Used car dealers in Egypt have welcomed the Consumer Protection Agency (CPA) decision to regulate the sale of second-hand cars. The agency now requires merchants to attach an approved certificate, describing the complete technical condition of the car in order to preserve the rights of citizens.
Ibrahim Ismail, Executive Director of Cairo’s used car market, said obtaining the certificate before selling used cars to customers is a tool to fight misinformation that occurs in the market.
Ismail said that the report will be a guarantee of the buyer’s right, and make them aware of all the car’s faults. In case any further faults are found, the customer can then take their complaint to the CPA.
He added that the agency would first monitor the nationwide spread of accredited centres, ensuring that they are close to good markets. This will ensure that examinations of vehicles are possible and easy to facilitate, before the law is applied.
Mahmoud Hamada, head of Hammad Motors and head of the used and hybrid sector at the Car Dealers Association, said the CPA decision will eliminate 100% of the sector’s fraud.
Hamada indicated that he relies on approved maintenance centres to inspect cars before completing the purchase, to ensure that the consumer is provided with correct data.
He added that many of the dealers working in the sector work without issuing a report outlining the car’s faults. The CPA step will eliminate the cheating that sometimes takes place in the Egyptian market during the next period.
Acting CPA Head Ahmed Samir Farag said that Egypt’s Consumer Protection Law regulates the sale of all items in the local market, including the sale of used cars, so that the consumer is not deceived.
He said that the amendments to the law have granted a number of advantages when buying a used car, in order to preserve the rights of citizens. The law obligates dealers or sellers to provide the buyer with a technical report of the car’s condition and its defects, with the report issued by a licensed service centre.
Farag said that the amendments include imposing a fine, in the event that the report does not match the condition of the car. The penalties will be a fine of between EGP 10,000 and EGP 500,000, or a fine equivalent to the value of the car, with a commitment to refund the price to the buyer.
A maintenance centre that is found to have issued a misleading report will also be penalised, in accordance with the amendments of the law. It will face closure for a period of six months, alongside the imposition of a fine and compensation for the consumer.
