In Australia, do consumers have specialized legal protections for purchasing new and pre-owned automobiles?
In Australia, consumers have rights and protections when it comes to buying used cars. The Australian Consumer Law applies nationally, and consumer protection agencies in each state and territory, including Consumer Affairs Victoria, can provide assistance.
Consumer Guarantees for Used Cars
When purchasing a used vehicle, it must be of acceptable quality, fit for any purpose disclosed before the sale, match the description provided or the demonstration model, and have spare parts and repair facilities available. These rights also apply to new cars, regardless of the type of warranty you have.
In Victoria, used cars less than 10 years old that have travelled less than 160,000km are covered by a statutory warranty for three months or 5,000km (whichever occurs first). All new cars must come with a manufacturer's warranty that covers any faults and defects.
Dealer Obligations and Solutions
If a used vehicle is demonstrably faulty and not meeting consumer guarantees, the business that sold it may be required to offer a solution. This solution could be a repair, replacement, or refund. If the problem is minor, a free repair may be required. If the issue is major, a repair, replacement, or refund can be requested. The replacement must be of a similar type and value, as reasonably available. Refunds should be the same amount paid and in the same form.
The dealer or retailer must not tell you to take the problem to the manufacturer or importer. If the dealer doesn't respond or doesn't recognize consumer rights, complaints can be made to Consumer Affairs Victoria (CAV).
Preventing Purchase of Damaged Vehicles
Consumers can prevent the purchase of vehicles with undisclosed damage by checking the vehicle's history reports, which include accident and damage records, through services like the Personal Property Securities Register (PPSR) or equivalent state services. The State or Territory motor vehicle registration and licensing authority, such as VicRoads in Victoria or RMS in New South Wales, is typically responsible for regulating the sale of vehicles with damage histories.
Mechanic's Responsibilities and Complaints
If a mechanic fails to fix a car properly, they are still subject to Australian Consumer Laws for products and services. Complaints can be made to Consumer Affairs Victoria (CAV) and applications for compensation can be made to VCAT.
No Specific 'Lemon Law' but Australian Consumer Law Protection
While there is no specific 'lemon law' in Australia, the Australian Consumer Law protects buyers of both new and used vehicles. If the lemon is a used car, a claim can be made to the Motor Car Traders Guarantee Fund if the dealer will not repair a fault covered by statutory warranty provisions.
Legal Definition of a 'Lemon' and VCAT Jurisdiction
There is no legal definition of a 'lemon' in Australia, but it generally refers to a product with a persistent defect that prevents it from living up to expectations. The Victorian Civil and Administrative Tribunal (VCAT) is authorized to hear cases where buyers seek to cancel the sale of a vehicle for $40,000 or less.
