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

The National Consumer Tribunal has fined two car dealers and ordered one of them to repay a consumer R1 million after hearing the cases brought by the National Consumer Commission. Second hand cars are often a problem for consumers and this goes to show that it is not a battle you have to wage by yourself.

The consumers complained at the National Consumer Commission (NCC) about used cars they bought from Wingfield Motors and Sandton Repo Cars. After the NCC investigated their complaints and found that the dealers contravened the Consumer Protection Act (CPA) in both cases, the matters were referred to the National Consumer Tribunal (NCT).

The Tribunal found that Wingfield Motors, trading as Best Price for My Car in the Western Cape, contravened sections 55(2)(a) to (c) and 56(2) of the CPA. The consumer bought a second-hand Ford Focus RS 2.3 EcoBoost AWD 5dr 2017 vehicle for R568 000 but discovered defects within three days which required repairs estimated at over R62 000. Wingfield Motors refused to repair the vehicle.

When the dealer refused to repair the car, the consumer exercised his right to cancel the transaction and sought a refund as provided in the CPA. The supplier refused to refund the consumer, a violation of section 56(2)(a) and (b) of the CPA.

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Sections 55 and 56 of the CPA protect your rights when you buy a used car

According to section 55 of the CPA, 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 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 already 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.

Section 56 is also very important when you buy a used car and 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 or give your money back.

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

Wingfield Motors: pay back R568 00 and R50 000 administrative fine

The Tribunal found that the conduct of Wingfield Motors violated the CPA and declared its conduct prohibited. In addition, the Tribunal ordered Wingfield Motors to refund the consumer an amount of R568 000 and imposed an administrative fine of R50 000.

The tribunal said in its judgment that it is persuaded that a strong message must be sent that second-hand car dealers cannot escape the peremptory provisions of the CPA. “Their services must be aligned with the CPA. Consumers must be protected against retailers accepting the purchase amount and not repairing a consumer’s vehicle or refunding the consumer when material defects manifest within the prescribed period.”

Sandton Repo Cars was also ordered to refund a consumer the full purchase price of R459 900 for a 2018 Volkswagen TSI Golf-R motor vehicle. Sandton Repo Cars claimed the vehicle was accident-free when selling it to the consumers, but shortly after collecting the vehicle, the consumer noticed defects in it.

The consumer cancelled the transaction and demanded a refund, but the supplier refused to refund him. The NCC’s investigation revealed that the vehicle had been involved in an accident before the consumer bought it and in addition, he was made to sign a Mechanical Breakdown Warranty Refusal Notification, which exonerated the supplier from any defects manifesting after collection.

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

Sandton Repo Cars: pay back 459 900 and a fine of R100 000

The Tribunal ruled that Sandton Repo Cars contravened section 51(1)(b) of the CPA by including terms that indirectly waived the consumer’s rights, contravened 55(2)(a) to (c) by supplying a defective vehicle and contravened 56(2)(b) by failing to refund the consumer.

Therefore, the Tribunal ordered Sandton Repo Cars to refund the consumer an amount of R459 900 and imposed an administrative penalty of R100 000.

Acting commissioner of the NCC, Hardin Ratshisusu, expressed concern over various car dealerships continuing to disregard the provisions of the CPA. “Dealerships for second-hand vehicles must provide vehicles that are safe, defect-free and durable and must repair, replace, or refund vehicles that fail to meet these standards.

“Failure to adhere to these principles not only harm consumers but also undermines the core objectives of the CPA. The judgment and reasons of the Tribunal in these two cases affirm that the rights of consumers must be respected.

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

When can you simply return the car and claim your money back?

Remember that you cannot just return the car and get your money back due to a small defect on the car such as a broken window switch. While you cannot open the window, you can still drive the car and that is what you bought it for. However, the dealer must still repair the window on his cost.

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