[2025] VCAT 1000
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2025-11-07
Original judgment source is linked above.
(a) a refund of the purchase price of $18,000.00, which implies orders declaring that he is entitled to reject the vehicle under sections 54 or 55 and of the Australian Consumer Law (Victoria);
(b) alternatively damages of $12,877.90 which is the estimated cost of replacing the vehicle's engine with a second-hand engine; and
(c) additional damages based on the cost of replacing the Kluger with a hire car at various times, and out-of-pocket expenses alleged to have been incurred by the applicant when the Kluger was not operating.
(a) to the extent the claim is based on notions of breach of contract, that the contract did not contain any express guarantees in relation to the operation or functionality of the Kluger;
(b) to the extent the claim is based on notions of there being an obligation to repair the Kluger, the contention that there is no individual cause of action for failure to repair, either at common law or in legislation;
(c) the claim under section 55 of the Australian Consumer Law (Victoria) must fail because the applicant did not disclose a particular purpose for his acquiring the Kluger, beyond the normal use of it as a motor vehicle;
(d) because section 55 is inapplicable on the facts, the applicant's strongest claim is under section 54 of the Australian Consumer Law (Victoria), but on the facts the respondent has not breached any obligation arising from that section;
(e) the applicant is unable to succeed under section 54 of the Australian Consumer Law (Victoria), because he rejected an offer by the respondent to replace the engine at its expense, insisting that the work be performed by another mechanic selected by the applicant. The respondent's submission is that by making this offer, as well as other matters, it took active steps to remedy the situation and fulfilled its obligations under the Australian Consumer Law (Victoria), only to be thwarted by the applicant;
(f) the respondent offered to replace the engine, but takes the view that doing so would be unnecessary. It follows that, if caried out, the applicant's insistence on having his mechanic replace the engine would result in 'betterment' - that is, the applicant receiving an unnecessary improvement to the vehicle at another person's expense;
(g) the respondent's mechanic discovered, when inspecting the Kluger for the purposes of considering the applicant's claim, that the vehicle had been involved in a front end collision whilst under the applicant's ownership, which throws doubt on the cause of any defect in the engine which might exist; and
(h) the applicant has driven the Kluger approximately 16,000 km since asserting that its engine needed to be replaced, thus severely diminishing the plausibility of his claim and suggesting that the engine is not defective.
if the respondent filed Points of Defence or a counterclaim by the due date,
no later than 11 February 2025, each party must send to each other party and VCAT a copy of all documents in their possession or control which they want to rely on in any hearing of their case or which might be harmful to their case or helpful to the case of another party.
if the respondent has not filed Points of Defence or a counterclaim by the due date,
no later than 11 February 2025 the applicant must send to the other party and VCAT a copy of all documents in the applicant's possession which they want to rely on in any hearing of their case or which might be harmful to their case or helpful to the case of another party.
(a) Regrettably, the applicant seems to have paid a lot more attention to the condition of the Kluger after buying it than before.
(b) The applicant did not expressly refer to provisions of the Australian Consumer Law (Victoria), but of course the legislation does not require a purchaser to expressly refer to them. The important issue is the substance of the communications.
(c) The applicant identified defects in the Kluger - a squeak in the brakes, a slight knocking sound in the steering, and a quantity of white grey smoke being emitted on starting. These defects as described do not amount to a 'major failure' of the Kluger within the meaning of that term in the Australian Consumer Law (Victoria). I will return to this point.
(d) The respondent's request for the vehicle, so that the respondent could have its mechanic attempt to identify defects, is consistent with the respondent taking the steps required of it when a purchaser of a car identifies defects which do not amount to a 'major failure'.
(e) It is unsurprising as a matter of simple logic that the applicant was unimpressed by the respondent saying that the mechanic had supplied 'thicker oil'. It might well be the case in some situations that the type of oil used in an engine could be very important and that replacing the oil was appropriate. However, the respondent's description in the brief SMS message would not instil confidence in a purchaser.
(f) The applicant's requests of 24 October 2023, on page 21 of the bundle, could and should have been much more carefully expressed. The Tribunal understands that people express themselves in shorthand, and write quickly, when sending SMS messages and that they do not compose SMS messages with the same care as they would when drafting a formal letter. I also observe that several of the SMS messages which I have quoted above contain the 'praying hands' emoji to signify that the performance of requested steps would be appreciated.
(g) The applicant is an engineer, and I do not doubt that if he was writing on behalf of a client, he would express himself carefully. In the SMS communications, though, he used expressions consistent with him asking the respondent to do things, rather than demanding that they be done. He wrote, 'Please get the comprehensive testing and fixing a problem with complete engine and exhaust, including fuel injectors, coolant engine oil mixing, if any cracks, sensors et cetera causing this issue. ... Also please get the brakes done properly'. The use of the words 'complete engine' are unfortunate but I interpret them to mean that the applicant was asking that the engine be completely repaired, and that he was not saying that he was demanding a replacement - a complete engine. I interpret the words 'including fuel injectors, coolant engine oil mixing, if any cracks, sensors et cetera' not as meaning that the applicant was asserting that the injectors needed to be replaced, that there were cracks, or that sensors needed to be replaced. Rather, I see those words as indicating that the applicant had heard from his mechanic a list of the things which might cause smoke in an engine, or that he had found general information to that effect elsewhere. I do not interpret the words as meaning that the applicant was asserting that there were specific problems with the injectors or sensors, or that there were cracks anywhere. Because of this, I interpret the applicant's SMS of 24 October 2023 as only amounting to a request that the respondent get the Kluger tested.
(h) In the circumstances, I conclude that the applicant's SMS message of 20 October 2023 which contained the words, 'Please fix the issues appropriately otherwise I want to return the car as soon as possible as whole families stressed due to this issue', did not constitute the applicant rejecting the Kluger.
(a) The applicant inspected the Kluger before purchasing it. He test drove it. He noticed some issues with the Kluger before he agreed to buy it, namely some noise in the brakes but the salesperson said - orally - they were 'small issues' which the respondent would fix. The applicant conceded that he had no written evidence to verify this point, such as SMS messages.
(b) The respondent supplied a Certificate of Roadworthiness ('RWC') with the Kluger. This occurred after the applicant had advised the dealer of the noise in the brakes and the 'small issues'. The applicant appreciates that the RWC was issued by an independent person, but he notes that he does not know what steps the certifier took before issuing the RWC.
(c) When the applicant took the Kluger to his mechanic to check, after he had purchased it, he did not ask his mechanic to repair anything. He only asked the mechanic to check the vehicle. The mechanic told the applicant that he observed smoke. The applicant had not seen smoke before he purchased the Kluger, and by way of explanation he said that when he did the test drive, he did not rev the engine when the Kluger was stationary.
(d) The applicant says that now, smoke is seen on starting the Kluger when it is stationary.
(e) The last time the applicant saw the Kluger emit smoke was on 18 October 2025. When Counsel for the respondent suggested that was quite close to the hearing, the applicant answered that he had driven the Kluger to the hearing. He said his wife also drives the Kluger.
(f) The applicant concedes that the respondent does not conduct business as a mechanic, and that when in October 2023 the respondent took the Kluger to its mechanic, that mechanic changed the oil. The applicant conceded that at that point the respondent did everything that the applicant had then asked for, and that the respondent relied on a mechanic's advice.
(g) Addressing issues under section 55 of the Australian Consumer Law (Victoria), which refers to fitness for disclosed purposes, the applicant said that using a passenger vehicle for the purpose of being an Uber driver was not a 'commercial use'. The precise meaning of that phrase to the applicant was not explored in cross examination but I gained the impression that it may relate to the issue of whether an owner would pay a higher premium for insurance on an Uber car compared to a private use vehicle. Counsel for the respondent suggested that the applicant's 'purpose' of acquiring the Kluger was simply to use it as a car, so that in this case there was no important difference between sections 54 and 55 of the Australian Consumer Law (Victoria). The applicant summarised the 'rules' which Uber imposes on drivers, and under which it can remove a driver's access to the Uber app if their car is too old or of unacceptable appearance.
(h) The applicant had ceased using the Kluger as an Uber car by January 2024.
(i) When the applicant took the Kluger to Airport Toyota, it told him that it suspected that the Kluger had a poor service history and that it had sludge in the engine.[12] Airport Toyota quoted $754.00 to carry out a proper inspection of the Kluger, but the applicant did not proceed.
(j) The applicant relies on the Airport Toyota documents, amongst other things, to prove the defects which he alleges. He acknowledges that because he did not proceed to get a proper inspection by Airport Toyota, his evidence from that source is weak.
(k) Airport Toyota told the applicant that they could repair the engine in the Kluger, but that replacing the engine was 'better'.
(l) The applicant did not accept Karworx's quote to repair the panel damage to the Kluger. There is no evidence of how that panel damage was repaired. The applicant is not a mechanic but he believes this front end collision was not detrimental to the engine.
(a) fit for all the purposes for which goods of that kind are commonly supplied; and
as a reasonable consumer fully acquainted with the state and condition of the goods [including any hidden defects of the goods] would regard as acceptable having regard to ...
[1] Orders are also made by registrars of the Tribunal, under formal delegations.
[2] The respondent did not bring a counterclaim.
[3] These extensions of time were granted without reference to the respondent, but the respondent's rights are protected under this procedure because it could seek directions itself.
[4] In Golem v Transport Accident Commission [2002] VCAT 319; [2002] 19 VAR 265 the Tribunal observed that section 98(1)(d) of the Victorian Civil and Administrative Tribunal Act 1998 (Vic), which speaks of the Tribunal's obligation to conduct each proceeding with as little formality and technicality as practicable as the requirements of the act and the proper consideration of the matters before it permit did not mean that 'Rafferty's Rules' prevail in the Tribunal. This important observation seems to been overlooked frequently since the Covid pandemic and the increase in parties filing documents electronically.
[7] This is stated at paragraph 4 of the applicant's points of claim dated 29 January 2025.
[8] Page 57 of the new bundle of documents.
[9] Page 38 of the new bundle of documents.
[10] Page 39 of the new bundle of documents.
[11] Page 40 of the new bundle of documents.
[12] In a nutshell, if a car's engine oil is not replaced when it should be, it becomes thick with impurities and through dehydration. This puts strain and pressure on engine components and by spreading impurities it can cause components to wear.
[13] In saying this I exclude limitation periods and other sophisticated topics.
Shaikh
Prestige Car Connect Pty Ltd
Claim by the purchaser of a used motor vehicle against a motorcar trader - significant disregard for the Tribunal's prehearing directions - Golem v Transport Accident Commission [2002] VCAT 319; [2002] 19 VAR 265 - sections 54 and 259 - 261 of the Australian Consumer Law (Victoria) - onus of proof - applicant's claim not proven.