Read the ACL’s guide to motor vehicle sales and repairs to find out more about your consumer rights.
Have you been experiencing issues with a vehicle purchased for your business?
Vehicle issues that take small business owners off the road can have a major impact, and it’s a common concern our business advisers hear about. These issues can include:
- Faults occurring soon after purchase.
- Warranties not being honoured.
- Misleading sales tactics.
- Disputes over condition or contract terms (including finance clauses in the contract of sale that the purchaser hasn’t read and/or understood and then claims are unfair).
Your consumer rights as a business owner
If your vehicle was purchased for your business, you may still have rights under Australian Consumer Law (ACL), particularly when:
- The vehicle costs less than $100,000.
- The good is a vehicle or trailer that is used mainly to transport goods on public roads.
Your consumer rights may include:
- Statutory warranty (depending on the age of the vehicle and the number of kilometres it has driven).
- Manufacturer’s warranty (new cars).
- Consumer guarantees under ACL. For example: the vehicle must be fit for purpose, free from defects, safe and durable.
Action to take
Tip
Extended warranties are optional and do not replace your existing legal protections. Read the Consumer Protection car warranties guide to find out more.
Resolving a vehicle dispute with a car dealership
We often hear from business owners that they are unable to get vehicle issues resolved, despite their consumer rights.
If you are in this situation, we recommend following this process.
Step 1: Put the issue in writing
For any business dispute, it is best to put the issue in writing. This gives you the opportunity to create a clear record and timeline of the issues experienced. In your documentation, we recommend:
- being factual and polite
- including key dates, receipts and photos
- providing a (realistic) time frame in which you would like them to respond
Action to take
Download our free letter of complaint template to help you get started.
Step 2: Raise the issue with the dealership
Send your written communication to the dealership. You may need to follow up with a phone call to further discuss the issues and how you would like the situation resolved.
Step 3: Escalate to the Dealer Principal or General Manager
If you have been unable to resolve the issue with your initial communication, your next step is to escalate the issue to the Dealer Principal or General Manager of the dealership. These positions are often the major decision makers at the dealership.
Action to take
Use the Online Licence Search on the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) website to find the contact details of the Dealer Principal or General Manager.
When using the search, search by Type and select Motor Vehicle Dealer under the record type.
Step 4: Know who to turn to for help
If you have followed these three steps and your issue is still unresolved, there are government departments that you can contact for help. Who to contact will depend on how the vehicle was purchased.
If the vehicle was purchased privately
Contact Consumer Protection WA for help if the vehicle was purchased:
- In your personal name.
- Through your business but the vehicle is a consumer type vehicle and is predominantly used privately (eg: activities that do not relate to running your business).
When describing your complaint to Consumer Protection, be clear that the vehicle is primarily used for personal use.
Lodge a Consumer Protection complaint form.
If the vehicle was purchased as a business
Contact the SBDC’s free advisory service if the vehicle was purchased in your business name and is primarily used for business purposes.
If our business advisers are unable to help you resolve the issue, they may refer you to our dispute resolution service for more intensive case management. This service is particularly useful for small business owners who need support to navigate the complexities of consumer law and achieve a fair outcome.
Tips to avoid future vehicle issues
- Purchase only from licensed motor vehicle dealers.
- Always inspect the vehicle thoroughly.
- Ask for all promises/commitments in writing.
- Keep copies of all your communication with the dealership on file.
More information
- Visit the Consumer Protection website for more information on new and used car warranties.
- Read the ACL motor vehicle sales and repairs guide.
- Sign up for the SBDC small business news to get the latest information to help you start and run your business
