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JSE-listed used vehicle buyer and seller WeBuyCars (WBC) has agreed to pay a R2.5 million fine and R3.4 million in \u201cconsumer redress\u201d in terms of a settlement agreement it entered with the National Consumer Commission (NCC).<\/p>\n
The consumer redress relates to WeBuyCars agreeing to refund 31 affected consumers a total of R3 419 971.83.<\/p>\n
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How much WeBuyCars makes on each car it sells
WeBuyCars considering selling new vehicles<\/p>\n
To strengthen consumer protection and enhance service delivery, WeBuyCars has also agreed in terms of the settlement agreement to:<\/p>\n
The settlement agreement follows the NCC receiving complaints from consumers in the past three years that WeBuyCars had failed to provide remedies to consumers based on sale agreements signed between the company and its customers.<\/p>\n
The NCC said on Tuesday it had formed a reasonable suspicion that WeBuyCars\u2019s terms and conditions, particularly in relation to warranties and terms of sale, contravened several provisions of the CPA.<\/p>\n
\nThe NCC investigated the complaints lodged by consumers, and found that the terms and conditions of the sale agreements did indeed contravene the CPA.<\/p>\n<\/blockquote>\n
It said the settlement agreement was referred by the NCC to the National Consumer Tribunal on 3 December and confirmed by the tribunal on Friday, making it a consent order in terms of the National Consumer Act.<\/p>\n
Attempts to obtain comment about the settlement agreement from WeBuyCars on Tuesday were unsuccessful.<\/p>\n
Investigation findings<\/strong><\/p>\n
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CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Acting NCC Commissioner Hardin Ratshisusu on Tuesday welcomed the consent order granted by the tribunal, saying the settlement \u201cconcludes investigations against WeBuyCars on contraventions of the CPA\u201d.<\/p>\n
\u201cWeBuyCars, among other commitments, has agreed to review and amend terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected.<\/p>\n
\n\u201cConsumers that were affected by the conduct will, as part of this settlement, receive redress,\u201d he said.<\/p>\n<\/blockquote>\n
Moneyweb reported in January on comments made by journalist Jonathan Witt of Overton Press about his experience with WeBuyCars, particularly the danger of prospective used vehicle buyers relying on so-called independent vehicle assessment reports compiled by Dekra Automotive when considering purchasing vehicles from WeBuyCars and other used vehicle dealers.<\/p>\n
Witt said the Dekra reports claimed that both vehicles he was interested in were in \u201cgood\u201d or \u201cvery good\u201d condition, with no evidence of damage, faults or repairs, and both were categorised as being in \u2018Platinum\u2019 condition.<\/p>\n
He took down the VIN numbers, did some follow up, and confirmed that both vehicles had been involved in accidents.<\/p>\n
\u201cOne of them had no less than 3 accidents and the other was considered uneconomical to repair after a major accident, and has therefore been rebuilt,\u201d he said.<\/p>\n
\u201cThere was no disclosure of any of this and the argument could be made that such information has been intentionally hidden and the vehicles misrepresented.\u201d<\/p>\n
Listen\/read
Chinese entrants compel WeBuyCars to take \u2018a bit of margin squeeze\u2019
Is WeBuyCars another victim of cheap Chinese vehicles?<\/p>\nThere was an unprecedented response from consumers to Moneyweb\u2019s article, with the majority highlighting the Dekra inspection reports as a problem.<\/p>\n
Moneyweb still receives regular complaints from consumers about vehicles purchased from WeBuyCars.<\/p>\n
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CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Vehicle assessment reports<\/strong><\/p>\n
WeBuyCars responded to Witt\u2019s criticism by stating that the Dekra Used Vehicle Report provides \u201can independent evaluation of a vehicle\u2019s roadworthiness, focusing on aspects such as brake performance, tyre condition, shock absorbers, and diagnostic error codes\u201d, but is not a full mechanical evaluation and does not determine whether a vehicle has been in an accident.<\/p>\n
Dekra Automotive chief operating officer Stefan Bleitner, responding at the time to Witt\u2019s criticism of the Dekra Vehicle Reports, said the company had unfortunately not been given the opportunity to investigate all these reports and assured consumers that \u201cthere are no fraudulent reports being provided to WeBuyCars or any other motor vehicle dealer\u201d.<\/p>\n
Consumer complaints<\/strong><\/p>\n
The NCC confirmed to Moneyweb in February that it had received and considered 46 complaints in its 2024\/25 financial year against WeBuyCars, with consumers making various allegations, but mainly alleging the company had supplied them with defective vehicles.<\/p>\n
Read:
Nine months, and 46 unhappy WeBuyCars customer complaints heard
WeBuyCars plans to provide buyers with mechanical test reports
WeBuyCars\u2019s vehicle assessment reports in the spotlight<\/p>\nThe commission said 23 complaints were referred to the Motor Industry Ombudsman of South Africa (Miosa) and the Provincial Consumer Protection Offices.<\/p>\n
\nIt said 21 complaints were still under consideration, with at least one focusing on cross-cutting concerns on terms and conditions with respect to the insertion of voetstoots-type provisions in sale contracts.<\/p>\n<\/blockquote>\n
One complaint led to the initiation of an investigation by the NCC related to worn tyres and involved the use of a vehicle assessment report compiled by Dekra Automotive, but the commission stressed that it was not specifically investigating vehicle assessment reports compiled by Dekra Automotive \u201cbut these are considered on a case-by-case basis if linked to a complaint\u201d.<\/p>\n
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