Consumer Commission calling for R1 million fines for six used car dealers

The National Consumer Commission is taking on more used car dealers and workshops who sell defective cars and then refuse to repair them free of charge or refund the consumers when they develop problems within the first six months, calling for the National Consumer Tribunal to declare their conduct prohibited and fine them R1 million each.

According to section 55 of the Consumer Protection Act (CPA), that deals with consumers’ rights to safe, good quality goods, the used car you buy must be safe and of good quality, but this section is not applicable if you bought the car at an auction. You have the right to buy a car that is reasonably suitable for the purpose it is intended for.

The used car must be of good quality, in good order and free of any defects and useable and durable for a reasonable period of time, depending on what you will generally use it for, unless the dealer has told you expressly about defects on the car and you still agreed to buy it.

Seeing that the dealer sells cars, you can also in terms of this section assume that he will give you good advice when you explain what you will use the car for.

ALSO READ: Consumer Tribunal finds another three used car dealers guilty of prohibited conduct

Section 56 of the CPA deals with the implied warranty of quality and in the case of a used car, guarantees that the car adheres to the standards set in section 55. If this is not the case, you can return the car within six months after buying it and the dealer has to repair it, exchange it or give your money back.

In addition, this repair work is guaranteed for three months and if it breaks down again within this time, the dealer must repair it free of charge again or give your money back.

National Consumer Commission takes on used car dealers

The National Consumer Commission (NCC) says in a statement it referred six car dealerships to the National Consumer Tribunal (NCT) for adjudication after receiving complaints from consumers alleging that they contravened the provisions of the CPA.

The NCC investigated complaints against:

• Autoview Pre-Owned, based in Boksburg in Gauteng
• Cederquist Trade Transmission based in Stikland in Bellville, in the Western Cape
• Myaa Auto CC
• Super-Tech-Motor Holding, trading as BMW, based in East London in the Eastern Cape
• Avura Motors trading as Avura Executive Motors from Rustenburg in the North West province, and
• Plett Motors from Plettenberg Bay in the Western Cape.

ALSO READ: Consumer Tribunal fines two used car dealers and orders R1 million total refund

Autoview Pre-Owned

According to the NCC, it received and investigated two complaints against Autoview Pre-Owned that allegedly contravened various sections of the CPA. In the first case, Autoview Pre-Owned sold a consumer a 2010 BMW X3 from the supplier for R240 840 and within six months of delivery, there were defects on the car.

Upon inspection, it was discovered that the gearbox was faulty. The quotation to repair the gearbox amounted to R90 198.89, but the NCC says Autoview Pre-Owned refused to replace the gearbox.

Another consumer bought a Jeep Cherokee from Autoview Pre-Owned for R196 850 and within two months of delivery, the car had some defects. The consumer reported the defects to Autoview Pre-Owned, but the dealer refused to repair the defects.

In both cases, Autoview Pre-Owned allegedly contravened sections 56 and 55.

Avura Motors

The NCC says a consumer bought a car from Avura Motors for R288 577.50 and within 28 days of delivery, the consumer noticed defects on the car. He asked Avura Motors to repair the car, but the dealer refused, saying that its warranty states that it can only assist if the car is driven for 1 000km or if a defect manifests within 30 days. By refusing to repair the car, the NCC says Avura Motors contravened section 56(2) of the CPA.

ALSO READ: Buying a pre-owned car? Remember these consumer rights

Plett Motor Services

A consumer bought a VW Beetle for R70 000 from Plett Motor Services and it broke down on the same day that the consumer collected it from the dealer. The consumer chose to have the car repaired and it was done, but on collection the consumer discovered that the car was not drivable and asked for the sale to be cancelled.

However, Plett Motor Services refused to cancel the transaction, contravening section 56 (3) of the CPA, the NCC says.

Myaa Auto

The NCC also received a complaint from a consumer who bought a car from Myaa Auto CC and discovered defects the following day. The consumer asked the dealer to cancel the transaction and refund him, but the dealer refused.

The NCC’s investigation revealed that the built-in system interface (BSI) and the gearbox were faulty. The dealer’s contravened section 56(2) of the CPA because he refused to cancel the transaction.

ALSO READ: These ombud complaints highlight what to look out for when buying a used car

Super-Tech-Motor Holding trading as BMW

The NCC also received and investigated a complaint against Super-Tech-Motor Holding, trading as BMW. The investigation revealed that the consumer took his car to “BMW” for repairs, but after he collected the car and drove it for about 10 kilometres, the same problem was still there.

The consumer requested a refund for the repair work, but “BMW” refused, contravening section 54(2) of the CPA.

Cederquist Trade Transmission

A consumer took his car to Cederquist Trade Transmission for repairs to its transmission and accepted the quotation of R35 024.69. A few days after he collected his car, the consumer had to return twice to the dealer because the defects were still not fixed.

The NCC says section 54 of the CPA gives consumers the right to demand quality service. If the supplier fails to perform a quality service as the consumer expects, the supplier must refund the consumer a reasonable portion of the price paid for the services performed.

ALSO READ: Get up to speed: Your rights when buying a car

Referral to the National Consumer Tribunal

The NCC referred these matters to the Tribunal to seek redress for each consumer and an administrative penalty of 10% of each supplier’s total annual turnover or R1 million, whichever is greater. The Commission is also asking the Tribunal to declare each supplier’s conduct as prohibited.