SA Dealer Sold Holden Lemon Car - Can I Sue?

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9 February 2017

I purchases a Holden Cruze (used car) from a dealer in 2014 and I have purchased an extended warranty for 3, which is valid until 2017 August. It went okay until last October 2016. I started noticing smoke from exhaust and have to take it to the dealer and was rejected twice saying there is no issue.

Later in December 2016 it got worse and then they agreed for a fault and it ended up in a major repair with engine ripped apart and reassembled.

It was covered mostly in the insurance, but the problem is the dealer hasn't fixed the issue properly until today and every time they say it's ready to be picked up, I find a error code popup on my dashboard and had to drive it back to them.

This is occurred 3 times now and still the car is with the dealer. It's so annoying and frustrating with their quality of work and I'm pretty sure they don't know what they are fixing.

What I have mentioned is just a major defect, before that I had to fix my A/C, Speaker, Brakes and all charges were claimed from the extended warranty.

My question is, can I take some legal approach to sue them since they have sold me a lemon car with several defects in it. What else I can do to get out of this situation.

Any suggestions would be of immense help.

I need to sell off this car, but to do that, it should be in a sell-able state which at this moment is a big no.

Please provide me with some guidance.


Well-Known Member
31 October 2015
Hi Murali,

The question is what would you sue for? If you are out of pocket or suffered in some way then ok, but if they have done everything to try and fix it, probably not. That is as long as its fixed or on a path to be fixed. They do have to effect repairs in a reasonable time frame. You have rights under Australian Consumer Law.

Have a look at these blog posts. They might help.

Faulty Second Hand Car? Your Options as a Buyer - Legal Blog -
Lemon Car? What You Can Do Under Australian Consumer Law - Legal Blog -


7 May 2017
Hi Murali

I'm exactly in your situation, I have bought my Cruz in 2010 for the first 3 years when it was under warranty my car was fine but afterwards one problem after another, Now my transmission completely failed dealer is asking me to pay 5400 bucks for repairs.

A few months back, it had a major oil leaks which I got repaired from my local mechanic that costs me 1200 bucks. Now my coolant is leaking as well.

I have been in so much stress for the last few weeks, I can't figure out what to do next. Seems like all the money I have didn't in this junk will go into drain very disappointed customer. Anything I can do?

Please help.
19 March 2018
I can give you the answer to your problems, Holden doesn't care and you should have not purchased a Cruze, they are rubbish.