Dealership ordered to refund R169 990 after used car’s engine failed

A used car refund ruling is a strong reminder that second-hand buyers have rights too.

A woman bought a car from a dealership for almost R170,000.

Less than four months later, its engine failed.

Now, the Eastern Cape High Court has ordered the dealership to refund her in full, and pay more than R200,000 in storage costs.

WHAT THE COURT ORDERED

The court ordered the dealership to:

• refund the full purchase price of R169,990, without any deduction for the time she’d used the car,
• pay R202,425.80 in storage costs, plus a further R1,200 a month from March 2026 until the date of judgment,
• pay interest on the refund from 28 February 2022,
• and pay her legal costs.

The court found that the dealership had contravened sections 55 and 56 of the Consumer Protection Act (CPA).

WHAT HAPPENED?

The buyer bought the second-hand car, a 2013 model, from the dealership on 21 October 2021.

Less than four months later, the car suffered catastrophic engine failure.

She approached the Motor Industry Ombudsman of South Africa (MIOSA), which recommended on 10 October 2022 that the sale be cancelled and that she receive a partial refund.

The dealership rejected the recommendation, so she took the matter to court.

She argued that the car didn’t meet the standards of quality, working order and durability required by the CPA.

The court agreed, confirming that she was entitled to cancel the sale and receive a full refund.

WHY THE STORAGE BILL WAS SO HIGH

The dealership refused to accept the car’s return.

So the broken car remained in storage in Knysna while the dispute continued, running up costs for years.

The court ordered the dealership to cover those costs.

PART OF A WIDER CRACKDOWN

The ruling comes as the National Consumer Commission (NCC) welcomes a series of court and tribunal rulings against suppliers that breached the CPA, including several car dealerships.

The rulings, handed down between July and October 2026, include orders for refunds and financial penalties.

WHAT THE LAW SAYS ABOUT USED CARS

The CPA applies to second-hand cars bought from dealerships, not just new ones.

• The right to quality goods: Under section 55, you have the right to receive goods that are of good quality, in good working order and free of defects, and that last for a reasonable time.
• The six-month rule: Under section 56, if a defect appears within six months, you can return the car and choose a repair, replacement or refund.
• Repeated defects: If a dealer repairs a defect, and the same problem returns, or a new one appears, within three months of the repair, the dealer must replace the car or refund you.

WHAT TO DO IF YOUR USED CAR BREAKS DOWN

• Contact the dealership in writing straight away, and keep a record of all communication.
• Don’t let the six-month period run out. Report defects as soon as they appear.
• Get an independent inspection report to show what’s wrong with the car.
• Approach the Motor Industry Ombudsman of South Africa if the dealership won’t help.
• Complain to the NCC if the dispute still isn’t resolved.

HAVE YOU EVER HAD PROBLEMS WITH A USED CAR SOON AFTER BUYING IT?