JOHANNESBURG, Gauteng — The Automobile Association (AA) is raising a serious alarm over growing vehicle misrepresentation in the South African motor industry. According to AA CEO Bobby Ramagwede, consumers are increasingly facing deceptive practices, ranging from cars advertised with non-existent features to brand-new vehicles developing severe mechanical failures shortly after purchase.
Buying a car remains one of the most significant financial commitments for South Africans, yet the market is seeing a sharp rise in consumer grievances. Last year alone, more than 11,000 formal complaints were lodged with the Motor Industry Ombudsman of South Africa (MIOSA). These complaints span a wide array of issues, including vehicles advertised with features they allegedly lack, used cars developing serious mechanical problems days after purchase, and consumers being forced to continue paying rentals on vehicles that do not move.
Ramagwede notes that trust in the automotive market has significantly decayed. While slight misrepresentations are more prevalent in the secondhand market, reliability and general safety issues are increasingly creeping into the brand-new, entry-level vehicle segment. Due to low regulatory standards, some manufacturers find it acceptable to build vehicles to only the minimum required specifications, despite having the capability to produce safer alternatives. Furthermore, new market entrants are releasing untested products, effectively making early buyers “guinea pigs.” This trend has led to premature engine failures, chassis bending, and warranty disputes that typically should not arise until years down the line, now occurring within the first 12 months of ownership.
Consumers are also being warned to be highly skeptical of warranties that sound “too good to be true.” Ramagwede highlighted bogus conditions, such as million-kilometer guarantees tied exclusively to the first owner. He emphasized that a product should be warranted, not the owner, and such restrictive terms often signal underlying problems with the vehicle.
Addressing the topic of vehicle recalls, Ramagwede clarified that recalls are not inherently an indicator of poor workmanship. Instead, they demonstrate that a manufacturer is actively monitoring product performance and taking corrective action. He cited a recent Ford recall of approximately 2,000 vehicles out of a batch of over 20,000 (about 10%) as an example of proactive manufacturer responsibility. However, he warned that silence from other manufacturers is a major red flag.
The most critical recall failure remains the Takata airbag crisis, affecting between one and 1.5 million vehicles on South African roads manufactured between 2000 and 2022. These defective airbags risk spontaneous deployment, firing dangerous metal shrapnel at occupants. Motorists are strongly urged to visit their brand’s dealership immediately for a free recall check, and are cautioned not to sign any Offer to Purchase (OTP) documents prematurely if they feel uncertain about a deal.
To combat these systemic issues, the AA advises consumers to become more savvy and proactive. Buyers of secondhand vehicles should insist on an independent AA assessment report for peace of mind. For new cars, buyers must demand to see the vehicle’s safety rating—such as a Global NCAP, Euro NCAP, or ANCAP rating—in writing. If a dealer cannot provide this documentation, buyers should walk away and choose a different vehicle.
The AA also highlighted the dangers of balloon payment financing structures. In these arrangements, a carved-out portion of the loan is set aside and continues to accrue interest while the buyer services the balance. This can trap buyers in a debt spiral when the loan matures, especially if the vehicle’s residual value is lower than the outstanding amount, forcing them to roll the difference into a new car loan. Additionally, comprehensive insurance is strongly recommended over basic third-party policies to mitigate the very real risks of theft and accident damage in South Africa.
Recent consumer feedback indicates that 48% of new car buyers have experienced sales misrepresentation, though 29% reported their purchases were entirely problem-free. While some motorists have expressed frustration over dismissed complaints at regulatory bodies, Ramagwede reassured the public that the AA actively lobbies the government and represents both its members and the general public in resolving vehicle-related disputes. Consumers are encouraged to reach out to the AA for guidance and contract review before finalizing any vehicle purchase.
