- Consumer Protection Act (CPA) Overview
The CPA is designed to protect consumers against unfair practices, ensure product quality, and promote fair, accessible, and sustainable market practices. It applies to transactions between suppliers and consumers, including motor vehicle sales.
- Financing of Extras and Accessories
When financing extras and accessories on motor vehicles, the CPA ensures that:
- Disclosure of Costs: Dealers must provide a clear breakdown of all costs associated with the vehicle, including the costs of any extras and accessories (e.g., leather seats, sound systems, or tow bars).
- Informed Consent: Consumers must be informed and agree to the inclusion of extras in their financing agreement. Adding extras without the consumer’s consent or knowledge is prohibited.
- Right to Choose: Consumers cannot be forced to purchase specific extras as a condition for financing. For example, a dealer cannot insist on bundling a maintenance plan or extended warranty unless the consumer agrees.
- Quality and Warranty Protections
- Fit for Purpose: Any accessories or extras must meet the agreed-upon specifications and be fit for their intended purpose. For example, a GPS system must function as advertised.
- Implied Warranty: The CPA provides an implied warranty of six months on any goods sold, including accessories. If an accessory is defective, the consumer has the right to repair, replacement, or refund within this period.
- Unfair Practices
- Misrepresentation: Dealers must not mislead consumers about the necessity, benefits, or costs of extras. For example, claiming that a sunroof is essential for vehicle safety would be a violation.
- Overcharging: The CPA protects against hidden fees or inflated prices for accessories, ensuring transparency in the pricing.
- Financing Agreement Regulations
Under the National Credit Act (NCA), which works alongside the CPA:
- Credit Agreement Disclosure: Financing agreements must disclose the interest rate, repayment terms, and all fees, including those for extras and accessories.
- Affordability Assessment: The dealer or financier must assess whether the consumer can afford the total cost, including financed extras.
- Consumer Rights
Consumers have the right to:
- Cancel Transactions: Within five business days for direct marketing sales (cooling-off period).
- Repair or Replace Faulty Items: As per the CPA’s provisions.
- Return Faulty Extras: If accessories do not perform as expected or are defective.
