5 car dealers in hot water in South Africa

Five car dealers and a used parts dealer have been ordered to refund customers millions after contravening the Consumer Protection Act (CPA).

The National Consumer Commission (NCC) welcomed ten High Court and National Consumer Tribunal rulings, six against automotive sector suppliers.

“Six judgments dealt with the conduct of dealerships that failed to comply with the CPA,” the NCC explained.

“Two Tribunal rulings addressed suppliers of goods and services that failed to issue sales records, displayed goods written in a foreign language, and sold expired foodstuffs; one on refusal to refund for a cancelled trip; and the other dealt with an attempt to rescind a Tribunal judgment.”

The Gauteng Division of the High Court ordered the ten suppliers to refund consumers a total sum of R1,122,090.70 and pay R555,000 in penalties. The judgments were handed down between July and October 2026.

Automotive suppliers were ordered to pay R375,000 in fines and refund consumers R1,059,090.70, rising to R1,259,090.70 when including the prior R200,000 refund from Used Car Centre.

In the first ruling – against parts dealer Spares 4 Africa – the High Court dismissed an appeal by the supplier with costs.

This came after Spares 4 Africa referred the matter to the High Court following the Tribunal’s original ruling in 2024.

The Tribunal initially found that the supplier contravened sections 47 and 54 of the CPA, installing the wrong engine in a consumer’s 2017 Ford Focus and retaining the vehicle for more than four years.

The Tribunal ordered Spares 4 Africa to return the vehicle and refund the R5,000 deposit the consumer paid, with interest. The supplier was also ordered to pay an administrative fine of R75,000.

Five dealers in trouble

The dealerships – Flawless Cars, Sunward Motors, Used Car Centre, Auto King Milnerton, and Kia East Rand – were ordered to refund suppliers millions and pay thousands in administrative fees.

The Tribunal found that Flawless Cars contravened the CPA after it disregarded a compliance notice issued by the NCC in August 2025.

The NCC investigated a consumer complaint after they purchased a Ford Fiesta for R170,000 in December 2015 and started experiencing continuous mechanical issues within six months.

“In June 2016, the consumer requested cancellation of the sale agreement after numerous attempts were made to repair the vehicle, but Flawless Cars ignored the request and collected the vehicle for further repairs,” said the NCC.

Investigations found the car remained in the supplier’s possession since June 2016, and the supplier contravened the CPA and was instructed to refund the consumer the vehicle’s purchase price and pay a penalty of R100,000.

In the Sunward Motors matter, a complaint was lodged by a consumer after paying R341,852.50 for a used 2016 Ford Tourneo Connect in February 2023.

“Following multiple mechanical breakdowns, the consumer invoked their rights to cancel the contract under section 56 of the CPA,” said the NCC.

“Sunward Motors failed to provide a refund or replacement as required by law. The Tribunal ordered Sunward Motors to refund the consumer R302,898.”

The Tribunal confirmed a settlement agreement between the NCC and Used Car Centre after an investigation into a complaint lodged by a consumer regarding a defective pre-owned vehicle. 

The dealership already refunded the R200,000 purchase price, but the NCC identified prohibited terms in the sale agreement in which the supplier tried to make the consumer waive their statutory rights. The penalty was an additional R50,000.

In the Auto King matter, the supplier was ordered to pay R336,117.70 to a consumer and their financing bank after the Tribunal found that it contravened the CPA.

“The consumer purchased a used 2015 Hyundai H1 for R328,345 that continuously emitted heavy dark smoke, suffered from a persistent internal engine oil leak in the turbocharger, and experienced a compromised cylinder head,” said the NCC.

The Tribunal cancelled the sale and credit agreements, directed the dealership to collect the vehicle, refund the consumer R90,000, and repay R246 117.70 to the financing bank. Auto King was fined R100,000.

In a High Court judgment, Kia East Rand’s appeal against the Tribunal’s ruling was dismissed with costs after it ruled in favour of the NCC and ordered the supplier to refund the consumer R245,075.

Kia East Rand was ordered to pay an administrative fine of R50,000 and bear the legal costs of the appeal after a consumer bought a defective pre-owned 2015 Audi A3 in 2022.

The vehicle exhibited persistent defects, including engine overheating and recurring oil pressure warning lights within weeks of purchase, and despite three attempts, the supplier failed to resolve the defects.

“The High Court upheld the Tribunal’s finding that Kia East Rand contravened the CPA, confirming that the dealership must refund the consumer the purchase price of the vehicle and an administrative fine as imposed by the Tribunal,” said the NCC.