Your legal rights when buying or selling a car in South Africa

South Africa’s Consumer Protection Act (CPA) ensures that individuals are not taken advantage of when dealing with a business, with particular clauses related to the buying and selling of a vehicle.

Knowing your basic rights and obligations as a motorist can therefore be the game-changer during your next interaction with a car dealer, said Jakkie Olivier, CEO of the Retail Motor Industry Organisation (RMI).

“Unfortunately, we often come across cases where motorists have little to no understanding of their basic rights and obligations, as captured in the Consumer Protection Act, and this leaves parties open to exploitation,” said Olivier.

“It is important to understand that these rights are in place to protect consumers and businesses.”

Let the CPA work for you

The RMI highlighted Section 55 of the CPA as carrying significance for transactions between buyers/sellers and vehicle dealers.

Firstly, the section stipulates that the goods exchanged between the parties should be able to deliver the service or perform the task for which it was created.

This means that the vehicle should be of good quality, free of any defects, and be in operating condition, and in the case of a used vehicle, consistent with its age and mileage. It must also be durable and useable for a “reasonable” time period, unless it is bought at auction in which case a different set of regulations apply.

In addition, an official car dealer may not sell any vehicle as “voetstoots” or “as is” irrespective of whether they have declared any defects. A car can only be sold as voetstoots in a private sale and if a full list of all known defects is provided to the buyer by the seller.

“You as the buyer would then in the sale agreement have to sign and acknowledge the presence of those defects. Any defect outside that list is not covered by the voetstoots clause,” said Olivier.

“If any defects are discovered within six (6) months of the sale, you have the right to insist on repair, replacement, or a refund.”

When interacting with a dealer, on the other hand, the CPA indicates that a vehicle can be returned within the stipulated number of days provided in the purchase contract. However, the business may only accept the vehicle back if it is within a reasonable condition.

“There are clear rules within the CPA on when you can return a vehicle, the most critical being when there is a material defect, failure, or hazard that is not due to any alteration that you have made to the vehicle after buying it,” said Olivier.

Buyers should also remain mindful of instances where used goods are subject to a warranty, and that electrical equipment or parts will usually have a warranty condition that requires them to be fitted by a qualified professional.

These warranties are subject to strict terms and conditions to remain in effect and should be studied before they are unknowingly voided.

“Here again accreditation matters and consumers would be wise to be mindful of this,” says Olivier.