The automotive industry’s refund policy has been criticised by consumer group Choice, who is calling upon all major brands to implement a 60-day return policy for faulty cars.
Only Toyota, Holden and Volkswagen have a 60-day refund policy, says Choice.
The three brands will replace vehicles in the first 60 days of ownership if they have a defect and can’t be driven or deemed unsafe after numerous repair attempts.
“Right now, you get better treatment with a faulty $40 toaster than a faulty $40k car when it comes to refunds,” says Choice consumer rights advocate Amy Pereira.
Choice singles out Ford, Kia, Nissan, Hyundai, Honda, Mitsubishi Mazda for their refund policies.
Pereira says Australians expect better treatment from car companies when it comes to faulty cars.
“Cars are a vital and expensive purchase. We rely on them for work and family and to be given the runaround when things go wrong is unacceptable. We deserve better, especially for such a significant purchase,” Pereira says.
Choice’s 2016 report shows two-thirds of Australians experienced an issue with their new vehicle in the first five years.
However, the Federal Chamber of Automotive Industries (FCAI) does not believe manufacturers and brands need to commit to a time-specific guarantee because the laws already insulate consumers from faults and defects.
“New car sales in Australia are covered by Australian Consumer Law (ACL), one of the strongest consumer protection laws in the world. This prescribes a guarantee of acceptable quality and safety,” FCAI chief Tony Weber says.
“Included in the ACL is the notion of major and non-major failures and all FCAI members, together with their dealer networks, respond to consumer issues with both their own comprehensive warranty guarantees and the ACL in mind.”
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Sounds OK but can you get a refund on a House, can a Doctor or Hospital un-do any damage by a wrong diagnosis and give a full refund as well? Will your Accountant, Financial Advisor or Lawyer change things back to how they were, any time things don’t go as planned. Can we get a refund or change a Government every time a politician or Government re-negs on promises?
I’m not aware of any piece of machinery which is as complex as a motor vehicle; where the components are sourced from so many suppliers and from so many Countries (now that we don’t have a local major Automotive manufacturing industry). By comparison, a motor vehicle is one of the cheapest pieces of complex machinery you can buy and at the same time is exposed to more adverse wear and tear than most other products. However, what would certainly help the situation is if Governments decided that a vehicle which is refunded can get a complete reversal of the Registration costs and associated taxes. Not sure if they will agree to that.