Page 4272 - Week 12 - Wednesday, 23 October 2019
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no exception. But sometimes things go wrong. A newly purchased car breaks down, or the air conditioning, for example, stops working. There might be a major fault that cannot be fixed or is too difficult to fix within a reasonable time frame. In this instance the consumer can choose between a repair, a replacement or a refund, or they can receive compensation for the decreased value of the goods.
There might be a non-major fault. In this instance, the supplier rather than the consumer can choose between a repair, replacement or refund. But here is the thing—the supplier of goods usually has more technical knowledge than the consumer, so in practice it is the supplier who generally determines if the fault is major or non-major. This can then lead to other problems, such as consumers finding themselves trapped within a cycle of repeated non-major faults or continuous repairs of the same defect. Rather than just nipping the problem in the bud, motorists can find themselves repeatedly coughing up money for bandaid solutions.
If a consumer is unable to reach a solution through negotiation with their supplier, under Australian consumer law they may wish to pursue a remedy through the ACT Civil and Administrative Tribunal, but this is not an option for some motorists. The tribunal has a jurisdictional limit of $25,000 for consumer law matters, and consumer law matters cover motor vehicles. Vehicles like second-hand caravans or motorhomes are usually well above that $25,000 limit.
This is one of the reasons second-hand caravan and motorhome owners can be very vulnerable if they end up with a lemon, and aspiring grey nomads are particularly vulnerable. Some have poured a significant portion of their pension or their savings into their dream vehicle. They may not have a lot of money or even enough to cover legal fees.
The ACT’s Consumer Law Centre receives many inquiries about second-hand vehicle purchases, including the application of the Sale of Motor Vehicles Act and the Australian Consumer Law. According to the centre, many people spend their money or in some cases their life savings on motor vehicles. When something goes wrong, they feel like they are not protected or that they have little recourse.
Another problem with limited consumer protections is the emergence of questionable third-party warranty companies. You do not have to look far to find complaint after complaint. Some warranties offered may appear okay on the surface, but dig a little deeper and it is clear many offer very little in the way of value and include a lot of exclusions.
Byron understands many of these problems all too well. He bought a second-hand 2007 Jeep from a used car dealership in February. Yes, I very much appreciate he bought a Jeep, and he acknowledges that as well. Byron’s purchase was not covered under statutory warranty as the car was more than 10 years old, but the dealership offered a warranty agreement as part of the sale, with the caveat that it be regularly serviced through an approved mechanic.
A few days later, the driver’s side window became stuck while open. Luckily the dealership agreed to fix it under warranty. Shortly after, Byron was passing through
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