A Gauteng businessman’s decision to invest in a high performance luxury vehicle has spiralled into a prolonged legal and financial crisis that has now stretched over five years. What began as a routine vehicle purchase in late 2019 has evolved into a bitter court battle with BMW Financial Services, leaving Farhaad Mahomed facing a claim exceeding R1.6 million for a vehicle he insists he never collected or accepted.
At the time, Mahomed was a successful entrepreneur looking to expand his business operations. Confident in his financial position, he agreed to purchase a brand new BMW X3M Competition from SMG BMW Century City in Cape Town. The vehicle, still at the Durban port, was financed through BMW Financial Services after Mahomed paid a R200,000 deposit and signed what he says was an undated finance agreement.
A Registration Decision That Changed Everything
Mahomed opted to delay collection of the vehicle until early January 2020 so it could be registered as a 2020 model. He arranged for delivery to a Johannesburg dealership, believing this was a reasonable and mutually agreed step. That delay, however, would later form the foundation of the dispute.
Explaining his reasoning, Mahomed said the difference in registration year mattered both financially and practically. He believed collecting the car in December would diminish its value almost immediately, a decision he now describes as the moment his troubles began.
“If I had fetched it immediately in December, it would have been registered as a 2019 model and I would have driven it for just 30 days, for me it didn’t make sense. So we agreed that I’ll be fetching the car on January 2, 2020,”
Showroom Display Raises Serious Concerns
While waiting for collection, Mahomed discovered the vehicle had been placed on display in the dealership showroom and advertised on social media. This discovery alarmed him, as he feared the vehicle could be accessed or test driven by prospective customers.
Despite requesting that the advertisements be removed, Mahomed says his concerns were dismissed. For him, the presence of the vehicle on the showroom floor undermined its status as a new, unused purchase.
“I was not happy because this means anyone who came to the dealership had access to the car and would have potentially test driven it if they were interested in it. This means the car was no longer new but a demo car and I was not going to accept it.”
Disputed Explanations And Missing Evidence
The dealership responded by explaining that space constraints had forced the vehicle into the showroom. The sales manager further noted that vehicles are typically driven multiple times during shipping and logistics processes, making it unlikely any buyer would be the first driver.
Mahomed remained unconvinced and requested CCTV footage to confirm the vehicle had not been driven locally. He claims the dealership could not provide this evidence, citing non functioning cameras.
“That’s when I knew they were playing me, they couldn’t even provide me with proof that the car remained stationery from the day they got delivery,”
Missing Extras And A Cancelled Agreement
The dispute intensified when Mahomed noticed the absence of a carbon fibre trim package valued at R12,000, which he had paid for. The dealership could not account for the missing feature, prompting him to terminate the deal entirely.
He formally requested cancellation of the transaction, believing the agreement was void. However, unknown to him at the time, the vehicle was later registered in his name, setting off a chain of financial consequences.
“They couldn’t explain why the carbon fibre trim was not there, and it should have been there because I paid for it. For me, that was it, the deal was off.”
Unauthorised Debits And Escalating Legal Action
Mahomed says his shock peaked when monthly instalments exceeding R23,000 were debited from his personal Absa account, despite the car never being delivered. He reversed multiple debits and transferred funds to his attorney’s trust account to demonstrate good faith.
BMW Financial Services later issued summons against him for more than R1.6 million, arguing that payment to the dealership had already been made and that Mahomed was contractually bound to honour the agreement.
“I was shocked when they debited my personal account and I didn’t even have the car.”
Personal And Professional Fallout
The ongoing dispute has taken a devastating toll on Mahomed’s life. He says his business collapsed, his credit profile was destroyed, and his reputation irreparably damaged during what he describes as the prime years of his life.
He has also revealed that a criminal investigation is underway into the unauthorised debits, with a former salesman reportedly charged in connection with the matter.
“I have lost the prime years of my life. BMW Financial Services’ failure to hold their dealership accountable has led to my unjust prosecution for a car I never owned.”
Key Figures At The Centre Of The Dispute
| Item | Amount Or Detail |
|---|---|
| Vehicle Model | BMW X3M Competition |
| Deposit Paid | R200,000 |
| Monthly Instalment | Over R23,000 |
| Claimed Amount By BMW Financial Services | Over R1.6 Million Including Interest |
| Missing Carbon Fibre Trim | R12,000 |
| Next Court Date | September 2029 |
Silence From BMW As Case Drags On
BMW declined to comment on the matter, stating that it is currently before the courts. Court records indicate that the case is only expected to be heard in September 2029, nearly a decade after the original transaction.
For Mahomed, the case represents more than a legal dispute, it is a cautionary tale about trust, accountability, and the severe consequences when consumer protections fail.
