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Six dealerships in hot water with the consumer commission

21st August 2024

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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The National Consumer Commission (NCC) has referred six car dealerships to the National Consumer Tribunal (tribunal) for adjudication.

The NCC received complaints from consumers alleging that these suppliers have contravened the provisions of the Consumer Protection Act (CPA).

The NCC investigated complaints against Autoview Pre-Owned, in Boksburg, Gauteng; Cederquist Trade Transmission (CTT), in Bellville, in the Western Cape; Myaa Auto, in Cape Town, in the Western Cape; Super-Tech-Motor Holding, trading as BMW, in East London, in the Eastern Cape; Avura Motors, trading as Avura Executive Motors in Rustenburg, in the North West, as well as Plett Motors, in Plettenberg Bay, in the Western Cape.

The NCC received and investigated two complaints against Autoview Pre-Owned alleging that the dealership contravened various sections of the CPA.

The NCC says it investigation showed that the first complainant purchased a 2010 BMW X3 from the supplier for R240 840, however, within six months of delivery, the vehicle appeared defective.

Upon inspection, it was discovered that the gearbox was faulty. The quotation to repair the gearbox was R90 198.89.

Autoview Pre-Owned refused to replace the gearbox, says the NCC.

The second complainant purchased a Jeep Cherokee for R196 850, and within two months of delivery, the vehicle displayed defects.

Again, Autoview Pre-Owned refused to repair the defects.

By refusing to repair both vehicles, the dealership contravened sections 56(2), read with section 55(2) of the CPA, notes the NCC.

With Avura Motors, the NCC’s investigation showed that a consumer purchased a vehicle for R288 577.50. Within 28 days of delivery, the vehicle started giving trouble.

The consumer approached Avura Motors to repair the vehicle.

Avura Motors refused to repair the vehicle, says the NCC.

By refusing to repair the vehicle, the supplier contravened section 56(2) of the CPA.

In the matter regarding CTT, the NCC’s investigation shows that the consumer entered into a transaction with the company for the repair of a vehicle’s transmission and was quoted an amount of R35 024.69.

On June 22, 2021, CTT completed the repairs, and the consumer collected the vehicle.

However, on June 25 and 29, the consumer returned to CTT as the vehicle was still faulty.

Section 54 of the CPA gives consumers the right to demand quality service, says the NCC. If the supplier fails to perform a service in a manner and quality as expected by the consumer, the supplier must refund the consumer a reasonable portion of the price paid for the service performed.

The investigation into Plett Motor Services shows that the consumer purchased a VW Beetle for R70 000 from the dealership.

However, the vehicle broke down on the day of collection.

The consumer elected for the vehicle to be repaired, and this was done.

However, upon collection, the consumer discovered that the vehicle was in no condition to be driven, and informed the supplier of their intention to cancel the deal.

Plett Motor Services refuses to cancel the transaction, thus contravening section 56(3) of the CPA.

The NCC also investigated a complaint against Super-Tech-Motor Holding, trading as BMW.

The investigation revealed that the consumer took their vehicle to the dealership for repairs.

Upon collection, the consumer drove a few kilometres before experiencing the same problem.

The consumer requested a refund of the amount paid to repair the vehicle. The supplier refused, thus contravening section 54(2) of the CPA, says the NCC.

In the sixth matter, a consumer purchased a vehicle from Myaa Auto, discovering defects the following day.

The consumer informed the dealership.

The NCC’s investigation shows that the built-in system interface (BSI) and the gearbox were faulty.

The consumer contacted the dealership to cancel the transaction and requested a refund, but the dealership refused.

The refusal to cancel the transaction contravened section 56(2) of the CPA.

The NCC says it has referred all six of these matters to the tribunal seeking redress for each consumer, and an administrative penalty of 10% of each dealership’s yearly turnover, or R1-million, whichever is greater.

The commission is also asking the tribunal to declare each supplier’s conduct as prohibited.

 

Edited by Creamer Media Reporter

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