MIOSA cancels sale of Toyota GR Yaris after buyer reports serious defects

The Motor Industry Ombudsman of South Africa (MIOSA) has ordered the cancellation of the sale of a 2021 Toyota GR Yaris after buyer Moksham Soundarajan reported multiple defects shortly after delivery.

The ruling comes after IOL reported that Moksham Soundarajan was unhappy with the R600 000 car he bought in July 2025 from WP Motors dealership in Cape Town.

The R600 000 vehicle, purchased from WP Motors in Cape Town, was found to have worn tyres, a cracked exhaust, and lacked a spare wheel or tyre repair kit. Soundarajan lodged a complaint with MIOSA in August 2025, citing safety concerns after experiencing a strong smell of petrol and exhaust fumes while driving approximately 420 kilometres.

Soundarajan said he had been told by the dealership’s sales executive that the vehicle was fitted with run-flat tyres, making a spare wheel unnecessary. However, no spare wheel or tyre repair kit was supplied with the car.

An independent roadworthy inspection conducted on July 26, 2025, uncovered additional problems. The report found that both front tyres were severely worn on their inner edges and identified a crack in the aftermarket exhaust system.

Compounding the issue, the vehicle had previously been inspected by DEKRA on July 11, 2025, and was issued a roadworthy certificate. DEKRA later acknowledged that the certificate was granted due to human error.

Based on these findings, Soundarajan sought a full cancellation of the transaction and requested reimbursement of his trade-in value, all finance instalments, and insurance premiums paid in connection with the purchase.

WP Motors acknowledged the dispute and said it had initially offered to replace the two front tyres, repair the cracked exhaust, and pay R1 650 to repaint damaged wheel rims. The dealership said these proposals were rejected because Soundarajan insisted on cancelling the deal altogether.

The dealership also explained that, after attorneys became involved, both parties agreed in principle to cancel the sale. WP Motors proposed that the buyer repay the over-allowance of R103,312.52 granted on his trade-in vehicle, while also paying for the use of the vehicle based on the kilometres driven. The dealership further suggested charging R6,500 to collect the vehicle if the buyer did not return it himself.

After reviewing evidence from both parties, MIOSA found that the defects identified in the tyres and exhaust provided reasonable grounds to conclude that the vehicle did not meet the quality standards required under the Consumer Protection Act.

The ombudsman referred to Section 55(2) of the Act, which guarantees that consumers are entitled to receive goods that are of good quality, free from defects, and reasonably suitable for their intended purpose. MIOSA also cited Section 56(2), which allows consumers to return defective goods within six months of delivery at the supplier’s risk and expense.

Although DEKRA admitted that the roadworthy certificate had been issued in error, MIOSA found no evidence that WP Motors knowingly sold the vehicle with a fraudulent or improperly obtained certificate. As a result, no misconduct was attributed to the dealership on that basis.

However, the ombudsman dismissed Soundarajan's allegations. Instead, MIOSA found that once the dealership settled the outstanding finance and the relevant agreements were signed, the trade-in became the property of WP Motors and could be sold lawfully.

In its ruling, MIOSA concluded that the dealership’s offer to cancel the sale was fair and appropriate. The ombudsman formally endorsed the cancellation and ordered the parties to work together to return the vehicle within 15 business days.

MIOSA ruled that the proposed R6 500 collection fee was unlawful because the Consumer Protection Act requires defective goods to be returned at the supplier’s own risk and expense.

The ombudsman also confirmed that the buyer remains responsible for the R103,312.52 over-allowance on his trade-in vehicle, as this amount formed part of the financing structure used to complete the purchase.

In addition, MIOSA stated that WP Motors is entitled to deduct a reasonable amount for the buyer’s use of the vehicle before processing any refund. 

However, MIOSA clarified that claims for reimbursement of monthly finance instalments and insurance premiums fall outside its jurisdiction and would need to be pursued separately if necessary.

Meanwhile, the owner of the dealership, Phillip van der Merwe, confirmed that the car was back in their possession.