In South Africa, purchasing a motor vehicle is a significant financial decision. It is therefore essential that purchasers receive honest and complete information regarding the vehicle’s condition before making a decision. Unfortunately, circumstances still arise where purchasers are misled into buying defective vehicles due to false or incomplete representations made by sellers.
The recent judgment in Meiring v RC Auto and Others (4048/2024) [2025] (“Meiring”) serves as a timely reminder of the legal protections available to purchasers in such situations.
Facts: Meiring v RC Auto
On 3 November 2023, the purchaser, Mr Meiring, purchased a 3.2 Double Cab Ford Ranger Wildtrack for R360,000 in cash. The seller, RC Auto, represented that the vehicle:
- Had a full-service record.
- Was accident-free.
- Had only minor issues with the tyre sensor and pre-collision sensor, which would be repaired at the seller’s expense.
However, shortly after taking possession of the vehicle, the purchaser discovered multiple serious defects:
- The rear passenger door was difficult to operate.
- The vehicle swerved and pulled to the side when braking or driving.
- The sensors remained non-functional.
On 20 November 2023, the vehicle was taken to a Ford dealership, Human Auto, for inspection. A report issued the following day revealed that:
- The service history was incomplete.
- The vehicle had previously been involved in a serious accident.
- The sensors were still defective (after the seller was given the opportunity to fix the sensors).
The Findings of the Court
The court held that the purchaser was entitled to cancel the contract and claim restitution based on misrepresentation. The court confirmed the well-established legal principle that:
“A party induced to conclude a contract by misrepresentation may cancel the contract and claim restitution, provided the misrepresentation was material, false, and intended to induce the contract.”
In this case:
- The seller made representations regarding the condition of the vehicle.
- These representations were later proven to be false.
- The falsehoods were material and induced the purchaser to conclude the contract.
Further, the seller failed to disclose material information, including that the vehicle had been in a serious accident and that the service history was not complete.
As a result, the court ruled in favour of the purchaser, allowing the oral contract of sale to be cancelled and ordering restitution, effectively putting the parties back into the position they were in before the sale.
Your Rights as a Purchaser of a Defective Vehicle
If you have purchased a vehicle and later discovered that:
- The seller made false or misleading representations;
- The seller failed to disclose important defects; and
- These facts would have influenced your decision to purchase the vehicle, you may have the legal right to cancel the contract and claim restitution.
This is grounded in contract law principles relating to misrepresentation and nondisclosure. But depending on the circumstances, you may also rely on consumer protection legislation.
The Consumer Protection Act (CPA) [ALTERNATIVE REMEDY]
Where the sale falls under the Consumer Protection Act 68 of 2008, further remedies may apply. The CPA provides that all goods sold must be:
- Of good quality,
- In proper working condition, and
- Fit for their intended purpose.
If the vehicle fails to meet these standards due to defects, the buyer may have the right to demand within six months of the conclusion of the contract:
- Repair of the defects.
- Replacement of the vehicle.
- A refund.
If you find yourself in a similar situation, the first step is to consult with expert legal practitioners. Please feel free to contact us or book a consultation.
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.