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Understanding your rights when a dealership refuses to repair, refund or replace a faulty motor vehicle in Queensland.

Whether you purchase a brand-new or a second-hand car, you expect it to be safe, reliable and fit for its intended purpose.

Unfortunately, some buyers discover serious mechanical problems shortly after purchasing their vehicle. The situation becomes particularly frustrating when the dealership refuses to accept responsibility, repeatedly attempts unsuccessful repairs or insists that the vehicle is no longer covered by warranty.

When buying from a dealership, the Australian consumers have legal protections under the Australian Consumer Law (ACL).

What are your rights when purchasing a defective vehicle?

Under the ACL, both new and used vehicles purchased from motor dealers generally come with consumer guarantees that cannot be contracted out of and operate independently of any manufacturers or dealership provided warranty.

The consumer guarantees dictate that the vehicles must:

• Be of acceptable quality, considering the age, price, mileage and other relevant conditions of the car.

• Be safe, durable and free from defects to the standard a reasonable consumer would expect.

• Be fit for its intended purpose.

• Match its description and any representations made by the seller.

A dealership cannot simply avoid its obligations by claiming that the manufacturer's warranty has expired. Your rights under the ACL usually continue after the expiry of the warranty within a reasonable period of time.

What is considered a major defect?

Not every mechanical problem entitles a consumer to reject a vehicle and demand a refund.

Under the ACL, a major failure may arise where:

• A reasonable consumer would not have purchased the vehicle if they had known about the problem.

• The vehicle is substantially unfit for its normal purpose and cannot easily be repaired within a reasonable time.

• The vehicle is unsafe.

• The vehicle is substantially different from the description provided at the time of purchase.

• Multiple minor defects collectively amount to a major failure.

How do you make a defective motor vehicle claim in QCAT?

QCAT has a specialised jurisdiction for certain motor vehicle disputes involving claims of up to $100,000 for cars bought from motor dealers. Importantly, note that private sales are not covered, as well as usually vehicles purchased from dealers through a consignment arrangement.

How to lodge a defective motor vehicle claim in QCAT

If you have purchased a defective vehicle and the dealer refuses to resolve the problem, the following steps may assist you in preparing your claim.

Step 1: Gather evidence of the defects

It’s best to obtain a defects report from an independent qualified mechanic.

Step 2: Notify the dealership in writing and request a remedy

If your claim concerns a breach of the ACL, you may be able to demand repairs or reject the vehicle and request a full refund. The remedies available will depend on the individual circumstances, the nature of faults, how long the vehicle was owned for and whether any defects may be attributed to your use of the vehicle.

If you are intending to reject the vehicle under the ACL, it is important that you strictly comply with the legislative requirements for a written notice of rejection and that it is addressed to the correct entity.

Step 3: Prepare and lodge your QCAT application

If you do not receive satisfactory remedy from the seller, you may commence a motor vehicle dispute in QCAT using QCAT Form 59 – Application – Motor Vehicle Dispute. Your application will need to be served on the respondent, and you will need to provide evidence of proper service.

Step 4: Prepare for mediation or a hearing

The respondent will usually submit a Response to your Application and QCAT usually appoints an independent mechanic to assess the vehicle and prepare a report for the Tribunal. The costs of the report are usually equally shared by the parties.

Depending on the value and complexity of the claim, QCAT may refer the dispute to mediation, issue directions for evidence or list the matter for a hearing.

Do you need a lawyer to make a QCAT motor vehicle claim?

Although QCAT is designed to provide a more accessible and less formal dispute resolution process than the courts, defective motor vehicle claims can involve complicated legal and technical questions.

Disputes frequently arise about whether a defect existed at the time of purchase, whether it resulted from ordinary wear and tear, whether a repair was adequate and whether the problem constitutes a major failure under the ACL. It is easy to get the required notices wrong as the ACL legislation is quite complex.

How Collett Law Group can help

At Collett Law Group, we assist Queensland consumers and businesses with disputes arising under the Australian Consumer Law, including defective motor vehicle claims.

Whether you have purchased a vehicle that repeatedly breaks down, have been denied warranty repairs or are seeking a refund for a car with serious defects, obtaining legal advice early can help you understand your options and avoid costly mistakes.

We can assess your circumstances, communicate with the dealership on your behalf, assist with preparing your QCAT application and provide legal support throughout the dispute resolution process.

Purchased a faulty vehicle? Contact Collett Law Group to discuss your rights and the steps available to resolve your dispute.