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Banks held liable for ‘lemon’ vehicles in landmark court ruling | SA News

Neelam Rahim | neelam@radioislam.co.za
3-minute read | 17 December 2025

📸 Justice serves: Banks now liable for defective vehicles they finance, giving consumers the power to claim what’s rightfully theirs.

Urgent shifts in accountability are expected across South Africa’s automotive and finance sectors following a landmark Supreme Court of Appeal (SCA) ruling that now holds banks directly liable for defective vehicles they finance.

The judgment, described as groundbreaking for consumers, confirms that banks are not merely credit providers but are legally regarded as suppliers when financing vehicles under credit agreements. This means consumers can exercise their full rights against…

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