What the WeBuyCars Consent Order Teaches Us About Consumer Rights in South Africa’s Pre-Owned Vehicle Market

In December 2025, the National Consumer Commission (“NCC”) concluded a high-profile enforcement action against We Buy Cars Holdings Ltd (“WeBuyCars” or “WBC”), one of South Africa’s largest pre-owned motor vehicle resellers. The matter resulted in a consent order, confirmed by the National Consumer Tribunal, in terms of which WeBuyCars agreed to pay an administrative fine of R2.5 million and to refund approximately R3.42 million to affected consumers.

This enforcement action highlights the increasing level of regulatory scrutiny in South Africa’s second-hand vehicle market, a sector that continues to attract a high number of consumer complaints, particularly relating to defective vehicles and unfair contractual terms.

The NCC’s investigation was launched after receiving numerous complaints from consumers who alleged that certain terms in WeBuyCars’ sale agreements were inconsistent with the rights and remedies provided under the Consumer Protection Act, No. 68 of 2008 (“CPA”), especially in relation to defects that arise within six months of purchasing a pre-owned vehicle from a dealer.

Following constructive engagement between the NCC and WeBuyCars, the settlement agreement was confirmed by the National Consumer Tribunal on 19 December 2025, making it a consent order in terms of section 74(1) of the CPA. Importantly, this consent order carries the same legal force as a court judgment.

In terms of the consent order, WeBuyCars agreed to:

• Pay an administrative fine of R2 500 000;

• Refund a total of R3 419 971,83 to 31 affected consumers;

• Revise its standard terms and conditions to ensure full compliance with the CPA;

• Implement a Consumer Awareness Programme aimed at educating consumers on their rights and obligations when purchasing pre-owned vehicles, as well as the supplier’s obligations under the CPA; and

• Create 300 job opportunities over a period of five years, in addition to existing planned employment opportunities, to strengthen customer service capacity and improve the overall consumer experience.

Why this matters for consumers and suppliers

The WeBuyCars settlement points to broader compliance concerns in South Africa’s used-car market, which remains one of the sectors generating the highest number of complaints received by the NCC. Common complaints include undisclosed defects, refusals to repair or refund vehicles, and contractual clauses that attempt to limit consumers’ statutory rights.

Regulators have made it clear that they will not tolerate attempts to circumvent the CPA through contractual wording, particularly in industries where suppliers typically have far more information about the product than consumers.

Consumer rights under the CPA

Pre-owned vehicles can be unpredictable, especially when it comes to hidden or undisclosed defects. The CPA provides important protections under sections 55 and 56, including:

• The CPA applies when a vehicle is purchased from a dealership selling vehicles in the ordinary course of business. Private sales fall outside the CPA and are governed by common law.

• Section 55 requires that goods, including second-hand vehicles, be reasonably fit for purpose, of acceptable quality, in proper working order, and free from defects, taking into account factors such as age, mileage, and condition.

• Section 56 provides an implied six-month warranty of quality, allowing consumers to return defective goods within six months and choose a repair, replacement, or refund. If a repaired defect reoccurs within three months, the supplier must refund or replace the vehicle and may not insist on further repairs.

• As a result of this implied warranty, dealers can no longer rely on “voetstoots” or “as-is” clauses in CPA-governed sales. Such clauses remain relevant only in private sales under common law.

What to do if you bought a defective vehicle

If you believe you have purchased a defective pre-owned vehicle:

1. Document all defects and keep records of all communication with the seller.

2. Notify the seller promptly, whether a dealer or private seller.

3. Request a remedy (repair, replacement, or refund) where the CPA applies.

4. Follow the CPA dispute resolution process, including lodging a complaint with MIOSA, approaching the NCC, or referring the matter to the National Consumer Tribunal or a Consumer Court.

5. Seek legal advice from an attorney specialising in consumer law if the issue persists.

Final takeaway

The WeBuyCars consent order is a clear reminder that consumer rights under the CPA are non-negotiable. Large and sophisticated suppliers will be held accountable for systemic non-compliance. For consumers, the matter reaffirms the availability of strong statutory remedies when purchasing defective pre-owned vehicles. For suppliers, it underscores the importance of compliant contracting, transparent disclosure, and strict adherence to the CPA’s mandatory protections.

If you require advice on consumer rights, compliance obligations, or dispute resolution under the CPA, please contact us.