Purchasing a vehicle is a significant investment, and as a consumer, you have the right to expect that the car you buy will be safe, reliable, and free from defects. However, if you find yourself with a faulty vehicle, it’s crucial to understand your rights under South African consumer protection law, particularly within the context of Sections 55 and 56 of the Consumer Protection Act 68 of 2008 (CPA), as well as the implications for financed vehicles.

Your Rights Under Sections 55 and 56 of the CPA

1.     Section 55: Consumer’s Right to Safe, Good Quality Goods

This section guarantees that any goods you purchase must be of good quality, durable, and free from defects. The product should also be suitable for the purpose for which it was intended. For vehicles, this means that your car should be in a condition that allows it to be used safely and efficiently.

2.     Section 56: Implied Warranty of Quality

Under the CPA, there is an automatic six-month warranty on any goods purchased, including vehicles. If a defect is found within this period, you have the right to return the vehicle and can choose between a repair, replacement, or refund. This warranty is in place to protect consumers from being stuck with defective products.

Steps to Take If Your Financed Vehicle is Faulty

1.     Identify the Issue

The first step is to identify any defects or quality issues with your vehicle. These could include mechanical or electrical problems that affect the car’s usability or safety.

2.     Notify the Supplier

Once you’ve identified the issue, notify the dealership or seller promptly, preferably in writing. Detail the specific problems you’ve encountered with the vehicle. Clear communication is essential for ensuring your complaint is taken seriously and addressed promptly.

3.     Assess the Defect and Your Options

If the defect is found within the first six months of purchase, you can invoke your rights under Section 56 of the CPA. Depending on the nature of the defect, you can choose to have the vehicle repaired, replaced, or refunded.

4.     Involve the Financial Institution

If your vehicle is financed, it’s crucial to inform the financial institution about the issue, especially if you are seeking a refund or replacement. The financial institution has a security interest in the vehicle, so they may have specific procedures that need to be followed when a financed vehicle is returned or replaced. During this process, it is logical to continue paying your instalments according to the vehicle finance agreement until the matter is resolved. Once resolved, you may recover what you’ve spent from the supplier.

5.     Resolution Options

Refund: If you opt for a refund, the process will need to be coordinated with your financial institution. The outstanding balance on your loan will usually be settled first, and any remaining amount will be refunded to you.

Replacement: If you choose a replacement vehicle, the terms of your finance agreement may need to be adjusted to reflect the new vehicle.

Repair: If the vehicle is to be repaired, the supplier must do so at no cost to you, provided the defect falls under the implied warranty.

It’s essential to note that the specific terms of your finance agreement will play a crucial role in determining the outcome of your chosen resolution.

6.     Dispute Resolution

If you encounter resistance from the supplier or financial institution, you have the right to lodge a complaint with the National Consumer Commission (NCC) / Motor Vehicle Ombudsman or seek legal recourse. Keeping detailed records of all communications and transactions related to the defect and any actions taken will be critical if the matter escalates.

Final Thoughts

Understanding your rights as a consumer, particularly when dealing with significant purchases like vehicles, is essential. Should you find yourself facing issues with a faulty car, Sections 55 and 56 of the CPA offer robust protections. However, when a vehicle is financed, additional considerations regarding the finance agreement come into play and the situation must be navigated carefully.

It is always recommended that you consult with a legal professional, should you require advice. We are here to help guide you, ensuring that your rights are upheld and that you reach a fair and satisfactory resolution.

For more information, contact us at sadaina@dsglaw.co.za.