WesBank defeated in court by family-owned dealership

WesBank has failed in its bid to recover R1.36 million from a motor dealer after a customer made three payments on a new Ford Ranger before disappearing with the vehicle. The bank argued that Your Car Guy, a Gqeberha-based car dealer, had breached several conditions of its dealer agreement. The Eastern Cape High Court however found that although breaches had occurred, WesBank’s loss was caused by the customer’s fraud and not by the dealer’s contractual failures.

The buyer, identified in the judgment as Mr Rocha, purchased the Ford Ranger in June 2023 after being approved for finance by the bank. He made three payments totalling nearly R81 000 on the instalment sale and then disappeared with the vehicle, making no further payments. Rather than pursuing Rocha for the outstanding amount, WesBank sued Your Car Guy and two sureties for R1.36 million.

This was essentially the amount the bank had paid the dealer for the vehicle. WesBank sought repayment of the money without having to return the vehicle, which it said it had been unable to recover. Your Car Guy, a well-known family-owned business in Gqeberha, denied liability.

Judge Murray Lowe of the Eastern Cape High Court dismissed WesBank’s claims and ordered it to pay the dealer’s legal costs. Arguments WesBank argued that Your Car Guy had breached the Master Sale and Representation Agreement (MSA), which governs vehicle transactions between the bank and the dealership, as well as the accompanying Dealer Approval Letter. The court found that Your Car Guy had breached the agreements in several respects.

At the relevant time, the vehicle was not part of its dealer stock, had not been paid for in full and was not owned by the dealership. Your Car Guy had also failed to disclose all the relevant circumstances surrounding the vehicle. The court found that none of these irregularities caused Rocha to disappear with the Ford Ranger.

The loss resulted from Rocha’s fraudulent scheme and could not be attributed to the dealership’s contractual breaches. It was WesBank that assessed Rocha’s creditworthiness and ultimately approved the finance. Vindicated “This case was never just about one vehicle,” said Ray Neethling, owner of Your Car Guy, following the judgment.