The Supreme Court of Appeal has ruled that banks financing second-hand vehicles in South Africa must bear liability for defects, marking a significant shift in consumer protection. In a case involving a pensioner who bought a faulty Ford Ranger, the court ordered WesBank to repay over R170,000. This judgment emphasizes banks' dual role as credit providers and suppliers.
In 2017, Aletta van Niekerk, a pensioner from Mahikeng, purchased a second-hand 2012 Ford Ranger for her son Gerrie. She paid a R150,000 deposit and financed the balance through WesBank. Just four days later, issues with the car's gearbox emerged, requiring repairs at her expense. Two months on, the vehicle overheated, and motoring expert Sagie Moodley discovered that the dealership had installed an incorrectly sized gearbox during the fix.
The Van Niekerks sought to return the vehicle, cancel the finance agreement, and obtain a refund, notifying both WesBank and the dealer via their attorney. However, debit orders continued, prompting them to reverse the payments with legal help. In 2019, WesBank initiated legal action to recover the outstanding balance. The North West High Court in Mahikeng ruled in WesBank's favor in August 2022, dismissing Van Niekerk's counterclaim on the grounds that she had waived her cancellation rights by allowing repairs.
Van Niekerk appealed to the Supreme Court of Appeal (SCA), which delivered its judgment in December 2025. The SCA held WesBank accountable, ordering repayment of just over R170,000 plus legal costs. The court noted that the bank acted in dual capacities: as supplier and credit provider. This ruling shifts responsibility onto financiers for vehicles they back, particularly when retaining ownership for repossession purposes.
Consumer attorney Trudie Broekmann, who represented Van Niekerk, described the decision as groundbreaking. "The judgment has irrevocable and real groundbreaking changes that it brings into the vehicle finance landscape," she said. Broekmann highlighted potential liabilities for banks in accidents caused by hidden defects. She advised consumers facing issues with financed vehicles to approach the bank directly, possibly with legal or adjudication support, rather than the dealership.