Cape Town dealership appeals R200K fine & refund order after faulty vehicle sale! A Cape Town-based car dealership, WP Motor Sales, has filed an appeal against a ruling handed down by the National Consumer Tribunal (NCT), which fined the company R200,000 and ordered it to refund a customer more than R270,000. The dealership has expressed concerns about the fairness of the decision and is challenging several aspects of the tribunal’s findings.
The case stems from a complaint by Fernell Waydon Pretorius, who purchased a second-hand vehicle from the dealership on January 17, 2020, for R276,607.49. The purchase was financed through Nedbank.
At the time of the sale, the vehicle had a recorded mileage of 115,567 kilometres. However, just two days after the sale, on January 19, the car experienced a catastrophic engine failure. The incident occurred during a trip from Cape Town to Heidelberg, Gauteng, while being driven by Pretorius’s father. The breakdown rendered the vehicle unusable, prompting Pretorius to seek recourse under the Consumer Protection Act (CPA).
Cape Town dealership
Dealership Challenges Tribunal’s Findings
In its appeal, WP Motor Sales argues that the NCT did not fully consider critical evidence presented during the hearing. One of the dealership’s main contentions is that the breakdown was due to the driver’s negligence, not a mechanical defect. They assert that the tribunal failed to consider this in its deliberation.
Furthermore, the dealership claims that Pretorius had accepted and used the car after it had been repaired, which they argue constitutes repudiation of any cancellation request. They also raised concerns over what they described as contradictory statements made under oath by Pretorius, particularly in relation to whether or not he had returned the vehicle.
In response to the R200,000 administrative fine, WP Motor Sales believes the penalty is excessive, especially considering that the company has no prior history of serious misconduct.
“We are currently awaiting the full record from the NCT to expedite the process,” the dealership stated, indicating their intent to proceed formally with the appeal process.
Tribunal Upholds Consumer Rights
In its decision, the NCT ruled in favour of Pretorius, stating that he was entitled to a refund and that the dealership had contravened several sections of the Consumer Protection Act. The tribunal emphasized that consumers have a right to receive goods that are of good quality, in working order, and free from defects, even when those goods are second-hand.
The tribunal held that the engine failure so soon after purchase was clear evidence that the car was not durable, and therefore, the dealership had failed to meet the necessary legal standards. Additionally, the tribunal found that Pretorius had exercised his legal right to cancel the agreement and seek restitution within the six-month statutory warranty period provided by the CPA.
It was also noted that the dealership was required to collect the vehicle within three days of the breakdown, which further supported Pretorius’s claim that the car was unfit for use.
Fine and Refund Upheld
Given the seriousness of the contraventions, the tribunal determined that a fine of R200,000 was appropriate, even though WP Motor Sales had no prior record of similar violations. In addition to the fine, the dealership was also ordered to refund Pretorius the full purchase amount of over R276,000.
While WP Motor Sales continues to fight the decision, the case has highlighted the importance of consumer rights and the responsibility of sellers to ensure the vehicles they sell meet the minimum standards of quality and durability — even in the second-hand market.
