Trouble with a car dealer: what to do?

Johannesburg – Mike, a Fin24.com user, sent the following question:

I purchased a car from a second-hand dealer in January.

I paid in a substantial deposit to the dealer (50%) and had the balance financed through Nedbank.

When I took delivery of the car, I discovered that there were problems with the car and that it had been involved in an accident (which the dealer assured me it had not).

The car was then left with the dealer for over a month, but I still have problems with the car.

My question is whether I can cancel my contract for the car, return it to the dealer and be refunded in full. Or would I have to go to the bank because my car is financed through them?

Coen Gouws, senior adjudicator in the office of the Motor Industry Ombudsman, responded:

When a pre-owned vehicle is purchased, there is normally a dealer warranty and the dealer is obliged to repair the vehicle under the terms, conditions and parameters of this warranty. It must, however, be noted that the cover offered in this warranty is limited in terms of time and kilometers and certain defects are excluded.

Insofar as cancelling the contract is concerned, this is a matter that must be discussed between the owner, dealer and the financial institution. One must realise that there will be costs involved for both parties, but the final decision rests upon the parties mentioned earlier.

Mike can submit an application for assistance to the Ombudsman’s office for further investigation.