Cape Town dealership to refund R150 000 for defective Toyota Fortuner

A Cape Town-based car dealership will refund a customer R150 000 for a Toyota Fortuner that developed defects on the day it was purchased. 

Shortly after being returned to the consumer following repairs, the same defects persisted, the National Consumer Commission (NCC) said. 

The Competition Tribunal in a statement this week confirmed a settlement made between the NCC and TM Cars (PTY) Ltd, thereby making it an order of the Tribunal. 

“The NCC investigated the consumer’s complaint, which revealed that on May 22, 2022, the consumer purchased a 2013 3.0 D-40 Toyota Fortuner and paid R225 000 to the supplier. 

“On the same day, the vehicle developed certain defects and was returned to the supplier for repairs. 

“However, shortly after being returned to the consumer, the same defects persisted. This contravened section 55(2)(a) -(c) read with section 56(3)(b) of the Consumer Protection Act (CPA),” the NCC said. 

The supplier agreed to refund the consumer R150 000. 

The NCC also welcomed the latest decision by the Tribunal against Kia East Rand (PTY) Ltd. 

The NCC’s investigation revealed that on September 9, 2022, the consumer paid just over R245 000 for a used 2015 Audi A3 vehicle from Kia East Rand (PTY) Ltd. 

On October 19, 2022, the vehicle displayed defects. 

“The consumer informed the supplier that the vehicle was overheating and a ‘Low Engine Pressure’ warning had illuminated on the instrument cluster. The vehicle was collected from the consumer to repair the water pump. However, the defects were not fully resolved as further inspection revealed that the cylinder head gasket had blown,” the NCC said.  

The Tribunal found that the supplier contravened 56(3) of the CPA. 

According to the Tribunal, the overheating of the vehicle and the blowing up of the cylinder head gasket within six months of purchase rendered the vehicle less suitable for the purpose for which it was generally intended. 

The Tribunal further stated that the provisions of section 56(3) oblige a supplier who repairs defective goods to either replace the goods or refund the purchase price.  

Kia East Rand was ordered to refund the consumer the vehicle's purchase price. 

The supplier was further ordered to pay an administrative penalty of R50 000.

The NCC’s Acting Commissioner, Hardin Ratshisusu, said: “The NCC welcomes the two rulings from the (Tribunal), as both send a clear message to suppliers that consumer rights must be protected. The NCC believes that the Tribunal’s decisions will discourage other suppliers from participating in illegal practices.”

Cape Times