Two consumers are getting their money back after they bought used cars that had defects they were not aware of.
The National Consumer Tribunal has ordered two used car dealers to refund two consumers a total of R395 075 for contravening the Consumer Protection Act (CPA). One of the dealers must also pay a fine of R50 000.
In the first case, a consumer complained to the National Consumer Commission (NCC), after buying a used 2015 Audi A3 from Kia East Rand for R245 000. Just over a month later, the car showed defects, such as the car overheating and displaying a “low engine pressure” warning on the instrument cluster.
The car was collected from the consumer to repair the water pump, but this did not fully resolve the defects as further inspection revealed that the cylinder head gasket had blown. After the dealer did more repairs, the oil warning light would go on every now and then.
The car also started smoking and making an unusual noise. According to Kia East Rand, they found that the car was over filled with oil and the consumer’s brother admitted that this was his fault.
The consumer then went to another workshop because it was so expensive to repair the Audi, but the workshop could not repair it. The consumer then told Kia East Rand to take the car back and cancel the transaction. However, the dealer refused as a 125-point check was conducted on the car before delivery and no defects were found. It also passed a Dekra test.
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Consumer Tribunal judgement based on section 56 of CPA
According to section 56 of the CPA, there is an implied warranty of quality, in any transaction or agreement for the supply of goods to a consumer, the producer or importer, distributor and retailer each warrant that the goods comply with the requirements and standards of section 55, that provides for the consumer’s rights to safe goods of good quality.
Section 56 provides that the consumer can return the goods within six months, without penalty and at the supplier’s risk and expense if the goods fail to satisfy the requirements and standards contemplated in section 55. The consumer can choose if the supplier must repair or replace the failed, unsafe or defective good or refund to the consumer.
In this case, subsection 3 applied, which provides that if the supplier repairs any particular goods or component and it fails or has a defect or becomes unsafe within three months and this is not fixed, the supplier must replace the goods or refund to the consumer.
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Consumer Tribunal did not agree with arguments from Kia East Rand
Hower, Kia East Rand argued that the faults do not fall under section 56 because the components were wear and tear components and that the remedies under section 56(2) also do not apply because the repairs fall under section 57.
The Consumer Tribunal did not agree that the matter falls under section 57, which deals only with repairs, and found that Kia East Rand contravened 56(3) of the CPA. The Tribunal said in its judgment, the car overheating and the head gasket blowing within six months of purchase rendered the car less suitable for the purpose it was generally intended for.
In addition, the Consumer Tribunal 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.
The Consumer Tribunal then ordered Kia East Rand to refund the consumer the vehicle’s purchase price and pay an administrative penalty of R50 000 for failing to implement the provisions of section 56(3).
ALSO READ: Consumer Tribunal orders used car dealer to refund consumer R146 000 for defective car
Consumer Tribunal also order TC Cars to pay up
In another case the Consumer Tribunal confirmed a settlement between the NCC and TM Cars, a Cape Town-based car dealership, making it an order of the Tribunal.
The NCC investigated the consumer’s complaint that he bought a 2013 3.0 D-40 Toyota Fortuner in May 2022 from TM Cars for R225 000. On the same day, the car developed certain defects and was returned to the supplier for repairs.
However, shortly after it was returned to the consumer, the same defects persisted. TM Cars agreed to refund the consumer R150 000 as the dealer was also in contravention of section 56.
Hardin Ratshisusu, acting NCC commissioner, said the NCC welcomes the two rulings, 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.”
