Bought a Boat or Jetski With Hidden Faults? The ACL Still Applies on the Water

You paid a dealer $18,500 for a second-hand jetski advertised as “fully serviced, no issues, ready for summer”. Second outing: it takes on water. A marine mechanic finds a repaired crack in the hull, hidden under fresh paint, and an engine that’s about 200 hours past the “low hours” on the ad. Repair quote: $6,200. The dealer says “it was sold as is, you inspected it”.

“Sold as is” is not a legal term in Australia. It’s a bluff.

Boats are goods. Dealers are suppliers. The ACL applies.

If you bought from a business (a dealer, a broker, a marine shop), the Australian Consumer Law consumer guarantees apply to boats, jetskis and trailers just like they apply to cars and fridges, as long as the price was under $100,000 or it’s the kind of thing normally bought for personal use:

• Section 54 – acceptable quality: safe, durable, free from defects. A hull that leaks is none of those.
• Section 56 – goods must match the description. “No issues” and “low hours” are descriptions.
• Section 18 and 29 – misleading conduct and false representations. Painting over a hull crack to sell it is about as clear as this gets.
• Sections 259 and 263 – major failure means you choose: refund, replacement, or compensation for the drop in value plus repair costs.

A dealer cannot contract out of these. Not with “as is”, not with “no warranty”, not with a signed inspection form.

What about a private sale?

The consumer guarantees don’t apply to private sellers, but the ban on misleading conduct still can in some cases, and ordinary contract law does. If the private seller lied about a known fault, you can still claim. It’s harder, so evidence matters more.

Evidence

• The ad. Screenshot it now before it disappears. Save the listing URL.
• Every message with the seller about condition, service history, hours.
• A written report from a marine mechanic: what the fault is, whether it existed at sale, and whether it had been concealed.
• The repair quote.

The Letter of Demand

State the remedy you want. For a hidden hull repair, most buyers want a full refund and to return the jetski. Cite ss 18, 29, 54, 56, 259 and 263, attach the mechanic’s report, give 14 days, and name the tribunal. Boat dealers in most states are also bound by Fair Trading and, for trailers, by vehicle dealer rules, so mention a regulator complaint too.

For a claim of $18,500, check your state’s small-claims limit and venue (in South Australia the Magistrates Court minor claim limit is $12,000). Filing fees are modest, and a mechanic’s report saying “concealed repair” is the kind of evidence a tribunal or court will want to see.

You bought summer. You got a sinking feeling. Send the letter.

Claim Done drafts your Letter of Demand for $49. Done in about 5 minutes. You approve it before it is sent.