Video chapters
Quick answer
A car bought from a dealer must meet the Australian Consumer Law consumer guarantees. For a major failure, the consumer can generally reject the car and choose a refund or replacement, or keep it and claim compensation. For a minor failure, the dealer usually gets a reasonable chance to repair it.
What to do
- Diagnose — Get the defect, history and safety risk documented
- Classify — Assess whether the failure is major or minor
- Demand — State the ACL remedy sought in writing
- Escalate — Use fair trading and the local tribunal or court
Transcript
A car bought from a licensed dealer must be of acceptable quality, fit for disclosed purpose, match its description and come with clear title. Those Australian Consumer Law guarantees can continue beyond a dealer or manufacturer warranty. Age, price, kilometres and representations affect what quality is reasonable.
A major failure includes a problem that would have stopped a reasonable consumer buying the car, makes it substantially unfit and not easily fixed, or creates an unsafe vehicle. The consumer can generally reject the car for a refund or replacement. For a minor failure, the supplier usually chooses and performs a repair within a reasonable time.
Keep the advertisement, contract, finance papers, warranty, service record, invoices, diagnostic codes, photographs and every repair attempt. Obtain an independent mechanical report where proportionate. Write to the dealer identifying the consumer guarantee, why the failure is major or minor, and the specific remedy you require.
Give a reasonable response deadline. Then use the state fair trading or consumer agency and the tribunal or court with power to order the remedy. Finance, manufacturer liability and consequential loss may require separate treatment. Do not abandon or sell the car without advice if you intend to reject it.
A lawyer can assess major failure, rejection rights, evidence, finance and the correct forum. Go To Court can provide free general information and arrange a consumer-law consultation where a suitable lawyer is available. The contact details are on your screen.
Sources and further help
Sources checked 3 September 2026.
Important
This video provides general information about consumer guarantees and motor vehicle disputes in Australia. It is not legal advice and does not take account of your circumstances. Laws, procedures, fees and time limits can change, and state or territory rules may apply. Get advice from a qualified lawyer about your situation.