Absa, NADA sign formal partnership agreement

The agreement commits the two parties to shared initiatives that focus on professional development, transformation, and operational excellence.

While Absa and NADA have worked together for years, the new agreement, the first of its kind in the auto trade, formalises this partnership for the benefit of dealers and ultimately of their customers.

Says Charl Potgieter, Managing Executive of Absa Vehicle and Asset Finance: “It’s a privilege to be here today.

“While it may feel unusual to formalise something that has existed informally for so long, this moment marks a renewed commitment to strengthening our partnership with NADA. Our ambition is clear – to support the growth and sustainability of the automotive industry, particularly through strong dealer partnerships.”

Absa and NADA say that they will focus on a few important initiatives, while remaining open to other opportunities as their partnership develops.

The initiatives are:

Elevating Finance and Insurance (F&I) Standards

F&I Managers are a pivotal part of the vehicle sales process, both for the dealership and the customer. These managers must handle the dual pressure of helping customers get the best possible deal, while protecting them and the dealership against fraud.

To support F&I Managers, Absa and NADA will develop an F&I Awards programme that will support and celebrate the outstanding performance and professionalism of these individuals.

Professional development

Absa and NADA will develop Continued Professional Development (CPD) programmes for F&I Managers and other dealer personnel.

With their deep knowledge of the industry and the vehicle sales process, these CPD programmes promise to truly benefit a dealership and ultimately improve sales and customer service.

Driving transformation and inclusion

Industry transformation and the inclusion of previously disadvantaged individuals has been a mainstay of both Absa and NADA’s individual programmes and it will receive the same level of attention under the new agreement.

The parties say that this initiative will also focus on growing industry participation and the industry as a whole.

Growing the auto industry holds great benefit for the South African economy as a whole. The auto industry contributed over 5% to SA’s gross domestic product (GDP) in 2024, and any additional growth will invariably lead to knock-on benefits for associated sectors, such as mining, engineering, training and education and the wider manufacturing industry.

“When we come together as an industry to tackle shared challenges, we are far more effective. Partnerships are not just important, they’re part of our DNA,” says Charl, who noted that there is a growing need for collaboration in areas such as customer education, dealer training, and fraud prevention.

NADA Chairperson Brandon Cohen welcomed the agreement and emphasised that the partnership aligns with NADA’s broader objective of working inclusively with all financial institutions.

“The rise in fraud and shifting consumer behaviours demand updated methods and deeper collaboration. As dealers, we are often the face of the bank at the point of sale, so stronger alignment only improves outcomes for the customer, the dealer and the financial industry.”

“We are equally excited at the opportunity to jointly recognise the excellence that exists across our dealer networks, particularly in the F&I space. This partnership allows us to celebrate that excellence while investing in the future of our people and the resilience of our sector.

“The Collaboration Agreement with Absa is a significant milestone in our long-standing relationship and an exciting prospect for advancing the South African automotive dealership sector. We are confident that this strategic partnership will create substantial value for both NADA and Absa, as well as our respective stakeholders, and contribute to a more vibrant and progressive industry,” says Brandon