Bought a new car, but it is a new car lemon?

Bought a new car, but it’s a lemon?

Buying a new car is an exciting experience, but what happens if you have bought a new car lemon? How disappointing and angry would you feel, right?

Did you know that when you buy a new car that there are automatic guarantees? These are referred to as Australia’s consumer guarantee rights and they extend to buying a new car.

If you have had problems with your new car, you are entitled to have these problems remedied under the consumer guarantee and the manufacturer’s warranty or extended warranty.

What does the consumer guarantee cover?

When you buy a new car, there are a number of things that are covered, including

  • Acceptable quality
  • Be fit for any purpose disclosed before the sale
  • Match the description provided
  • Have spare parts and repair facilities regardless of whether an independent operator services or repairs your car.

What does the manufacturer’s warranty cover?

  • The promise about your new car and what they will do if something goes wrong
  • Generally, the manufacturer warranty applies for a specified time, dependent on the manufacturer
  • It comes with conditions for what you can claim

What does the extended warranty cover?

Not all cars come with an extended warranty and may be an add-on purchase

  • It applies for a specified time, dependent on the manufacturer
  • It usually replicates the existing warranty, but for an extended period of time.
  • Ensure that it provides you value for money and greater benefit than that of a consumer guarantee

What happens if the new car fails to meet consumer guarantee?

As the consumer, you do have rights against whoever supplied the car, whether it be the dealership or the manufacturer. You may be entitled to a repair, replacement or refund.

For more information on your consumer rights, you can visit the ACCC website https://www.accc.gov.au/consumers/consumer-rights-guarantees

Disclaimer -This page/article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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