The Gauteng Office of Consumer Affairs (GOCA) is concerned that some consumers are not doing necessary due diligence before purchasing second-hand cars. “Buying a second-hand car is cost-effective and can offer you the best value for your money. However, the value you get from the car depends on many factors, such as the condition of the vehicle, its market value and service history,” says Milly Viljoen, the Director for Consumer Education, Awareness and Stakeholder Relations.
Viljoen warns consumers to approach used car dealerships with caution. “Once you’ve decided on which make and model you’re going to buy and have found the one you are after, the checks begin. Consumers must do a needs analysis when buying a used vehicle. Ask yourselves these questions: Am I buying a car for business or personal use? Do I know what type of car matches my lifestyle and budget?” says Viljoen. “Once you have decided, make sure that you request a pre-agreement statement and quotation from car dealerships to compare costs such as delivery fee, roadworthy certificate fees, license and registration fees, and other additional fees.”.
The GOCA has received multiple complaints pertaining to pre-owned vehicle purchases and they all usually have one common denominator: pre-owned car buyers fail to inspect the conditions of the vehicles before purchase. A case in point is the recently resolved complaint where the complainant, Mr. Phumanampi Khumalo, neglected to examine the goods for defaults before transferring an amount of R93 000 into the supplier’s bank account. Upon taking delivery, Mr. Khumalo noticed the defaults the following day after the car’s gears failed to change and, later, the car’s engine seized. After the complainant returned the car and lodged a case with GOCA, the supplier (dealer) refused to refund the complainant. The manager responded to the complainant by advising that “they will not refund nor exchange the car, which was already in their possession”. Following GOCA’s intervention and the resolution of the case, intervened and resolved the case, Mr. Khumalo thanked the Gauteng office of Consumer Affairs for the mediation as he could not have afforded a legal battle with the supplier. “I really appreciate the service from the department of consumer rights protection,” said the relieved complainant.
Furthermore, consumers are warned to strictly buy from a dealership that is reputable and compliant with the Consumer Protection Act (CPA). Consumers can do this by ascertaining with the Motor Industry Ombudsman of South Africa (MIOSA) whether or not the dealership they are approaching is reputable and complies with the CPA. According to MIOSA’s report, Gauteng could be a hotspot for non-compliant dealerships as many of the dealerships are not registered, especially in Johannesburg South.
The Gauteng Office of Consumer Affairs advises consumers to make sure their rights are protected and respected by exercising the following tips when buying a used car:
· Ask for a Second-Hand Goods Act certificate. Used car dealerships must display a valid Second-Hand Goods Act certificate to show that they are certified/accredited to sell used vehicles. The certificate must be displayed, and it is valid for 5 years, so the certificate is obtained from the dealer’s local SAPS. Consumers must check with SAPS to confirm the validity and or renewal interval of the Second-Hand Goods Act certificate.
· Inspect the condition of the engine. The engine is the most essential part that every buyer must check before buying a used car. It plays an essential role in the running and overall performance of a vehicle. Check the following:
Ø Starting problems. Delay in starting of the engine is a common problem in used cars.
Ø Check for head gasket and oil leaks,
Ø The car has a noticeable power loss.
Ø The acceleration of the car seems slow and noisy.
Ø The car doesn’t easily maintain high speed.
Ø There is smoke coming from the exhaust.
Ø There is an engine fault light on the dashboard.
· Insist on a current Roadworthy certificate, which is valid for 60 days and inspect the service history.
· Check the Service history. This will tell you a lot about the vehicle you are intending to buy. Has the car been maintained regularly? Did the previous owner use a recognised service centre? Has the vehicle been serviced as often as it should have? Has its handbook been stamped at an authorised workshop?
· Check the odometer reading in kilometres. Generally, higher readouts mean the car has had a long, hard life. A high odometer reading is an indicator that the car should be avoided. Likewise, an older car with low mileage should be viewed with suspicion.
· Read and understand all the terms and conditions before signing any sale agreement. Know and understand your rights and responsibilities before you make any purchase. Do not sign until you are sure. Demand contracts/agreements that are simple easily understood and in plain language.
· Lodge a complaint if you are not satisfied with the products and services received. Complain to the car dealership manager or person in control of the business where you purchased the vehicle. If the matter is not resolved, then lodge a complaint to The Motor Industry Ombudsman of South Africa (MIOSA) at info@miosa.co.za.
· Alternatively, the complaint can be lodged at the Gauteng Office of Consumer Affairs on 011 355 8006 or at consumer@gauteng.gov.za. Consumers can also visit our head office or one of our regional offices in Gauteng.
