Two used-car dealers in South Africa have been fined a sum of R150,000 and ordered to refund R1 million.
Following complaints from customers to the National Consumer Commission (NCC), investigations revealed that Wingfield Motors, trading as Best Price for My Car in the Western Cape, and Sandton Repo Cars in Gauteng, were both in contravention of the Consumer Protection Act (CPA) after refusing to repair faulty vehicles they sold under the guise of being in perfect condition.
Consumer rights must be respected
The case of Wingfield Motors involved a customer who purchased a pre-owned 2017 Ford Focus RS for R568,000.
Within three days of taking delivery of their swanky hot hatch, the individual discovered undeclared defects that required repairs estimated at over R62,000, which the dealer refused to take responsibility for.
The consumer subsequently attempted to exercise their right in terms of the CPA to cancel the transaction and get a refund, which Wingfield Motors declined.
The owner relayed this experience to the NCC, which found that Wingfield Motors contravened sections 55(2)(a) to (c) and 56(2) of the CPA.
The National Consumer Tribunal (NCT) therefore declared that Wingfield Motors’ conduct in this matter was prohibited as per the CPA, and ordered the supplier to refund the total purchase price of the car (R568,000) and pay an administrative fine of R50,000.
In a similar vein, the case of Sandton Repo Cars saw a consumer buy a 2018 VW Golf R for R459,900 which the dealer claimed was entirely accident-free.
Shortly after collecting the vehicle the new owner noticed serious defects. They opted to cancel the transaction and demanded a refund in terms of their rights set out in the CPA, which Sandton Repo Cars refused.
Investigations by the NCC discovered that the Ford had indeed been involved in an accident prior to it being purchased and that the consumer was made to sign a Mechanical Breakdown Warranty Refusal Notification, which exonerated the supplier from any defects manifesting after collection.
The NTC 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.
As a result, it ordered the dealer to refund the consumer an amount of R459,900 and imposed an administrative penalty of R100,000.
NCC Acting Commissioner, Hardin Ratshisusu, expressed concern over the continued disregard of the CPA by various car dealerships in South Africa.
“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,” he said.
“The judgment and reasons of the Tribunal in these two cases affirm that the rights of consumers must be respected.”
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