What to do now
Official ACCC pages: Just bought a new car, Just bought a new car (PDF), Repair, replace, refund or cancel, If a business won't fix a problem.
Clock: No formal deadline before contacting the dealer, but act within a reasonable time after discovering the fault. Wait: None. Fee: Free to contact the dealer and state consumer agency; tribunal fees vary by state and claim size.
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Contact the dealer today (the supplier who sold the car), not only the manufacturer. Australian Consumer Law consumer guarantees apply to the seller. Get the dealer's customer service or complaints contact number or email.
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Put it in writing. List the faults, the repair history (dates and what was attempted), state that this is a major failure under the Australian Consumer Law consumer guarantees, and choose your remedy (full refund, or same-type replacement, or keep the car with compensation for the drop in value). Include your contact details, the vehicle VIN and invoice date, and a clear deadline (for example, 7 to 14 days). Send via email or registered post and keep a copy.
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For a minor failure, the dealer must fix it free within a reasonable time. If they cannot or do not fix it in a reasonable time, you can then treat it as a major failure and choose refund or replacement (ACCC repair/replace/refund).
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If the dealer refuses or stalls, escalate. ACCC says contact your state or territory consumer agency, then consider small claims tribunal or court. The ACCC does not decide individual disputes.
This is legal information about defective new car ACL rights in Australia, not personal legal advice.
What is a major failure under ACL?
From the ACCC Just bought a new car page and the repair/replace/refund guidance, a major failure with goods (including a motor vehicle) includes a product that:
- cannot be fixed, or is too difficult or expensive to fix, within a reasonable time
- is so different from the description, sample, or demonstration that you would not have bought it if you had known
- cannot be used for its normal purpose (or the purpose you were told), and the problem cannot be fixed within a reasonable time
- is unsafe (for example, the brakes, steering, or airbags do not work properly, creating a risk of death or serious injury)
If your new car has had repeated failed repair attempts for the same or related serious problems, or has spent weeks off the road being repaired, or has a safety fault, these all point toward a major failure.
Your choice of remedy for a major failure
You choose:
- a full refund (the purchase price, with no deduction for the time or distance you drove the car before the failure), or
- a replacement of the same type (another new car of the same or similar model), or
- keep the car and claim compensation for the drop in value
You may also be able to claim reasonably foreseeable loss caused by the failure (for example, towing costs, alternative transport, or lost income if you needed the car for work). Keep receipts.
Minor failures and reasonable time
If the problem is not major (a minor failure), the dealer must fix it free of charge and the dealer chooses repair, replacement, or refund. The dealer must fix the problem within a reasonable time.
If the dealer cannot or does not fix the problem within a reasonable time, or if the dealer refuses to fix it, you can:
- get the car fixed elsewhere and recover reasonable costs from the dealer, or
- seek a refund or replacement, or
- keep the car and claim compensation for the drop in value
Repeated failures to repair, or very long repair times, can convert a minor failure into a major one.
Consumer guarantees vs warranty
Consumer guarantees under the Australian Consumer Law sit on top of manufacturer and extended warranties. The guarantees run for a reasonable time based on the cost and nature of the goods. A brand-new car costing tens of thousands of dollars will have longer ACL protection than a cheaper product.
Key points from ACCC (Just bought a new car, repair/replace/refund):
- A warranty cannot remove or reduce your ACL consumer-guarantee rights.
- Consumer guarantees can last beyond the warranty period for expensive goods like new cars.
- If the dealer or manufacturer says "the warranty has expired, so we will not help," still raise your ACL consumer-guarantee claim in writing.
- The dealer must not fob you off to the manufacturer instead of handling the ACL consumer-guarantee claim.
Worked example with dates
- 10 January 2026: you buy a new car from the dealer for $35,000. Manufacturer's warranty is three years.
- 15 February 2026: the engine warning light comes on. You book the car into the dealer.
- 20 February 2026: the dealer says they replaced a sensor and the car is fine.
- 10 March 2026: the warning light reappears. The car goes back to the dealer.
- 25 March 2026: still no permanent fix. The dealer replaces another part. You collect the car.
- 5 April 2026: the same problem reappears, and the car loses power while driving. This is unsafe and you cannot rely on the car. You keep all service records.
- 6 April 2026: you email the dealer, list the three failed repair attempts within two months, state that this is a major failure under Australian Consumer Law, and choose a full refund. You give 14 days to respond. You keep a copy of the email and the repair invoices.
- If the dealer refuses or does not respond: you contact your state consumer agency (for example, NSW Fair Trading, Consumer Affairs Victoria, or Queensland Office of Fair Trading) and lodge a complaint. If agency mediation does not resolve it, you then consider tribunal or court.
Where to escalate if the dealer refuses
ACCC page: If a business won't fix a problem
State and territory consumer agencies:
- NSW: Fair Trading
- Victoria: Consumer Affairs Victoria, Refunds repairs and returns
- Queensland: Queensland Fair Trading, consumer rights
If agency help does not resolve it, small claims tribunal or court is the usual next step for money claims.
An enforcement example
In one case brought by the ACCC, the Federal Court found in 2021 that Mazda misled nine customers by telling them their only remedy was another repair, when the Australian Consumer Law also gives a refund or replacement for a major failure (ACCC media release, 30 November 2021).