Faulty Car From a Dealer in Australia? Cost and Your Options

Bought a car from a dealer and it turned out faulty or not as described? Under the Australian
Consumer Law you can demand a refund, a replacement or a repair — and a “sold as is” sign does not take those
rights away. You have three real options: deal with the dealer and your state consumer agency yourself, have a
formal demand drafted for a flat $29, or use a lawyer. This page sets out what each costs and
what you are entitled to.

First: what are you entitled to?

A car bought from a dealer comes with consumer guarantees under the Australian Consumer Law: it must be of
acceptable quality, fit for purpose, and match its description (sections 54 to 56). These guarantees cannot be
signed away, so a “sold as is”, “no warranty” or “trade sale” term does not remove them (section 64). What you can
demand depends on how serious the problem is:

• Major failure — if a reasonable person would not have bought the car had they known, or it
  is unsafe or substantially unfit — you can reject the car and choose a refund or a replacement
  (sections 259 and 260).
• Minor failure — the dealer can choose to repair it within a reasonable time; if they do not,
  you can have it fixed and recover the cost, or reject.

Most states and territories also give a dealer statutory warranty on top of these rights, within
age, price and kilometre limits.

Your three options, compared by type

1. Deal with the dealer and your state consumer agency (free)

You put the problem to the dealer, and if they refuse, escalate to your state consumer agency (such as NSW Fair
Trading, Consumer Affairs Victoria or the Office of Fair Trading in Queensland), which can help resolve it, and then
to your state tribunal (NCAT, VCAT, QCAT and the equivalents) or court.

• Cost: free to complain to the dealer and the state agency; a modest fee may apply at the
  tribunal.
• Good for: a clear case where you are comfortable putting your own argument to the dealer and
  the agency.
• Trade-offs: you prepare and argue your own case, and a vague complaint is easy for a dealer
  to brush off. A firm letter that sets out the law and a deadline is often what gets a refund moving.

2. Demand letter drafted — Claim Done ($29 flat)

You answer a few plain-English questions about the car and the faults. Claim Done drafts a formal demand to the
dealer from your answers — the car, a numbered schedule of the faults, your consumer guarantee rights, your state’s
dealer warranty, and a deadline to refund, replace or repair. You read it and approve it before it is sent.

• Cost: a flat $29, shown before you pay. No subscription. Email delivery is
  free; registered post, signed for on delivery, is $29 extra.
• Exact deliverable: a finished, ready-to-send demand to the dealer, drafted from your facts,
  that applies your state’s law and names the consumer regulator and the tribunal that hears the claim.
• Turnaround: usually ready about five minutes after you finish the questions.
• What you supply: the dealer, the car (make, model, year, odometer, what you paid and when),
  a list of the faults and any independent mechanic’s report, and whether you want a refund, replacement or repair.
• What happens after you approve it: the demand is delivered to the dealer, and you get a copy
  and the delivery confirmation. A firm letter citing the law often gets a result without a tribunal hearing.
• Good for: most faulty-car disputes where you want a correct, firm demand that applies your
  state’s law, without paying lawyer rates.

3. Lawyer (quote-based)

A lawyer can advise you and act for you, including at the tribunal.

• Cost: quoted by the firm, usually hourly; ask for a written quote first.
• Good for: a high-value car, a complex or contested fault, or where the dealer is fighting it
  and you want someone to run the case.
• Trade-offs: the highest cost of the three; for many faulty-car disputes a demand letter and,
  if needed, a tribunal application you lodge yourself is enough.

Which should you choose?

If you are confident putting it to the dealer and your state agency yourself, that path is free. If you want a
correct, firm demand that applies your state’s law and may get a refund without a hearing, the $29 letter is the
middle path. If the car is high-value or the dealer is fighting hard, a lawyer is worth considering.

What this demand is — and is not

A demand to the dealer is a formal written claim setting out the faults, your rights and a deadline to refund,
replace or repair. It creates a dated record and often resolves the matter. It does not, by itself, force the dealer
to act, and it is not a tribunal application — but it is the step that usually comes first and supports a tribunal
claim if the dealer refuses.

Where Claim Done fits

Claim Done is a document drafting service, not a law firm, and does not give legal advice. It drafts your demand
to the dealer from your answers for a flat $29, you approve it before it is sent, and it does not lodge a tribunal
application or act for you.
Start your faulty car
demand.

Frequently asked questions