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Thread: Advice Needed re:Purchase of a Vehicle from a Dealer that sold on Consignment

  1. #1
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    Advice Needed re:Purchase of a Vehicle from a Dealer that sold on Consignment

    Please, if there is anyone out there that can advise me regarding a vehicle purchase where the vehicle was sold via the dealer that was on consignment, but invoiced by the dealer.

    Thank you ....

    Last edited by Dave A; 24-May-12 at 09:46 AM.

  2. #2
    Diamond Member AndyD's Avatar
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    Hi Heinz, welcome to TFSA.

    This is an open forum so I might suggest you edit your post above to remove the email address otherwise you'll get lots of unwanted spam. It's also nice if questions are aswered in the thread they are asked in, that way others with similar problems in future may benefit from the advice given.
    I am special and so is Vanash.

  3. Thanks given for this post:

    Dave A (24-May-12)

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    Hi Andy,

    Thank you for your response and comments. I however cannot see where / how I can edit my thread and remove my email address.

    Here is my problem:-

    I decided to sell my Colt Rodeo 2.8TDi 4x4 Double Cab (hereafter referred to as “Colt”) and decided to purchase a VW Touareg 4.2 V8 (hereafter referred to as “VW”). My transaction would have to include the dealer accepting my Colt as a trade-in on the VW.

    I searched the internet and came across a vehicle (the VW) advertised on the website for R140 000,00.
    I filled in the online anonymous reply form on the site to enquire and waited for a reply. In the reply form, I specifically mentioned that I had to trade-in and gave full details about my Colt with a selling price of R65 000,00.

    A Mr Hansel Rajab replied to me and said that he was selling privately and couldn’t assist with a trade-in but did mention that the VW was standing at a dealer who was helping him sell the vehicle but at a price of R159 000,00.

    I replied and said that I was still prepared to look at a deal, on condition that the VW was still within the market Trade & Retail prices and that the dealer would look at a trade-in for me. I asked him to forward my details and comments to the dealer.

    The dealer then contacted me sometime after that and said that if the Colt was in the condition that I explained etc. that they would be prepared to consider a mutual deal. We made arrangements to go and meet the dealer so that he can have a look at my Colt and that I could test drive the VW. This happened on Monday, the 7th of May. The dealer did tell me there was a problem with the fuel injectors and that it would have cost him R15 000,00 to fix/replace but that a vehicle repair outlet found out that it was only a “regulator” that needed replacement at a cost of R5000,00. This was done at the dealers cost. This replacement happened prior to me making the enquiry about the vehicle.

    The dealer was happy with my Colt with a few minor body exceptions and said that he would offer me R62 500,00 (or round about there) and I would have to take care of a minor noise coming from the front of the motor and replace the rear right indicator light.

    I had already booked the Colt in for the Wednesday, the 9th of May for these issues to be sorted out. I received my Colt back from Mitsubishi on the 10th with exception to a “singing noise” on the motor. It sounded to me that it was a manifold problem. I returned to the dealer and they agreed to accept the vehicle as is but for R60 000,00 and that they would undertake the repairs of this at their cost.

    I reluctantly agreed as I was already moving out of my budgets that I had calculated. I wanted to confirm with my wife that Thursday night (the 10th of May) and that I would confirm with the dealer early Friday morning if we were to proceed with the transaction. This I did and confirmed that I needed money released to me from an investment account in order to conclude the deal. We agreed that we would talk again the Monday morning, the 14th of May. In the meantime, I asked the dealer to issue me with an invoice, which he did and emailed it to me (invoiced through his dealers name), reflecting the correct amounts etc.
    To confirm, the amounts were:-
    Purchase VW - R158 000,00
    Less Trade-in (Colt) - R 60 000,00
    Amount Due - R 98 000,00

    At a home function on the 12th, a friend of mine had a look at the Colt only to find that there a lose pipe that made the “singing noise” and that was now fixed.

    Come the 14th, my money still had not reflected in my account and we mutually agreed that we would wait to the Tuesday, the 15th.

    The 15th my money was in my account and I proceeded to go to the dealer, together with the original NATIS document for the Colt and all keys etc.

    At the dealer, I handed over all the necessary documents and items for the Colt and made an EFT payment at his premises for the R98 000,00 owed to finalise the transaction.
    I also told them the “singing noise” was now fixed and that they needn’t worry about that cost. I didn’t insist that my trade-in price be increased to R62 500,00 left it as that.

    He handed me the Change of Ownership papers (in Rajab’s name), Roadworthy Certificate, keys etc. and the transaction was now concluded.

    Then the following sequence of events happened:-
    • 15 May : I went to collect my daughter from school in the VW and whilst waiting for her, I had the ignition on (but not the motor) and listened to the radio. When she came out of school, on trying to start the VW, the battery was “dead”. I made arrangements for a jump start
    • On returning home, I placed the battery on a charger and left it for 4 hours. I then proceeded to start the VW and it started
    • 16 May : Wanted to take my daughter to school and then to registered the VW in my name and the battery was “dead” again. I jump started with my wife’s car and proceeded with my plans. Luckily the VW started at the Licensing Dept. and proceeded to go to my closest MIDAS branch to test the battery. The readings were that the battery was faulty and has to be replaced. I contacted the dealer and told him what had happened and that the results from the battery test. He verbally told me that he didn’t know what to do and would have to speak to Hansel Rajab and see if he would carry the cost of the replacement. The dealer also said that “I should remember that the vehicle was sold on consignment”. I left it for a few hours and decided that I couldn’t risk stopping again with a faulty battery and that I would replace the battery at my cost (an amount of R1495,00)
    • 17 May Morning : Whilst driving I felt the VW shudder and thought nothing of as I thought it might have been a little dirt in the petrol tank (the vehicle was empty when I got it and I filled it to start seeing my fuel consumption etc.)
    • 17 May Just before Lunchtime : The vehicle stopped with me and I couldn’t drive at all. There was no fuel getting through to the engine and therefore was not firing. I called the dealer and he said that he would arrange for the dealer to come and tow me in. Whilst I was waiting for the tow truck I emailed the dealer to place our conversation in writing. I also sat with a problem now as I needed a vehicle for the weekend (as I knew the VW would not be fixed in time for the weekend) and I enquired about perhaps using the Colt only to be told that the Colt went in for a service and the mechanics found that the 4x4 was engaging etc. and that I didn’t tell them there was this problem with the Colt etc. I replied and said that for the time that I rode the Colt, I never been off-roading and that I never knew there was this problem. I then suggested that perhaps we should look at reversing the whole transaction : i.e. I take the Colt back and return the VW and I would pay them out the costs to have the Colt repaired and serviced. I was told that the VW was sold on consignment and that the dealer “merely facilitated” the sale of the VW and that they couldn’t take back the VW and reverse the transaction.
    • 23 May : The VW is still in for repairs

    My questions are:-
    1.) Do I have recourse back to the dealer for the repairs until the VW is completely fixed and in 100% running condition
    2.) If the VW is still not fixed to my satisfaction and experience the same problem with the fuel injectors and they refuse to repair any further, what are my rights, keeping in mind that I was invoiced through the dealers books (on their invoice) and the dealer telling me that they sold the vehicle on consignment
    3.) What are all my options including the Colt

    Your reply and further advise would be greatly appreciated.


  5. #4
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    Consignment stock or not, you were invoiced by the dealer, you paid the dealer, the dealer takes responsibility. To the answer to question 1). IMO you have recourse to the dealer for the repairs until it is fixed.this clearly falls under the CPA (consumer protection act).
    The problem is how do you claim or get the dealer to deliver under this act? Dave directed me to the National Consumer Tribunal .The act is so new that we laymen can't interpret what is really required of us & there is more on that website on the Cosumer CREDIT act than the Consumer PROTECTION act.
    i'm hoping some of our "legal" guys will throw some light.

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