What you can claim for
The Motor Vehicle Disputes Tribunal deals with claims of up to $100,000 - or more if both parties consent in writing.
You can take a claim of up to $100,000 to the Motor Vehicle Disputes Tribunal, or more if both parties consent in writing. You can also claim for the remedies available under the Act applicable to your claim.
Claims under the Consumer Guarantees Act 1993
Rejection and refundIf the vehicle fails to comply with the guarantees in Part 1 of the Consumer Guarantees Act you may obtain an order upholding your rejection of the vehicle. This applies if:
- the failure can't be remedied, or
- the dealer refuses to remedy the failure, or
- the failure is of a "substantial character" as defined in section 21.
In such cases the trader is ordered to give you a full refund. You may, instead of rejecting the vehicle, get damages equal to the amount the vehicle has been devalued by the failures.
If you seek to reject the vehicle you must first notify the vehicle trader in writing of your decision and reasons for rejecting the vehicle. It is essential that any right of rejection is exercised within a reasonable time of the fault becoming apparent, or the right of rejection will be lost.
The right of rejection is also lost if the vehicle is disposed of or has been damaged after it is delivered to you, for reasons unrelated to its condition when you bought it.
Repair costs
Alternatively, the Tribunal can award reasonable repair costs to the purchaser. Under this remedy, you must ask the trader to repair the vehicle and give them a reasonable time to do so before having the failure repaired elsewhere.
Consequential damages
The Tribunal may also order the vehicle trader to pay damages (money) for any loss or damage to the purchaser resulting from the failure of the vehicle to comply with a guarantee in the Consumer Guarantees Act.
This is on the condition that the loss was reasonably foreseeable as liable to result from the failure. Examples are towing costs, car rental costs, or the costs of getting an expert to report on the cause of the vehicle failure.
Claims under the Fair Trading Act 1986
When the Tribunal finds a purchaser has suffered loss or damage it has discretion under the Fair Trading Act to:
- declare that the contract and any collateral contract is void (see collateral credit agreements below)
- vary the contract
- order the trader to refund money
- order the trader to pay damages
- order the trader to repair or provide parts for the vehicle
- order the trader to provide specified services.
Claims under the Sale of Goods Act 1908
The Tribunal may award damages under the Sale of Goods Act when it finds that a trader sold a vehicle that was not of merchantable quality or reasonably fit for purpose.
Collateral credit agreements
A collateral credit agreement is a contract or agreement that the purchaser and trader made at the time the vehicle was sold, allowing for credit by a third party - usually a finance company - to enable the purchaser to buy the vehicle.
When the Tribunal orders that a purchaser has a right to reject the vehicle under the Consumer Guarantees Act, or declares the contract for the sale of the vehicle void under the Fair Trading Act, it may order that the rights and obligations of the buyer under a collateral credit agreement be transferred to the trader.
It can do this if the collateral credit agreement is associated with the vehicle's contract of sale and the trader is a party to that contract. As a purchaser, this means you may be relieved of your obligations under the finance agreement and get a refund for any payments you've made.
