WesBank Locked Out of Toyota Dealership Car Finance
Busting the Monopoly
Car buyers at Toyota dealerships will soon have more finance options after WesBank was locked out for years.
WesBank, one of South Africa’s biggest vehicle financiers, was for years excluded from offering loans at Toyota, Lexus and Hino dealerships. This restriction came from a shareholder agreement that gave Toyota Financial Services SA a direct advantage.
A recent settlement, valued at R30 million, has now brought that arrangement to an end and reopened the door for WesBank to compete in this space.
What Was Going On (and why it was wrong)
The arrangement meant that when buyers visited a Toyota dealership, their finance applications would only go through Toyota Financial Services.
WesBank was kept out, even though it has long been a key player in car finance. This limited consumer choice making it harder for buyers to shop around for better interest rates or repayment terms.
The Competition Commission described this as a form of exclusionary conduct that hurt competition in the market.
More Choice For Buyers
With the Competition Tribunal approving the settlement, these restrictions will now be lifted.
WesBank will now be able to provide car finance directly through Toyota, Lexus and Hino dealerships once again.
For customers, this change could bring more competition, better deals, and greater transparency when applying for finance. It is also a reminder of how important open competition is in making sure South Africans get fair options when buying big-ticket items like vehicles.
