What happens if you purchase a vehicle and the car turns out to be a lemon? What are your rights?
Last week, IOL News reported on a story involving Sinegugu Kunene, a 30-year old woman from Durban, who purchased a car that turned out to be an expensive headache.
Kunene celebrated her 30th birthday by purchasing a Hyundai i20 from the Cars R Us dealership for R200,000.
The car has turned out to be a lemon, breaking down just a month after it left the dealership. The car only had 48,000km on the clock.
Standard Bank assistance
The Standard Bank-financed car, which she is still paying a monthly instalment of R3,800 for, remains a broken vehicle.
Kunene said that she is at loggerheads with the dealership and she left the car with them in January after it broke down.
IOL NEWS reached out to Standard Bank in order to see what level of assistance they could give Kunene.
The bank said that they have a Master Sales Agreement (MSA) in place with all its approved dealers.
“The agreement outlines the dealers accountability to sell vehicles that are mechanically sound, as an example. The MDA typically ensures that the bank’s vehicles come with warranties. These warranties cover defects and malfunctions for a specified period. The dealership must provide clear and accurate information about the vehicle, including any known issues,” Standard Bank said.
“The Bank’s rights of enforcement against the dealer under the MSA is only possible if the dealer did breach the provisions of the MSA”.
Standard Bank said that all clients need to first approach the relevant dispute resolution forum for adjudication if the matter cannot be resolved directly with the dealer.
Consumer Protection Act
The MSA also states that legislation such as the Consumer Protection Act has to be abided by.
The bank said that aggrieved customers should report the matter to the National Consumer Tribunal should their rights as a consumer be infringed upon.
Standard Bank also noted that consumers are entitled to goods that are safe, of good quality, and fit for their intended purpose.
“If goods are defective or services are unsatisfactory, consumers can request repairs, replacements, or refunds.Traders must address complaints promptly and fairly,” the bank said.
“Complaint of this nature can be directed to the Tribunal. The motor vehicle industry also has a very active Ombud. Consumers are also encouraged to direct their complaints and issues to this body in order to get a ruling,” Standard Bank added.
Six month period
According to Auto Trader, if you have purchased a vehicle from a dealership that turns out to be lemon, according to Section 56(2) of the CPA, the consumer has the right to return a vehicle to a seller within a six month period, under certain conditions.
“However, the CPA only applies to suppliers who sell cars during their ordinary course of business and not to private sales between individuals,” Auto Trader noted.
The car dealer said that to initiate a return, there has to be a proven defect.
If a customer can prove that the vehicle they were sold was not fit for its intended purpose when it was bought, the consumer has a leg to stand on to demand a repair, replacement or refund, but only if the customer can provide the evidence.
“However, this provision does not apply if the consumer knowingly accepted the goods in their existing condition,” Auto Trader added.
IOL BUSINESS