CPA’S done more harm than good

Act heavily weighted in favour of new-car market

AS AN ex usedcar dealer, I would like to express my total disgust at the so-called “Consumer Protection Act” (CPA) which I believe has done more harm to the consumer than good. I say this for the following reasons:

Dealers have been forced to increase the prices on their stock to way above “book” retail in order to protect themselves against possible claims in the first 6 months, thereby negatively impacting on affordability. As a result of this, it is now virtually impossible to obtain bank finance for these used vehicles without putting down a large deposit. (Banks will only go to around 10 percent above book retail, and only if the car has very low km and is in excellent condition).

I have not heard of any cases actually going to court, but it is certain that the legal costs involved would be far higher than if the consumer were to have either sorted the problem out in negotiation with the dealer, or just carried the cost of the repair themselves.

In my view, it would have been far better to leave this industry alone – the ethical dealers would always be reasonable about any patent defects and assist their customers (the standard 1-month or 1 000km warranty with the option to take out a mechanical breakdown insurance policy for the following 12 or 24 months seemed to work well), while the crooked ones out there will still find a way to beat the system at the cost of their customers.

Again the Act is heavily weighted in favour of the new-car market, as their (inflated) prices include at least six months factory warranty hence no effect at all.