Dealership fined R100k for selling defective car

National Consumer Tribunal rules customer supplied a defective vehicle and act contravened

In the judgment, the tribunal fined the company R100,000 and ordered a total refund of R106 088.28 to the consumer and insurance company.
In the judgment, the tribunal fined the company R100,000 and ordered a total refund of R106 088.28 to the consumer and insurance company.
Image: 123RF

A car dealership has been fined R100,000 for selling a second-hand car which broke 28 days after being sold.

The National Consumer Tribunal made the ruling recently after a two-year standoff between Avura Executive Auto and its customer, who complained about the performance of her 2014 Mazda after she bought it, the National Consumer Commission (NCC) said last week.

According to the tribunal, the dealership contravened sections of the Consumer Protection Act (CPA).

In the judgment, the tribunal fined the company R100,000 and ordered a total refund of R106 088.28 to the consumer and insurance company.

The tribunal said NCC received a complaint from the consumer alleging that the dealership sold the consumer a defective vehicle. The NCC investigation revealed that in 2022, the consumer paid R288,577.50 for a pre-owned vehicle and within 28 days of the purchase, the vehicle manifested defects.

The consumer informed the supplier of the defects and elected to have the vehicle repaired. Avura Executive Auto refused to honour the consumer’s election stating that the vehicle was sold in good condition. The supplier further relied on their 30-day or 1,000km warranty.

The supplier’s refusal compelled the consumer to take the vehicle to a third party for repairs. The customer was charged R106,088 for parts and labour. The consumer’s warranty insurer paid R75,000 and the consumer paid the difference of R31,000.

On July 31, the NCC referred the matter to the tribunal, which ruled that Avura supplied a defective vehicle thus contravening sections 55(2)(a) to (d) and 56(2)(a) of the CPA.

Fact Box

Section 55(2)(a) to (d) states that every consumer has the right to receive goods that are reasonably suitable for the purpose for which they are generally intended, of good quality, and must be usable and durable for a reasonable period of time.

Section 56(2)(a) stipulates that “within six months after delivery of any goods to the consumer, the consumer may return the goods to the supplier without penalty and the supplier must, at the direction of the consumer repair or replace the unsafe or defective goods”.

The tribunal found “the contraventions are serious, displaying a total disregard for the CPA and the consumer’s rights”.

Further, the tribunal found that the consumer “was exploited by the sale of a vehicle which was not of good quality”.

The tribunal also ruled that the company refund the consumer R31,000 within 30 days business days of the judgment and also refund the consumer’s insurer R75,000 and the R100 administrative penalty.

Welcoming the judgment, the NCC’s acting commissioner Hardin Ratshisusu said: “This judgment should serve as a deterrence and a reminder to all suppliers that they must comply with the CPA and its regulations. Disregarding consumers’ rights as afforded to them under the CPA has serious consequences.”

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