As a car owner or prospective car owner, the importance of knowing what the Australian Consumer Law (ACL) says cannot be overstated.
Have you ever thought what it would be like if car buyers were not protected by laws? Instead of looking forward to getting the newest model, you’d probably stress over buying one.
Fortunately, you need not overthink because governments have stepped up in terms of regulation and we have laws protecting consumers, especially car owners!
What Is the Australian Consumer Law?
The Australian Consumer Law is a national law that protects consumers like you and me, and yes, including car buyers wherever in Australia.
This law holds businesses – like vehicle dealers, distributors, repairers, importers, and parts suppliers – accountable in their dealings with customers.
All states incorporate the ACL in their laws. State and territorial consumer protection laws govern car deals transacted through auctions and private sales unless the contract of sale expressly excludes it.
What does the ACL say about consumer guarantees?
The ACL applies to the purchase of vehicles and ensures that the dealer honours the guarantees attached to the car.
Acceptable quality and suited for the expected purpose
According to the Australian Consumer Law, new cars and even used cars you buy must match the seller’s description or the qualities demonstrated in the model or sample.
In other words, sellers shouldn’t be selling ‘lemon cars’, a term referring to vehicles that are defective and are too flawed to serve their purpose or to be considered safe to use.
Full ownership
Once you’ve paid for the vehicle, you must enjoy undisturbed possession and shall have the title or proof of ownership.
Availability of after-sales services and spare parts
The manufacturer must also guarantee that spare parts and repair facilities will be made available for a reasonable time after the purchase.
Just a quick example: General Motors has committed to provide parts and service centres for the discontinued Holden for ten years after phase-out. How long they’ll commit to this accountability and how the government will ensure the full imposition of the ACL provisions remains to be seen.
In the case of used vehicles, the buyer’s claim is made against the dealer only.
No hidden debts
As you can gather from the Australian Consumer Law, used cars must be sold clean, meaning there should be no added costs, arrears, or other duties that the buyer will be made to pay.
While it’s true that the ACL protects your rights, you should also do your part as a buyer and practice due diligence. Check out for more tips when buying a used car.
FAQs about the Australian Consumer Law
1. What does ‘acceptable quality’ mean?
The vehicle is of acceptable quality if it is durable, free from defects, safe, appear in good condition, and serve the purpose of cars of this type. If the vehicle does not satisfy any or all these conditions, buyers can invoke the consumer law and expect it to protect them.
2. When is the ‘acceptable quality’ provision not applicable?
This provision of the Australian Consumer Law does not apply if:
- The seller has disclosed the defect before the purchase, and the buyer went on with the transaction despite the disclosure.
- The defects are quite detectable even without the seller’s disclosure, such as a dent on the body or a damaged seat. Defects that are not as detectable, such as those relating to a car's gearbox or engine may have remedies under the ACL.
3. What are considered major failures?
Major failures are catastrophic mechanical malfunctions in the vehicle you bought. The supplier or manufacturer is accountable to a major failure and must provide remedies even if the warranty has expired.
If you find yourself in this situation, you can demand for a refund of the purchase price or the replacement/repair of the said vehicle. You may also claim vehicle compensation from the supplier or the manufacturer to offset a future loss in value.
4. What are considered minor failures?
Minor failures are issues that can be resolved within a reasonable period, such as slight noises made by any part of your car. You cannot demand for replacement or refund for a minor failure but may seek assistance from the seller for the repair of the defective parts.
5. Abnormal use can render a warranty void, what does it mean?
You’re right, as you will find in the Australian Consumer Law, warranty can be voided due to abnormal or abusive use of a vehicle. For instance, filling the diesel tank of a car with petrol or driving a two-wheel vehicle in off-road excursions will void warranties and dis-entitle you to remedies.
6. If I use aftermarket car parts on my vehicle, will that void the warranty?
Using aftermarket car parts will not void the manufacturer’s warranty, contrary to what most dealers make you believe. However, if it is proven later that the aftermarket part has caused an original part to fail, it may free the manufacturer from their accountability on that particular original car part. The moral: Always read the fine print in your warranty.
Conclusion
As a car owner, you should know your rights. It helps to know the key points of the Australian Consumer Law.
Be informed about what a warranty provides and how the law protects your interests. Know what the sellers are accountable for and how best you can enjoy sellers' warranties.
Also be aware that many times, car owners unwittingly void warranties by their abusive behaviour toward their car. Always keep in mind that it pays to know your responsibilities as much as you know your rights.