{"id":12694,"date":"2026-03-02T09:58:28","date_gmt":"2026-03-02T07:58:28","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/law\/?p=12694"},"modified":"2026-03-02T09:58:33","modified_gmt":"2026-03-02T07:58:33","slug":"your-new-cars-a-lemon-heres-how-to-make-lemonade-and-get-your-money-back","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/law\/2026\/your-new-cars-a-lemon-heres-how-to-make-lemonade-and-get-your-money-back\/","title":{"rendered":"Your New Car\u2019s a Lemon: Here\u2019s How to Make Lemonade and Get Your Money Back"},"content":{"rendered":"\n
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\u201cLemon law, noun \u2013 a law that states that you can return a motor vehicle to get it repaired or your money back if the vehicle is no good.\u201d (Oxford Learner\u2019s Dictionaries)<\/p>\n<\/blockquote>\n\n\n\n

The car you just bought on instalment sale turns out to be a complete lemon. But when you return it to the dealership and cancel the sale, the bank still enforces the finance agreement and sues you for damages.<\/p>\n\n\n\n

\u201cSorry to hear about the defects,\u201d says the bank. \u201cBut that\u2019s not our problem. We weren\u2019t the supplier; we just financed the transaction. Your claim is against the dealership. You\u2019re still bound by the instalment sale agreement and must cover our losses.\u201d<\/p>\n\n\n\n

Sued by the bank after buying a dud 4×4<\/h6>\n\n\n\n

A motor dealership in Koster (a small farming town in the North West Province) sold a 5-year-old Ford Ranger 3.2 TDCI 4×4 automatic to a mother, who bought it on behalf of her son with bank financing on an instalment sale basis.<\/p>\n\n\n\n

All pretty standard stuff\u2026 Until, just four days after delivery, the oil cooler and gearbox started giving problems. The son returned it to the dealership, which replaced the gearbox. But then less than two months later, the vehicle overheated. Unsurprisingly the son returned it to the dealership as a dud that he no longer wanted. His mother, as buyer, formally cancelled the agreement with a lawyer\u2019s letter.<\/p>\n\n\n\n

The bank sued her for damages, and while it was successful in the High Court, the SCA (Supreme Court of Appeal) reversed that decision and upheld the buyer\u2019s counterclaim for cancellation of the instalment sale and restitution of everything she had paid the bank. The bank must accordingly refund her the deposit and all the instalments she had paid it, together with interest and costs.<\/p>\n\n\n\n

That outcome, and the SCA\u2019s reasoning in reaching it, hold important lessons for all suppliers of goods of all kinds (not just vehicles), buyers, and banks.<\/p>\n\n\n\n

When you buy a lemon, here\u2019s how to make lemonade<\/h6>\n\n\n\n

The buyer\u2019s success hinged on the Court\u2019s findings that:<\/p>\n\n\n\n