Consumer Tribunal orders two used car dealers to refund over R395,000 for selling faulty vehicles
The National Consumer Tribunal has ordered two car dealerships to refund customers after investigations found they sold defective second-hand vehicles.
Image: IOL
The National Consumer Tribunal has ordered two car dealerships to refund customers after investigations found they sold defective second-hand vehicles.
Kia East Rand, based in Gauteng, and TM Cars, operating in Cape Town, were found to have breached several provisions of the Consumer Protection Act (CPA). The rulings follow investigations by the National Consumer Commission (NCC), which welcomed the outcomes as a victory for consumer rights in South Africa.
In the first case, a consumer purchased a 2015 Audi A3 from Kia East Rand in September 2022 for R245,075. Just over a month later, the vehicle began overheating and displayed a “Low Engine Pressure” warning.
"The vehicle was collected from the consumer to repair the water pump. However, the defects were not fully resolved as further inspection revealed that the cylinder head gasket had blown," the NCC said.
"The Tribunal found that the supplier contravened 56(3) of the CPA. According to the Tribunal, “the overheating of the vehicle and the blowing up of the cylinder head gasket within six months of purchase rendered the vehicle less suitable for the purpose for which it was generally intended".
The Tribunal further stated that the provisions of section 56(3) oblige a supplier who repairs defective goods to either replace the goods or refund the purchase price…”
"Kia East Rand was ordered to refund the consumer the vehicle’s purchase price. The supplier was further ordered to pay an administrative penalty of R50 000 00 (Fifty Thousand Rand)".
In the second case, TM Cars (PTY) Ltd was found to have sold a 2013 Toyota Fortuner for R225,000 on 22 May 2022. According to the NCC, the vehicle developed defects on the same day it was delivered to the consumer.
"On the same day, the vehicle developed certain defects and was returned to the supplier for repairs. However, shortly after being returned to the consumer, the same defects persisted. This contravened section 55(2)(a) -(c) read with section 56(3)(b) of the CPA".
"The supplier agreed to refund the consumer R150,000.
The NCC’s Acting Commissioner, Hardin Ratshisusu, said, “The NCC welcomes the two rulings from the NCT, as both send a clear message to suppliers that consumer rights must be protected. The NCC believes that the Tribunal’s decisions will discourage other suppliers from participating in illegal practices.”
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