NSW Bought Mercedes Benz at Pickles Auctions with Blue Slip

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23 July 2015
Hi there guys!
First of all, I apologise if the way I have posted anything is not the correct method but I am dearly frustrated at the moment. I have just 3-4 weeks ago purchased a Mercedes Benz car at auction. New/ first owner, never previously registered, 2015 compliance, 2800KM on it and given the mechanical go-go.

I understand (generally) due to 'Australian Consumer Law' and it being an auction, cases like these are NOT protected under ACL (and the manufacturer also 'excludes' auction sales from warranty).

However, my concern is this brand new car (2015! 2,800KM) was advertised to be in perfect working order. Although I do understand at auctions, they are sold 'AS IS', my problem is that I was given a blue slip by Pickles Auctions (the auction house) and that the car is 'mechanically working (not faulty)', however from the time I drove it out, it has had a faulty transmission.

I booked in a service over the phone at my local Mercedes Benz dealership almost immediately and 8-9 days after the purchase and picking the vehicle up, after an inspection by Mercedes Benz, it was deemed the transmission was faulty and needed a full replacement.

Isn't that a breach of ACL by Pickles Auctions? Also, is the balance and any idea of a 'new car warranty' simply void now that it was bought at auction?

PS: Isn't it weird knowing I could sell it 'to myself' and it would be a 'private resale' and THAT would be covered under warranty...? Or are they not that dumb? Regardless, shouldn't a vehicle's new car warranty remain!?

To have purchased a 2015, never previously owned Mercedes Benz almost brand new transmission with less than 2,800 KM on it (with a blue slip given by Pickles Auctions for it), and advertised as mechanically working/ perfect, but the day I drive it out it is a MAJOR fault (entire transmission = $25,000 repair quote). This is simply not adding up in my head and I am going in circles. I hope someone can help me as this is very very stressful being my first large purchase/ present to my wife.

Thank you so much in advance guys.

Also, I booked in the service ASAP as they were available, so the issue was explained to Mercedes Benz over the phone straight away but I could not get my car in for inspection (as, over the phone, the Mercedes Benz staff member knew it was most likely a large job and/or large inspection) - if that helps anything.
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Well-Known Member
10 February 2015
Hi Peter,

You are right that you aren't covered by the ACL however you would be covered by common law principles of contract law including false representation.

Have a read of this thread that is a similar situation to yours (from the opposite position): NSW - Car Sold Privately - Buyer Beware? | LawAnswers.com.au Legal Aid Forums

I suggest you see a solicitor to help you commence proceedings against the auction house.


26 January 2017
Peter - Did you manage to Find a Solicitor who you can recommend? Or did you manage to find a way to get your money back?

Can you please recommend what we can do?

The exact same thing has happened to us.