# Regulatory Compliance Category > Consumer Protection Act Forum >  Standard Warranty on Pre Owned Cars

## VanessaVDB

My aunt bought a pre-owned Kia Picanto from a Kia dealer. She took ownership of the vehicle last year in October 2011
Recently she started having problems with the gears, which she received a fine for at a road block for R 1,250 (for not
being roadworthy) It would appear that Kia never put the car trhrough roadworthy before concluding the sale.
She's tried to get them to agree to repair and cover the costs of a new gearbox, but they are refusing to budge, being of the 
opinion that nothing was wrong with the car when she drove it off the showroom floor the day she took ownership. She didn't
take out an extended warranty with Kia, but is there not a standard warranty that would apply in this case being that she
purchased the car from a dealer? Please help

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## Mark Atkinson

I think you're probably out of luck here.

It's your responsibility to ask a Certificate of Roadworthiness (COR) to be obtained prior to sale. If the vehicle is out of its initial warranty period with Kia, then you probably only receive a 30 day warranty from Kia (seems to be standard for pre-owned car) unless you purchased an extended warranty.

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VanessaVDB (26-Jun-12)

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## Dave A

It's been an age since I looked at second hand vehicles from dealers, but the "normal" standard I recall used to be 6 months or 10 000km, whichever was reached first.

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VanessaVDB (26-Jun-12)

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## Mark Atkinson

> It's been an age since I looked at second hand vehicles from dealers, but the "normal" standard I recall used to be 6 months or 10 000km, whichever was reached first.


Interesting. When looking at vehicles a few months back we were offered a max of 3 months, with most being 30 days. 

Either way, it seems she would be out of luck if the vehicle was bought in October.

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VanessaVDB (26-Jun-12)

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## dfsa

I am not so sure she has mutch to go on. After all she was driving the car for more than six Months now. There should have been some sort of warranty. She must look at all the purchase papers she received.

Retailers these Days still think they can just do what they want and get away with it. Go to them again and simply tell them if they don't fix it you will do some social complaints and you will complain to the consumer authorities.

Here is and extract on the consumer law on second hand cars:

1. Disclosure: 
The dealer must disclose any known faults in the vehicle to you and also list what he has done to the vehicle in terms of reconditioning. He must also disclose the year of first registration as well as the code status of the car. i.e. New; Used; Imported; Stolen/Recovered; or Rebuilt. He has to allow you to inspect the vehicle and conduct a road test. The object of this clause is to ensure that the buyer is making an informed choice. The words “Voetstoots” and “As Is” are no longer permitted but of course, older, high mileage cars still need to get sold and these will now be sold as “scrap” but without a roadworthy certificate. If the seller has supplied a roadworthy certificate on such a car, it implies a six month warranty.

2. Wear and Tear:
The buyer will be required to sign that he accepts that he is buying a used vehicle and that it has a level of wear and tear and that it is not expected to perform like a new vehicle. i.e. The buyer will not be able to return the vehicle based on wear and tear complaints.

3. Right to return the vehicle: 
The buyer may return the vehicle to the seller within a 6 month period under certain conditions. This is subject to Section 56 (2) of the Act. Wear and tear is excluded. There has to be a proven defect in the car or the buyer must prove that the vehicle was sold to him which was not fit for the purpose for which he bought it. The onus will be on the buyer to provide evidence of such defect. The dealer will then have the option of repairing, replacing or refunding. It is very important to note that the National Credit Act has to fit into the CPA, so if the car you have bought is under a finance agreement, things will be a lot more complicated. 

Since vehicles are goods which devalue with use, the purchaser will be liable for the usage of the vehicle, plus any damages he has inflicted on it, plus the costs of re-roadworthying the vehicle and getting it back into the dealer’s stock. For those naive buyers who thought they could buy a car from a dealer and hand it back after 6 months and keep going like that forever having a free car, well, sorry, but that is simply not a reality. There is also a certain time frame and a process for dispute resolution which has to be taken into consideration. The Motor Industry has its own Ombudsman to whom all unresolved disputes will end up with. It is expected that the time frame for resolution will be about 3 months. 

In cases where refunds are given on vehicles, the buyer will be responsible for the difference in price attained when the vehicle is resold to a new buyer. These are all items the media have failed to inform the public of. My concern is that this will lead to unrealistic consumer expectations and huge disappointment when the first cases come before the CPA.

4. Cooling off period: 
This is only applicable if the Offer to Purchase was signed at a place other than the seller’s premises or the finance company’s premises. It is also applicable if the vehicle was sold to the client by direct marketing. i.e. If the salesperson called you as a “cold call”.

5. Price:
The price of the vehicle must be fair, reasonable and just. The basic intention of the Act was to protect the poor and the uneducated segment of the population. This would be a very difficult law to apply in practice as in the case of vehicles they are all bought and sold very close to the book values, give or take a percentage for low or high mileage and/or condition.

6. Safe use of the product: 
The client will now be required to sign a declaration whereby he accepts responsibility that a motor vehicle is a dangerous item and he will not be allowed to claim against the seller if he injures himself in using the vehicle after signing such a declaration.

7. The right to Documentation:
Buyers will be entitled to receive copies of all relevant documents relating to the purchase of the vehicle. He will be required to sign receipt of all those documents.

8. Implied 6 month warranty.
The CPA requires the seller to stand good for the reasonable durability of the vehicle for a period of 6 months. This is an implied warranty on defects. It is important to understand the difference between wear and tear and defects. Tyres, exhausts, brakes, clutch, etc, would be wear and tear, whereas a gear suddenly jumping out would be a defect. There is no mention of a mileage limitation. However, again, there are several clauses preventing abuse of this protection. It excludes wear and tear and normal maintenance; as well as misuse or negligence. It also specifies the word “defects”. This implies that the fault should have been (wittingly/or unwittingly) present in the vehicle at the time of delivery. 

The buyer will need to provide proof to the dealer/finance house/Ombudsman of such defect. This is going to be costly and time consuming. The main beneficiaries will no doubt be the legal profession. Many dealers will not sell a car to you, without you purchasing one of the extended warranty products available on the market. It is also important to note that the Act does not require a seller of second hand/used goods to supply those goods with a written warranty. 

Fortunately most dealers do provide a written warranty. In such a case, the warranty might be less than the 6 month stipulated period, or equal to it or even longer than 6 months. The vast majority of dealers will strongly encourage customers to purchase an extended after market warranty. By doing so, it would not in any way, reduce your rights as a consumer.

That covers the basics in terms of buying used vehicles. The wise buyer will carefully study the Act before embarking on a claim as it could end up costing him money to return the goods. Used vehicles are different to a new toaster bought at a supermarket. It is far more complex and hence the reason that the motor industry has been given its own Ombudsman. After all the dust has settled, I believe those dealers with a solid reputation will carry on doing business as before and will not materially be affected by the CPA, but the dubious or dodgy ones will be in for a tough time! The office of the Ombud is fully aware that there will be a certain type of “integrity challenged buyer” looking to take advantage of the Act and the industry has been assured that those types consumers have already been earmarked.

There will be a big increase in paper consumption. Most dealers Offer to Purchase document was a one page affair. It now runs into some 20 pages of terms and conditions, so a lot more forests will fall by the wayside as a by-product of the Act and a lot of lawyers will have lucrative additional work. Mostly when consumers are “the best protected in the world” it comes at a cost as when businesses are forced to close their doors, there will be job losses and tax losses for the state. At the end of the day, the cost of this legislation will be borne (once again) by the consumer.

Given that every single sale of any kind of product, or service, falls under the Act (with the exception of the State itself), the mind boggles at the sheer volume of complaints that will no doubt end op on the CPA’s doorstep. Of greater concern is how adept will the office of the CPA be? The Act itself and its specific conditions were only published two days after the Act came into force. This meant businesses were unable to modify their paperwork and policies in time. I would imagine that many complaints will be rejected in the first six months as the timing was clearly unconstitutional and infringed on the rights of business owners.

Time will tell and no doubt over time only the very worst cases will come before the Ombudsman. In the first week some 4000 complaints were received, of which the majority were against the City of Johannesburg (rates/taxes incorrect accounts) and the cell phone companies.




Here is an extract of the standard consumer law:

•According to Chapter 2, Section 56, a consumer can return goods to a supplier within 6 months of their delivery, if the goods fail to satisfy the agreed standards and requirements (which state that the goods must be in good working order, free of defects etc – see Section 55 for details). This return must take place without penalty and at the supplier’s risk and expense.
•The supplier must either repair or replace the failed, unsafe or defective goods, or refund the consumer.
•If there is a problem with the repaired good within the next 3 months, the supplier must replace it or refund the consumer.
•Chapter 2, Section 20 states that a consumer can return goods to a supplier and receive a full refund within 10 business days if the supplier has delivered: 
◦goods as a result of direct marketing and the consumer has cancelled the agreement during the cooling off period (Read more about cooling off periods here). In this instance, the goods must be returned at the risk and expense of the consumer.
◦goods that the consumer did not have an opportunity to examine before delivery, and has rejected on delivery (Read more about examining goods before purchase here). These goods must be returned at the risk and expense of the supplier.
•However, it is important to note that this does not apply where: 
◦The goods concerned have been disassembled, altered, permanently installed or combined with other goods; or
◦There is a public regulation prohibiting the return of the goods.
•If the goods concerned have been used or need to be repackaged, the supplier may charge the consumer a “reasonable amount” for this inconvenience.

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Dave A (26-Jun-12), VanessaVDB (26-Jun-12)

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## tec0

Always as in *ALWAYS* take your second hand car even a new car to the AA and let them have a good long look! YES IT COST A BIT OF MONEY!!! I know... But imagine the cost she could have avoided! You have 7 working days to cancel the deal so within those 7 days spend the money have the car looked at and confirm that the car is in good condition. If the car is not satisfactory cancel the deal. Just cancel it!!! 

*Don’t listen to "We will fix this or we will fix that" They don’t.* All they care about is to burn trough your 7 days so that you are stuck with the problem. I know this from personal firsthand experience… Once your signature is on that darn piece of paper "And the inspection list is signed by you" and you didn’t do the right thing within those 7 days you will end up with an expensive problem. 

Secondly NEVER SIGN THAT INSPECTION PAPER… Tell them you will have the car inspected first by the AA. If they say the car cannot leave without you signing it drop the deal then and there.

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dfsa (26-Jun-12), VanessaVDB (26-Jun-12)

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## adrianh

How can you drive a car for 6 months and then only discover a problem with the gearbox?

I have never heard of a roadworthy test for the reliability of a gearbox!

How was the car licenced to the owner if it did not go through roadworthy?

Nah, I think you're out of luck on this one. Cars break just like all other things and anyway R 1,250 to repair a gearbox is in real terms not a lot of money - I have to spend R4,600 just to replace a clutch on a 9 year old Opel Corsa and we just spent R 700 on a Uno 1100 clutch kit.

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