concerns about the implications of the new law. He explained that once AARTO is fully enforced, fines will not simply exist as penalties for infractions, but will instead be linked to the registered owner in a manner that restricts the ability to transfer legal ownership of the vehicle. This could disrupt the flow of the second-hand vehicle market, which forms a large portion of South Africa’s auto sector, potentially lowering sales volumes and reducing liquidity for both dealerships and private sellers.
The Department of Transport has already published the official commencement schedule for the implementation of AARTO. According to the published timeline, the rollout will be phased in between December 2025 and September 2026. This structured approach indicates that government is pushing forward despite ongoing public debate about the system and its impact on motorists across the country. It is suggested that the phased rollout will be closely monitored, as any early failures in metropolitan areas could create serious backlogs and undermine confidence in the system nationwide.
Major Consequences for Buying and Selling Cars
Although much of the attention has been directed towards the new driving licence rules, Pashut emphasised that one of the most profound outcomes for ordinary South Africans will be how AARTO alters the process of buying and selling vehicles. Since traffic fines and demerit points will be linked to the official vehicle owner rather than only to the driver, any unresolved infringements will need to be cleared before a car can legally change hands.
This change could lengthen the administrative process for sales, add new costs for sellers, and force dealerships to conduct far more detailed compliance checks before finalising transactions.
The Impact on Vehicle Owners
This requirement means that private sellers will be forced to settle all outstanding fines before being allowed to transfer ownership documentation. Businesses that rely on fleet vehicles will also face more stringent requirements under the new rules. Companies will now be compelled to formally nominate the individual driver responsible for an infringement. If they fail to do so, the company itself will be held liable for both the fine and the demerit points associated with the offence. In practice, this could see businesses absorbing significant costs from careless drivers, straining budgets and leading to stricter internal driving policies.
These new requirements are likely to create significant challenges for businesses operating large vehicle fleets. If infringements are not properly allocated to individual drivers, companies could find themselves unable to sell vehicles that carry unresolved fines. This has the potential to complicate the process of fleet sales and could increase administrative burdens for the corporate sector.
Fleet operators, logistics firms, and car rental businesses may be the hardest hit, as unresolved fines across dozens or even hundreds of vehicles could lock up millions of rand in potential resale value.
Linking Infringements Directly to Ownership
By ensuring that fines and demerit points are directly connected to ownership, the AARTO system eliminates the possibility of simply transferring a problem to the next buyer. Unresolved infringements will stay with the vehicle owner, forcing accountability and potentially reshaping both driving behaviour and the second-hand car market. The government hopes this measure will close loopholes that allowed irresponsible drivers to evade accountability, effectively ending the culture of passing on hidden liabilities to unsuspecting new owners.
Wider Consequences for Motorists
For motorists with a history of ignoring fines, the consequences could be severe. The new system not only threatens the validity of driving licences through the accumulation of demerit points, but it may also make it extremely difficult to dispose of a vehicle if infringements are not cleared. The intention is to place increased pressure on drivers to settle penalties promptly and to encourage greater responsibility on the roads. Consumer rights groups have already raised concerns that this may disproportionately affect lower-income drivers who struggle to pay fines immediately, potentially trapping them in financial and legal difficulties.
The national rollout has been broken into distinct phases. The first stage is scheduled to begin on 1 December 2025 and will cover 69 metropolitan areas and municipalities. This will be followed by a second phase on 1 April 2026, which will expand the system to 144 additional municipalities. The final stage will see the national demerit system launched on 1 September 2026. Although AARTO has been in place in Johannesburg and Tshwane for several years, it has never before included the demerit system, and the nationwide extension has been long anticipated. If implemented as planned, it will represent one of the most significant overhauls of traffic enforcement in the country’s democratic history.
How the Demerit System Works
The central aim of the demerit system is to improve road safety by imposing real consequences on repeat offenders. Every driver begins with zero demerit points. Each traffic offence carries both a financial penalty and a number of points depending on the seriousness of the violation. When a driver accumulates 15 or more points, their licence is automatically suspended. Multiple suspensions can eventually lead to a permanent cancellation of the driving licence. This places reckless drivers at real risk of losing long-term access to the roads, which could also jeopardise their employment opportunities if they rely on driving for work.
Reducing Points and Electronic Fine Delivery
Demerit points do not remain indefinitely. If a driver avoids further violations, one point is deducted every three months. This provides an incentive for better behaviour on the roads. Another important change is the method of issuing fines. Instead of relying only on registered mail, fines will now also be delivered electronically through email and other digital channels, making it more difficult for motorists to claim they were unaware of an infringement. Authorities believe this modernisation will significantly improve fine collection rates, with fewer drivers able to exploit postal delays or lost letters as excuses.
International Examples of Demerit Systems
While some South Africans have resisted the system, Pashut noted that similar approaches have been adopted around the world with measurable success. Australia introduced its version in the 1960s, New Zealand in 1967, the United Kingdom in 1982, and France in 1992. A global study published in 2024 indicated that demerit systems have reduced negative traffic-related outcomes by approximately 21 percent, lowered road fatalities by 10 percent, and cut non-fatal injuries by 9 percent. If South Africa achieves even half of these reductions, it could save thousands of lives and billions of rand in accident-related costs over the next decade.
Delays and Remaining Obstacles
Although the government has now set a firm timeline, the national rollout has faced years of delays. Several previous launch dates were missed, and even now there remain hurdles that must be overcome before full implementation. The Road Traffic Infringement Agency announced in June that it had started the process of linking AARTO to the eNatis system and was in the process of training the country’s 25,000 traffic officers. The scale of this training effort is enormous, and experts caution that without full readiness across the country’s law enforcement network, the system risks being inconsistently applied.
Tribunal Still Required Before Implementation
One of the final steps before the rollout can be finalised is the creation of an AARTO Appeals Tribunal. This body is necessary to handle disputes and appeals related to the system. The Road Traffic Infringement Agency has stated that the appointment of tribunal members is at an advanced stage, but it is not yet clear whether this will be completed in time for the scheduled launch. The coming months will determine whether the government can meet its own deadlines for this major shift in South Africa’s traffic law enforcement. If the tribunal is not operational in time, motorists could face a scenario where penalties are imposed without a functioning mechanism for appeal, raising constitutional concerns.
Conclusion
The phased implementation of the AARTO Act represents one of the most significant overhauls of South Africa’s traffic enforcement system, combining financial penalties with restrictions on vehicle transfers to enforce accountability. By linking infringements directly to owners and introducing a national demerit system, the government aims to improve road safety, reduce fatalities, and close long-standing loopholes. However, the changes will also place new financial and administrative pressures on both private motorists and businesses, raising questions about whether the system can be rolled out smoothly and whether the supporting infrastructure, such as the appeals tribunal, will be ready in time.
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