CHOICE membership

Second hand car warranty special conditions

cars

#1

We bought a second hand Mitsubishi Pajero from a dealer on the sunny coast.
We said to them straight up at first meeting we wanted a 4x4 with 3t towing capacity as we will be towing a caravan and doing the big lap. Only reason for the purchase.
He said there was nothing onsite suitable but there was a vehicle at another site that could be sent over for us to test drive. We agree to come back 2 days later.
On arriving back for the test drive we were advised the vehicle was in "as traded " condition and had not been cleaned yet. That was fine as long as the cleaning was done prior to us taking possession of new to us car.
We discussed the warranty and if we needed any defects repaired on the road were advised verbally that it could be done.
On arriving to collect the vehicle sales guy said he noticed a button missing on the media player/sat nav unit. He assured us a new one would be put in all no issues the following week and to call on the Monday to arrange a time.
Then we were informed that the warranty would only apply If all servicing was done by their own service unit. If anyone in any capacity worked on the car without their prior approval the warranty was null invoid, also the service area only included South eastern qld. We felt we had to take the car as we had no option and just had to hope nothing serious went wrong. It didn’t thankfully!
On following up the following week about the button, sales guy refused to speak to us, management told us media unit not covered. I pushed for a replacement as car was not in same condition as was presented at test drive. Eventually after threatening taking to consumer affairs QLD, they replaced with another secondhand unit.
Will never buy from Cricks auto Group again, and have never recommended them either.


#2

The moral is that anything not written in a contract usually does not matter in law. You were fortunate they replaced the unit.

As for warranties and servicing, many used car warranties (beyond the short statutory one) have the requirement to have it serviced at the dealer. It is a rort and you seem to have recognised it as one. Capped servicing is another - the capped service prices on our vehicle were more than the independent shops normally charge. When we decided the dealer was too inconvenient (they relocated too far away) and went to a local independent, we saved about $200 against the capped price. Capped service is marketing at its best.

Extended warranties are worse having similar requirements for servicing while covering only very specific faults that arise, and from some reports, rarely arising.

Caveat emptor.


#3

They may have problems with trying to impose tbis on a buyer of a used car, unless they have an Exclusive Dealing Notification. See

It states in relation to information for the car dealer the following."If you wish to seek to restrict a consumer’s freedom to choose, for example, who they use as a repairer, you should get legal advice on the prohibitions on ‘exclusive dealing’ found in the Competition and Consumer Act 2010. Exclusive dealing broadly involves a trader imposing restrictions on a person’s freedom to choose with whom, in what or where they deal. For more information, see ‘Exclusive dealing notifications’ on the Australian Competition and Consumer Commission (ACCC) website."

I would be asking them for their Exclusive Dealing Notification/Approval. If this is not available or forthcoming, then their requirement in relation to restricting the warranty would be unlawful.


#4

Is this the outfit you dealt with? If so, their Product Review rating says it all.

Back in the early 1970’s, a person who had previously worked as a salesman at a shonky Sydney used car dealer told me about their warranty scam.

They would attach a sticker promoting their business on the rear window of each vehicle they sold, but they would always ensure that it was not centred and level so that the buyers would invariably remove the stickers.

When anyone tried to claim a problem under warranty, they would point out that removing the sticker voided the warranty.

No wonder the Trade Practices Act was legislated around that time.


#5

Searching the Exclusive dealing notifications register, it doesn’t appear they have one.

http://registers.accc.gov.au/content/search/basicFunnelbackWrapper.phtml?fromItemId=776499&funnelback_form_query=crick&funnelback_form_Search.x=0&funnelback_form_Search.y=0&funnelback_form_collection=allsites-meta&funnelback_form_profile=_default&funnelback_form_meta_I_sand=815176

Was the comment about where warranty work would be performed rather than servicing per say. I can imagine a dealer asking for a defect/warranty claim to be done at their own dealership as it is this dealership that the warranty is attached.

Restricting servicing to their dealership to ensure currency of a warranty is a completely different matter. Apple got into strife a few years ago about claims of warranty being voided because a non-Apple service centre performed work on their phones…when the problem with the phones was a Apple issue.