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Gauteng dealership fined R50,000 and ordered to refund woman R247,000 for faulty Audi

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A Gauteng dealership has been ordered to refund a client over R245,000 for a faulty Audi which gave her mechanical issues within three months of purchase.

Malekgale Leutle found herself embroiled in an ongoing struggle with Kia East Rand after buying a used 2015 Audi A3 in September 2022.

What began as excitement over a new vehicle quickly transformed into a frustrating saga filled with overheating engines and warning lights.

In October 2022, she reported overheating problems and a concerning “Low Engine Pressure” warning light on the dashboard. Demonstrating a commitment to customer service, Kia East Rand collected the vehicle and promptly replaced the water pump at no cost to Leutle.

However, the repairs didn’t resolve all of Leutle’s concerns. After receiving her vehicle back, the “Low Engine Oil Pressure” warning light still lingered. Once again, the dealership repaired the car and returned it after claiming to have rectified the defect. Nevertheless, her problems persisted; in January 2023, the engine warning light illuminated anew, prompting further intervention.

This time, the dealership had the vehicle partially repaired by Audi, but due to the hefty costs associated with the repairs, Kia East Rand opted instead to send the car to Rotary Turbo Tech. Regrettably, this too proved fruitless, as the issues were left unaddressed.

In February 2023, after numerous attempts for a solution, Leutle made a formal request to the dealership for a cancellation of the transaction—a request that was declined.

Left with no choice, she sought assistance from the National Consumer Commission, which subsequently referred her case to the National Consumer Tribunal.

At the tribunal, the dealership stated that it conducted a 125-point check on the vehicle before delivery, and no defects were detected. The vehicle was then taken to a Dekra Centre, where it passed a roadworthiness test. The Dekra Centre also completed a full condition assessment, and no major issues were detected.

The dealership also mentioned that when Leutle reported that the car was making an unusual noise and smoking excessively, representatives were sent to inspect the vehicle. It was discovered that the oil had been overfilled by two litres. Her brother admitted that he had overfilled the oil and the car was brought back to the dealership on a flat-bed truck.

Moreover, the dealership said the car was repaired at no cost and on each occasion Leutle was provided with a courtesy vehicle.

Looking at the evidence, the tribunal said the overheating and the blowing of the cylinder head gasket within six months of purchase rendered the vehicle less suitable for purpose.

“The vehicle was not of good quality, not in good working order and was not free of defects. Furthermore, the vehicle was not usable and durable for a reasonable period of time, having regard to the use to which it would normally be put and to all the surrounding circumstances of its supply,” said the tribunal.

Furthermore, the tribunal said under the Consumer Protection Act (CPA), suppliers who repair defective goods are obligated to either replace them or refund the purchase price if shortcomings persist after three months of repairs.

“The first respondent (Kia East Rand) was not supposed to repair the vehicle for the second time. It was supposed to offer the complainant (Leutle) a replacement vehicle or a refund. By failing to do so, the first respondent contravened Section 56(3) of the CPA.”

The tribunal found that the dealership contravened Section 56(3) of the CPA and should pay a fine of R50,000 and also refund Leutle.

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