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NSW Purchased Faulty Car from Jeep - Grounds for Renewal or Refund?

Discussion in 'Australian Consumer Law Forum' started by Chrisstanley, 6 January 2016.

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  1. Chrisstanley

    Chrisstanley Member

    6 January 2016
    Likes Received:

    We recently purchased a Jeep Cherokee which has broken down due to a broken transmission (gear box) requiring the vehicle to be towed. Jeep at this stage are willing to replace the transmission under warranty (outside of warranty, the cost is $12,000). I am only recently aware from other forums that Jeep have had a number of issues with this gear box here in Australia and in the US and there are idle notions of class actions being taken out against Jeep. Whilst we love the car, we would not have purchased it had we known about these issues as it deems the vehicle an unreliable 4WD for outback and isolated travel conditions. This also causes a significant reduction on the vehicles resale value, which further supports why we would not have purchased the car had we known about these issues prior.

    My question is, do we have adequate grounds under Australian Consumer Law to pursue a full refund, or renewal of the vehicle, and if so, would we require a solicitor to execute this for us?

    I am presuming that Jeep would not refund or replace the vehicle without a significant fight at considerable expense. If Jeep refuse a refund, or renewal, what grounds do we have down the track if another issue arises and are we best to ask for this now rather than later? I was considering giving Jeep the option to either replace or refund the vehicle before they carry out the repairs.

    Our vehicle has already been recalled once for a faulty tailgate issue relating to potential for a vehicle fire to occur.

    Kind regards
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
    Likes Received:
    Hi Chrisstanley,

    Traditionally getting refunds or replacements out of car companies has been almost out of the question. However the Australian Consumer Law provides clear indication that car dealers must guarantee that their vehicles are of acceptable quality and if there is a major failure on that guarantee then the customer has the option of refund or compensation for the loss in value of their vehicle. A major failure is basically - something so significant that you would not have purchased it had you known of the issues.

    I would write a letter of demand to Jeep demanding a refund or compensation and setting out the basis on which you are claiming it under Australian Consumer Law. I would also cc a copy to the Dept of Fair Trading.

    Check these articles out for further reading:

    Lemon Car? What You Can Do Under Australian Consumer Law - Legal Blog -
    Motor vehicle sales & repairs - an industry guide to the Australian Consumer Law | ACCC

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