How a Gauteng Man Ended Up Owing R1.6 Million for a BMW He Never Took Home

A Luxury Car, a Legal Nightmare, and a Five-Year Fight

Imagine paying for a brand new BMW, never driving it, and still being billed over R1.6 million years later. That’s the reality for Farhaad Mahomed, a 50-year-old businessman from Lenasia. What began as a simple car purchase has spiralled into a half-decade legal battle, leaving his finances, reputation, and mental health in tatters.

From Dream Purchase to Legal Disaster

In late 2019, Mahomed bought a BMW X3M Competition from SMG BMW Century City in Cape Town. He paid a R200,000 deposit and signed a finance agreement with BMW Financial Services covering the remaining R1 million-plus. The car was meant to be transported to his local Midrand dealership for collection.

But before he could take delivery, red flags appeared.

Mahomed noticed the car being advertised online while it was still displayed in the dealership’s showroom. He worried potential buyers had test-driven it, compromising its “new” status. Despite his request to remove the advert, it remained live.

“I wasn’t happy,” he said. “This meant anyone could’ve driven it. For me, that made it a demo car.”

The dealership explained that the car was displayed because the basement parking was full and added that most new vehicles are driven multiple times during transport and offloading. Mahomed remained unconvinced.

Then came another red flag: the vehicle was missing the R12,000 carbon fibre trim he had paid for.

“I paid for that trim. When it wasn’t there, I said cancel the deal.”

BMW Kept Billing Despite Cancellation

Mahomed emailed BMW to terminate the deal. But instead of cancelling, the car was registered in his name. Then, without warning, over R23,000 was debited from his personal Absa account.

“I never even touched the car,” he said. “Yet they started billing me like I was driving it.”

He reversed several of the debit orders and redirected the money to his lawyer’s trust account, maintaining that the debit contract was supposed to link to his Nedbank business account. He insists BMW had no authority to deduct funds from his personal account.

For years, Mahomed emailed the dealership and BMW Financial Services to demand cancellation of the contract and an end to deductions. He says his attempts were ignored.

Financial Ruin and an Ongoing Probe

Today, Mahomed faces a civil lawsuit, with BMW Financial Services demanding over R1.6 million, including interest. The company claims the finance agreement became binding when the vehicle was delivered to the dealership in Sandton.

Mahomed disputes this, saying that delivery was never completed since he never collected or accepted the vehicle. He also argues that approving the finance without proof of insurance violates the Consumer Protection Act.

“I never insured the car because I never had it in my possession.”

The fallout has been severe. Mahomed claims the legal mess destroyed his business, left him blacklisted, and caused emotional and financial devastation.

“This started when I was 44. I’ve lost the prime years of my life.”

He also revealed that the Gauteng commercial crimes unit is currently investigating the matter. A salesman allegedly involved in the transaction has reportedly turned state witness in a wider fraud probe involving bank fraud.

BMW declined to comment, citing the matter as sub judice.

According to court documents, the case is scheduled for hearing in September 2025.

Also read: From Dream Car to Courtroom Drama: Gauteng Man’s R1.6 Million BMW Nightmare

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Source: IOL

Featured Image: Facebook/Automotive Lease Packaging