Gauteng dealership ordered to refund man over R207,000 after selling defective used Mahindra SUV

The National Consumer Tribunal has ordered Rifle Range Car Sales, a dealership in Johannesburg, to refund a Mpumalanga man over R207,000 after finding that the dealership sold him a defective Mahindra SUV.

The ruling follows an application by Jacobus Johannes Holl, who represented himself with assistance from his wife.

Holl bought a used Mahindra XUV 500 seven-seater from Rifle Range Car Sales in May 2023 for just over R207,000. Prior to purchase, the dealership told him that the vehicle’s clutch required repair and assured him that the vehicle was in good condition and would not be financed “if it were a disaster”.

Holl and his wife test-drove the car and noted cosmetic issues and clutch problems, which they were told would be repaired before delivery. Later, the dealership confirmed that the clutch had been fixed and that the vehicle was free of defects.

However, on his drive back from Johannesburg to Nelspruit after collecting the car, Holl noticed multiple problems, including malfunctioning dashboard gauges, warning lights, a defective cruise control system, wheel alignment issues, and faults with door locks and keys.

Acting on the dealership’s instruction, Holl took the vehicle to Volvo Auto Baltic in Nelspruit for inspection. The workshop identified a host of serious mechanical and electrical issues, including a leaking transfer case, a non-functioning all-wheel drive system, dirty coolant with no antifreeze, vibration caused by excessive play in the centre prop shaft bearing, oil leaks, a faulty cruise control system and, crucially, a defective computer box.

Although Rifle Range Car Sales initially authorised certain repairs, it later instructed Volvo to halt further work. The Motor Industry Ombudsman of South Africa (MIOSA) subsequently recommended that the dealership collect the vehicle at its own risk and cost and resolve all outstanding issues free of charge. This recommendation was ignored.

Holl then approached the National Consumer Commission (NCC), which issued a notice of non-referral in December 2024, stating that the six-month warranty period had expired. Holl thereafter applied directly to the National Consumer Tribunal, which granted leave to hear the matter.

Through its legal representative, Rifle Range Car Sales argued that Holl had signed a waiver acknowledging the wear and tear associated with a used vehicle and had accepted the risk of future mechanical problems. The dealership also blamed Holl for not taking out mechanical breakdown insurance and maintained that the vehicle had been sold “voetstoots”.

However, the tribunal rejected this argument, stating that suppliers cannot contract out of the implied warranty provided for under Section 56 of the Consumer Protection Act (CPA). It held that clauses in the purchase agreement purporting to exempt the dealership from liability were in direct conflict with the Act.

While the tribunal found that some of Holl’s complaints were minor, it ruled that several defects were material. These included the leaking transfer case, the defective computer box and the non-functioning all-wheel drive system – features that rendered the vehicle unsuitable for its intended purpose.

“The first respondent attended to some but not all the repairs and therefore contravened Sections 56(2) and 56(3) of the CPA,” the tribunal ruled, declaring the dealership’s conduct prohibited.

As a result, Rifle Range Car Sales has been ordered to refund the full purchase price of R207,059.43 within five days and to collect the vehicle from Holl at its own cost and risk once payment has been made.

*Note: Rifle Range Car Sales is a not a Mahindra dealership, but rather a used vehicle dealership that is not affiliated with Mahindra.

sinenhlanhla.masilela@iol.co.za

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