NSW Australian Consumer Law - Purchased Car Back with Manufacturer - Entitled to Refund?

[Jem]

Hi

We purchased a second-hand Holden vehicle from a dealership on 11/11/2015. It's a 2013 model, still under manufacturer's warranty. After 2 weeks of driving the vehicle, the engine warning light (among others) came on.

The vehicle has now been with the manufacturer since 7/12/2015 - 7 weeks and counting (we still don't have it back and are, of course, still paying it off). Whilst they've provided a loan car (after many arguments), they can't seem to locate or fix the problem causing the engine light to come on.

Are we entitled to a refund under Australian Consumer Law?

Thanks

 

[Sophea]

Hi Jem,

In order to be entitled to a refund under the Australian Consumer Law, you would need to prove that there was a major failure to comply with the guarantees as to acceptable quality or fitness for purpose. A major failure to comply with the consumer guarantees could be for example when a consumer would not have bought the motor vehicle if they had known about the full extent of the problem. Such as where a new car has so many recurring faults that the car has spent more time off the road than on it because several mechanics have been unable to solve the problem.

However, for a second-hand vehicle to have a single fault, I doubt it would amount to a major failure yet. If other issues were to arise with the vehicle perhaps, however if it is within the manufacturers warranty, you should be able to rely on that to have the vehicle fixed free of charge. The ACL also requires that manufacturers honour any warranties provided with vehicles.