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Consumer rights upheld: Tribunal orders vehicle dealership to refund consumer R146,000 for defective car
Consumer rights upheld: Tribunal orders vehicle dealership to refund consumer R146,000 for defective car

IOL News

time06-08-2025

  • Automotive
  • IOL News

Consumer rights upheld: Tribunal orders vehicle dealership to refund consumer R146,000 for defective car

The National Consumer Tribunal has ruled that a vehicle dealership must refund a consumer after they purchased a defective vehicle. Image: Supplied The National Consumer Tribunal has ruled in favour of a consumer who purchased a defective second-hand vehicle, ordering Nolly Motors (Pty) Ltd to refund R146,000 and collect the faulty car at its own expense. The ruling follows an investigation by the National Consumer Commission (NCC) after the consumer lodged a complaint under the Consumer Protection Act (CPA). According to the NCC, the consumer bought a used 2013 Audi A4 from Nolly Motors on 13 April 2022. Two days after collecting the vehicle on 15 April, the consumer began experiencing defects and requested the supplier to repair the car, a request that went unattended. On 29 April 2022, the consumer informed Nolly Motors of the intention to cancel the sales agreement and request a full refund. The supplier refused, leaving the consumer to cover the cost of repairs. The Tribunal found that Nolly Motors had contravened sections 56(2)(a) and (b), read with 55(2)(a) to (c) of the CPA. These sections provide that goods must be of good quality, free of defects, and suitable for their intended purpose. In addition, section 56(2)(b) states that within six months of delivery, consumers may return defective goods without penalty. The Tribunal ruled that 'the supplier must refund the consumer the full purchase price of R146,000.00 and collect the vehicle from the consumer at its own expense.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ While the NCC also alleged that Nolly Motors used unfair contract terms including the 'as is' and 'without warranty' clauses, this was not adjudicated because the complaint was filed after the three-year limitation period outlined in section 116 of the CPA. However, the Tribunal held that such terms do not override the rights afforded to consumers by the CPA. 'The NCC welcomes this judgment of the Tribunal, as it reaffirms the importance of suppliers to respect consumer rights in the marketplace,' said Acting Commissioner Hardin Ratshisusu. 'This judgment should serve as a deterrent to other suppliers from engaging in similar conduct.' The NCC urged consumers who face similar issues to lodge complaints and familiarise themselves with the rights guaranteed under the CPA. THE MERCURY

Consumer tribunal orders dealership to refund customer after faulty Audi A4 sold
Consumer tribunal orders dealership to refund customer after faulty Audi A4 sold

IOL News

time06-08-2025

  • Automotive
  • IOL News

Consumer tribunal orders dealership to refund customer after faulty Audi A4 sold

The consumer purchased a 2013 Audi A4. Image: Pinterest The National Consumer Tribunal has ruled in favour of a consumer who purchased a faulty Audi A4 and ordered the dealership to refund the purchase price. This decision against Nolly Motors (Pty) Ltd was welcomed by the National Consumer Commission (NCC). According to reports, the consumer complained to the dealership after the purchase of a defective second-hand vehicle. The NCC received the complaint and investigated the allegations of contraventions of the Consumer Protection Act (CPA). Spokesperson for the NCC, Phetho Ntaba, said the investigation revealed the used vehicle, a 2013 Audi A4 was purchased on April 13, 2022, and the consumer paid R146,000. 'The consumer collected the vehicle on April 15, 2022, and experienced defects two days later. The consumer informed the supplier of the defects and requested Nolly Motors repair the vehicle. This request was not attended to. On April 29, 2022, the consumer further informed the supplier of the intention to cancel the sales agreement and request a full refund; however, the supplier refused to cancel the transaction. This forced the consumer to pay for repairs,' Ntaba said. The Tribunal found that by refusing to repair the vehicle or refund the consumer on the purchase price, Nolly Motors was indeed in contravention of the CPA. 'Section 55(2)(a) to (c) of the CPA gives a consumer the right to receive goods that are reasonably suitable for their intended purpose; that are of good quality; in good working order; free of defects; and usable and durable for a reasonable time. Section 56(2)(b), on the other hand, states that 'Within six months of delivery of any goods to a consumer, the consumer may return those goods to the supplier, without any penalty and at the supplier's risk and expense.',' Ntaba said. During judgment, the Tribunal ruled in favour of the consumer and ordered the dealership to refund the full R146,000 and collect the vehicle at its own expense. The NCC's Acting Commissioner, Hardin Ratshisusu, said that while the unfair contract terms were not adjudicated due to being lodged after the three-year limit outlined in section 116 of the CPA, the Tribunal still found that Nolly Motors' terms and conditions contravene the CPA. Their terms stipulate that the car was sold 'as is' and without warranty, finding that such terms do not override the consumer protections enshrined in the CPA. 'The NCC welcomes this judgment of the Tribunal, as it reaffirms the importance of suppliers to respect consumer rights in the marketplace. This judgment should serve as a deterrence to other suppliers from engaging in similar conduct,' Ratshisusu said. IOL

Consumer Tribunal orders used car dealer to refund consumer R146 000 for defective car
Consumer Tribunal orders used car dealer to refund consumer R146 000 for defective car

The Citizen

time05-08-2025

  • Automotive
  • The Citizen

Consumer Tribunal orders used car dealer to refund consumer R146 000 for defective car

Yet another used car dealer got a hiding at the Consumer Tribunal for selling a consumer a defective car and then refusing to fix it. The National Consumer Tribunal has ordered a used car dealer from Kempton Park to refund a consumer R146 000 for a defective used car that it failed to repair after the consumer complained. When the consumer then decided to cancel the transaction, the dealer refused. After telling the dealer that she does not want to buy an accident-damaged vehicle, the consumer bought a used 2013 Audi A4 from Nolly Motors in April 2022 for R146 000, but two days after she collected the car, she noticed it had defects that included: a leaking overflow tank/reservoir which subsequently caused the engine to overheat poorly fitted suspension made of substandard materials a brake fluid leak all four tyres were worn out the car had no service history book and the car had no jack, wheel spanner or spare wheel, despite Nolly Motors promising they would be included when the sales agreement was concluded. She informed the dealer of the defects and requested Nolly Motors to repair the car, but it was not done. ALSO READ: Even an old car cannot be bought voetstoots or 'as is' from a used car dealer Prohibited 'voetstoots' clause The purchase agreement contained these provisions that contravene the CPA: 'All cars purchased at Nolly Motors are sold as they are; customers must check everything before they can take the car. Should the customer experience any problems with the car, the dealership will only be responsible for the fixing of all electrical problems only for the first 30 days. There is no exchange after 3 days of purchase. Should the customer decide to terminate the deal, 50% will be deducted from the full deposit paid. There will be no refund of deposit should the client decide not to take the car. The goods will therefore be sold as is.' The consumer got a quote for new tyres of R6 160 and took the car to another workshop for repairs that cost R8 440 for replacing the water pump, resealing the front cover and the addition of anti-freeze. The consumer then requested Nolly Motors to cancel the sales agreement and request a full refund, but the dealer refused to cancel the transaction. She said she wanted to cancel because she could not afford the repair costs. She also discovered that the car had been involved in an accident, contrary to her explicit stipulation before the sale that she did not want to buy an accident-damaged vehicle, and that the vehicle was sold 'voetstoots,' contrary to the provisions of the Consumer Protection Act (CPA). The consumer took the car for further repairs costing R33 842. ALSO READ: Tribunal fines used car dealer R100 000 for disregarding consumer's rights NCC referred the case to the Consumer Tribunal for contravening sections of the CPA When the National Consumer Commission (NCC) investigated the consumer's complaint and when it could not be resolved amicably, it referred it to the Consumer Tribunal. The NCC asked the Consumer Tribunal to declare that Nolly Motors contravened section 56(2)(a) and (b) read with section 55(2)(a) to (c), as well as section 48(1)(b), and (c) read with section 51(1)(a) and (b) and that these contraventions be declared prohibited conduct. The NCC also wanted the Consumer Tribunal to interdict the dealer from engaging in similar conduct, order the dealer to refund the consumer the purchase price as well as the costs of the repairs and fine the dealer R1 million for prohibited conduct. According to section 55(2)(a) and (b), every consumer has the right to receive goods that are reasonably suitable for their intended purpose, of good quality and usable and durable for a reasonable period. Section 56(2)(a) and (b) stipulates that a consumer can return goods to the supplier without penalty within six months, and the supplier must repair or replace the unsafe or defective goods. The consumer can choose to have the goods repaired or replaced. ALSO READ: Another used car dealer pays the price for selling a defective car Consumer Tribunal judgment The Consumer Tribunal found that by refusing to repair or refund the consumer the purchase price, Nolly Motors indeed contravened sections 56(2)(a) and (b) of the CPA read with 55(2)(a) to (c). Handing down the judgement, the Consumer Tribunal ruled that Nolly Motors must refund the consumer the full purchase price of R146 000 and collect it at its own expense. The Consumer Tribunal did not order a refund of the repair costs because some of the repairs were done outside the six months that consumers have to complain about defects, while the NCC made no case for a refund of these costs. The Consumer Tribunal also did not fine Nolly Motors, because the dealer has a clean record and only now contravened provisions of the CPA. In addition, the Consumer Tribunal said the refund of the car's purchase price against the return of the vehicle, which obviously would have diminished in value due to the lapse of time and its use, would be reasonable in the circumstances and serve as a deterrent for the dealer and other used car dealers. Therefore, it did not impose an administrative fine. ALSO READ: Buying a pre-owned car? Remember these consumer rights No fine for 'voetstoots' clause but a warning from the Consumer Tribunal While the unfair contract terms were not adjudicated due to being lodged after the three-year limit outlined in section 116 of the CPA, the Tribunal still found that Nolly Motors' terms and conditions contravene the CPA. Their terms stipulate that the car was sold 'as is' and without warranty, finding that these terms do not override the consumer protections enshrined in the CPA. 'The NCC welcomes this judgment of the Consumer Tribunal, as it reaffirms the importance of suppliers to respect consumer rights in the marketplace. This judgment should serve as a deterrent to other suppliers from engaging in similar conduct,' Hardin Ratshisusu, acting commissioner of the NCC, says.

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