A 27-year-old Gauteng woman is seeking a full refund or vehicle replacement after her new R923,000 Mercedes-Benz CLA 200 reportedly malfunctioned 37 days after purchase. The vehicle allegedly reversed while in drive during a trip to Mpumalanga. Mercedes-Benz South Africa and the financier, Absa, maintain that diagnostic procedures are required under the Consumer Protection Act (CPA) before any remedy is determined.
How does the Consumer Protection Act protect new car buyers?
The Consumer Protection Act (CPA) grants consumers the right to return goods that fail to meet reasonable quality standards within the first six months of delivery. According to Absa, once a dealer confirms a defect, the buyer holds the legal right to choose between a repair, a replacement, or a full refund. However, legal experts note that the manufacturer must first be afforded the opportunity to investigate the vehicle to verify if the defect exists. The current dispute hinges on the customer’s refusal to sign a job card, which she fears could be interpreted as consent to accept a repair rather than a refund.
Under South African law, a “job card” is a formal agreement between a customer and a repair facility. Signing it authorizes the dealership to perform diagnostic work, but it does not automatically waive a consumer’s right to request a refund or replacement if a major defect is later confirmed.
Why are disputes over vehicle diagnostics common?
Disputes often arise when manufacturers and consumers disagree on the nature of a mechanical failure. In this case, the owner reports the car reversed while in “Drive,” while a letter from the dealership dated May 28, 2026, attributes the issue to a fault code in the transmission control unit that prevented the car from pulling away on an incline. This discrepancy in technical explanation—software update versus gearbox failure—has fueled the customer’s lack of trust in the repair process. Mercedes-Benz South Africa has cited the Protection of Personal Information Act (POPIA) as a reason for not disclosing further technical details publicly.
What steps should buyers take when a new car fails?
Industry standards suggest that buyers maintain a clear paper trail of all communications with both the dealership and the financial institution. According to Absa, the bank does not unilaterally cancel instalment sale agreements based on alleged defects until the manufacturer has completed an assessment. For consumers facing similar issues, the following steps are recommended:
- Document everything: Keep copies of all emails, letters, and diagnostic reports.
- Formalize the complaint: If the dealership is unresponsive, escalate the matter to the manufacturer’s head office.
- Seek independent mediation: The Motor Industry Ombudsman of South Africa (MIOSA) provides a platform for resolving disputes that reach a deadlock.
What happens when a bank and a manufacturer disagree?
The role of the financier, in this case, Absa, is to manage the credit agreement while the manufacturer manages the warranty and mechanical integrity. While the customer alleged that Absa was “complicit” and dismissed the issue as minor, the bank stated it never characterized the defect as minor. Instead, the bank clarified that it monitored the situation while waiting for the inspection results. This highlights a common friction point: banks are legally bound by the terms of the credit agreement, while manufacturers are bound by the warranty and the CPA, leaving the consumer to bridge the gap between two separate entities.
Frequently Asked Questions
Can I force a dealership to replace my car immediately?
No. Under the CPA, the dealer is entitled to investigate the vehicle to confirm if a defect exists. You can only demand a replacement or refund once the defect is verified.
What if the manufacturer refuses to provide a report?
If you are denied a formal diagnostic report, you can lodge a formal complaint with the Motor Industry Ombudsman of South Africa (MIOSA) to compel transparency.
Does signing a job card mean I have to accept a repair?
Not necessarily. Signing a job card is usually a prerequisite for a diagnostic test. However, you should explicitly state in writing that the authorization is for diagnostics only and not an agreement to a repair.
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