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New Car Servicing

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The Australian Competition and Consumer Commission (ACCC) have recently provided updated information regarding consumer rights and servicing cars under warranty. This information is consistent with previous guidance that the Australian Consumer Laws (ACL) gives car owners a guaranteed level of protection for vehicles they buy and that this guarantee applies regardless of any other warranty offered by a vehicle manufacturer.

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Furthermore, there is NO REQUIREMENT under the Australian Consumer Law (ACL) for a vehicle to be serviced by an authorized dealer in order for the consumer guarantee to apply.

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WHICH WARRANTY IS WHICH?

WARRANTIES OFFERED BY VEHICLE MANUFACTURERS

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In addition to the consumer guarantees under the ACL, vehicle manufacturers and dealers often offer manufacturer's warranties.

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A manufacturer's warranty is a promise to the consumer that the vehicle will be free from defects for a certain period of time and that any defects will entitle the consumer to a repair or other compensation.

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Note: If the manufacturer's warranty states that the vehicle can only be serviced by an authorized dealer, this may raise concerns under the Competition and Consumer Act (2010) and you are encouraged to to report this activity immediately to the ACCC.

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Extended Warranties offered by dealers

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Dealers sometimes offer their own 'extended' warranties on new vehicles. These usually kick in at the completion of the manufacturer's warranty. Although these warranties CANNOT REPLACE the manufacturer's warranty or the consumer guarantees, imposing conditions maybe permissible. If there are exclusive requirements in a dealer's warranty, an independent repairer may void the warranty if they service the vehicle. Many workshop owners offer their own extended warranties or instead choose to educate the customer on many pitfalls that may be associated with them.

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LOG BOOK

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The logbook in some vehicles includes a box which indicates that it should be stamped by an 'authorized dealer'. The ACCC have confirmed that even if a logbook is labelled in this way, an independent repairer may sign or stamp the relevant page of the customer;s logbook (once they have completed the service) without it affecting the manufacturer's warranty. provided any other requirements, like the ones mentioned above, are met (i.e. the service is carried about by qualified staff etc).

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