DFSK kicks off in East London

Melanie Herman, owner and Dealer Principal of the new facility in the Eastern Cape tells Dealerfloor that although this is her first venture as an owner of a new vehicle dealership, she is no stranger to it, working in different senior capacities at Kia and Volkswagen dealerships over the years.

She decided to do her own thing a couple of years ago and after leaving the franchise dealership space, she opened a workshop, specialising in mainly Volkswagen services and repairs.

Melanie then extended her knowledge of the car and used car retail business and established a used car dealership, Mels Cars, in Gonubie, a 20-minute drive from East London with a choice of around 30 vehicles.

But to get back to the new kid in her portfolio, DFSK. “We are in our first month of business and the interest is heartwarming,” she tells us.

“The DFSK range consists of commercial vehicles in the form of small bakkies and panel vans. From a price perspective and the load capacity the vehicles offer, it is hard to beat. The brand has a solid reputation and is doing exceptionally well in South Africa.

“In our environment in East London and our area of responsibility stretching up to towns like Makanda (Grahamstown) and Komani (Queenstown) to mention the more well-known ones, the economy is struggling. This means we see a lot of small business and start-ups, and our commercial range is a budget-fit for them,” Melanie tells Dealerfloor.

She says like many new vehicle franchises, at DFSK they also have structured finance agreements making buying a vehicle easier. “We realise small businesses and start-ups have tight budgets and need the back-up of a full-fledged dealership. Providing services, parts and assistance is vital for any brand operating in the commercial environment. Without vehicles businesses cannot operate,” she says.

Asked about the other two businesses in the portfolio, Melanie says the Right to Repair legislation is a huge benefit for their VW-specialist workshop. The business is growing very well, and from a customer budget perspective a solution for many vehicle owners.

The used car business is also doing well, she tells Dealerfloor, outselling some of the bigger names in the used car business for which she is thankful. “This side of our business relies on the ups and downs of the economy with customers often forced to ‘buy down’ and look at a used vehicle for their specific needs.

And what about the road ahead? “Well, without saying too much, we are looking at opening up another new vehicle dealership in the near future,” Melanie tells Dealerfloor.