Lemon Laws Western Australia: Faulty Car Refund or Replacement (2026)

Claim Done is not a law firm and does not give legal advice. This page is general information about the law as at 19 October 2026.

Your rights in 60 seconds

• Two laws, not one. The Australian Consumer Law (ACL) is federal and covers new and used cars from any dealer in Australia. The WA used-car warranty is extra protection on top. The WA Act says it does not limit any right you would otherwise have (Motor Vehicle Dealers Act 1973 s 47).
• Major failure: your choice. You can reject the car and choose a full refund or a replacement (ACL ss 259(3), 263(4)).
• Minor failure: repair first. The dealer must fix it within a reasonable time, or you can have it fixed elsewhere and claim the cost, or reject the car (ACL s 259(2)).
• WA used-car warranty. A qualifying used car priced at $4,000 or more is covered for 3 months or 5,000 km, or 1 month or 1,500 km for older or higher-kilometre cars (ss 34-34F).
• No cooling-off in WA. Once you and the dealer sign, the contract binds you.
• “Sold as is” does not remove ACL rights. Terms that try to exclude the consumer guarantees are void (ACL s 64).
• The forum is a court: the Magistrates Court of Western Australia, consumer/trader claims up to $75,000.

Which state’s law applies to you

It is the state where the dealer is located that matters, not where you live. The dealer’s state decides which state dealer warranty applies, which regulator handles your complaint, and which tribunal or court hears your claim. If you bought from a dealer in Perth, Bunbury, Kalgoorlie or anywhere else in WA, this page is for you, even if you live in Adelaide or Darwin.

It works the other way too. If you live in WA but bought from a dealer in another state, online or in person, use that state’s page, for example lemon laws in South Australia or lemon laws in the Northern Territory. The lemon laws Australia guide links to every state. The ACL applies wherever the dealer is.

The interstate rule. In some states car disputes go to a tribunal that is not a court. Under Burns v Corbett [2018] HCA 15 such a tribunal cannot decide a dispute between an individual or sole-trader dealer and a buyer who lives in a different state; in New South Wales and Victoria the claim then goes to a court. Companies and territory residents are not affected. Queensland’s QCAT currently hears these disputes, because the Queensland Court of Appeal has held it is a court (Owen v Menzies [2012] QCA 170), although two appeals challenging that are pending. In WA the problem does not arise: the forum is already a court, so it can hear your claim whether you live in WA or interstate.

Your rights under the Australian Consumer Law

The ACL is Schedule 2 to the Competition and Consumer Act 2010 (Cth). Cars, new or second-hand, are “goods” under it (ACL s 2(1)). You are a “consumer” if the car cost not more than $100,000, or if it is the kind of vehicle ordinarily bought for personal or household use, which covers the family car even above that price (ACL s 3(1); Competition and Consumer Regulations 2010 reg 77A).

Acceptable quality (s 54)

The dealer guarantees the car is fit for all the purposes cars like it are commonly used for, acceptable in appearance and finish, free from defects, safe and durable. The test is what a reasonable consumer, fully aware of the car’s condition including hidden defects, would accept, having regard to the nature of the car (such as its age and kilometres), the price, any statements on labels, anything the dealer or manufacturer told you, and any other relevant circumstances. An old, cheap car need not be perfect, but it must be safe and do what a car of its age and price should. The guarantee does not cover a fault the dealer specifically pointed out before you agreed to buy, or one your own examination before buying ought reasonably to have revealed (s 54(4)-(7)).

The car must also match its description, such as the model, year and kilometres advertised (s 56), and be fit for any purpose you told the dealer about, such as towing a particular caravan (s 55).

What is a major failure (s 260)

A failure is major if any one of these applies:

• a reasonable consumer who knew about the problem would not have bought the car;
• the car is significantly different from its description, sample or demonstration model;
• it is substantially unfit for its normal purpose, or for a purpose you told the dealer about, and cannot easily be fixed within a reasonable time; or
• it is unsafe.

Several minor faults can add up to a major failure. For contracts made on or after 18 December 2020, two or more failures count as a major failure if a reasonable consumer who knew about all of them, taken together, would not have bought the car (s 260(2)-(3)). The ACCC’s industry guide gives examples such as a car immobile within 60 days and not repaired within a reasonable number of days, and an engine seizure not repaired within five weeks.

Refund or replacement is your choice

For a major failure you can reject the car, and the dealer must act “in accordance with an election made by the consumer”: refund what you paid, including the value of any trade-in, or replace the car with one of the same type and similar value if one is reasonably available (ss 259(3), 263(4)). A credit note is not a refund (s 263(5)). The ACCC says a refund for a major problem should be the full amount you paid (ACL s 263(4)). If the car cannot be driven, or returning it would cost you significantly, the dealer must collect it at its own expense (s 263(3)).

For a minor failure the dealer chooses whether to repair, replace or refund (s 261).

How long you have to reject (s 262)

There is no fixed number of days or kilometres. You must reject within the period in which it would be reasonable to expect the fault to show up, having regard to the type of car, its likely use, how long it should last and how much use it should take before such a fault appears. The ACCC’s guide says the warranty period can end before the rejection period ends, so your ACL rights can run past the WA warranty. Act promptly anyway.

Extra costs, “sold as is” and the manufacturer

• You can claim damages for reasonably foreseeable loss, such as towing, inspection reports, hire cars, and registration or insurance wasted while the car sat broken (s 259(4)).
• A term that tries to exclude the guarantees is void (s 64). Writing “as is” on the contract is not enough; only faults specifically drawn to your attention are excluded.
• The ACCC says the dealer “must not tell the consumer to go to the manufacturer for a remedy”. The dealer can recover its costs from the manufacturer (s 274). You can also sue the manufacturer, but only for damages, not a refund or replacement (ss 271-272).
• Misleading you about your rights can breach s 29(1)(m), which carries civil penalties.

If the car is on finance

• If the dealer arranged the loan with a lender it regularly works with (a “linked credit provider”), the lender and dealer can be jointly liable for your loss when the car fails a consumer guarantee (ACL s 278), with the lender’s share capped at the amount financed plus interest and costs (s 281).
• If you validly reject the car and the sale ends, you can terminate a tied loan with a linked lender and recover interest you paid under it (National Credit Code s 135). Tell the dealer and the lender in writing.
• The ACCC warns against stopping repayments while a minor fault is fixed. If you cannot pay, give the lender a hardship notice, orally or in writing (National Credit Code s 72); a refusal must name the Australian Financial Complaints Authority (AFCA).

The WA dealer statutory warranty

Sections 34 to 34F of the Motor Vehicle Dealers Act 1973 (WA) make the dealer repair defects in qualifying used vehicles at its own expense. Before the sale the dealer must give you an information statement in Form 5A (“The Used Car Warranty” or “The Used Bike Warranty”), or Form 6 if the vehicle is not covered (Motor Vehicle Dealers (Sales) Regulations 1974 reg 7). The notice on the car (Form 4) must say whether the warranty applies and whether it is a registered repairable write-off.

Check the category carefully. Category 2 applies if either the age test or the kilometre test is met: a 6-year-old car with 160,000 km gets 1 month or 1,500 km, not 3 months. Consumer Protection’s warranty table puts the two tests on one row in a way that can read as if both must apply; the Act (s 34C) says “or”, and the Act is what counts.

The Form 5 excluded-defects notice

A dealer can exclude defects it knows about by attaching a Form 5 notice that lists them “with reasonable particularity” with its estimate of the fair repair cost. A listed defect is excluded only if the notice was attached as required and you signed a copy at or before the sale and were given one (s 35). The form itself says “THE DEALER REMAINS LIABLE FOR THE REPAIR OF ANY DEFECTS NOT LISTED”, and that just “engine” with an $800 estimate is not reasonable particularity. If the dealer’s estimate is below the fair cost, you can recover the difference as a debt.

Which vehicles are covered

The Act covers passenger cars and derivatives, motor cycles, camper vans, four-wheel-drives, goods vehicles, and passenger vans seating up to 8. Form 6 lists vehicles that do not get the warranty: caravans; off-road motor cycles not built to carry passengers; goods vehicles with only one row of seats (such as a single-cab ute); vehicles seating more than 9 adults including the driver; and multi-wheeled open vehicles ridden astride. New cars and qualifying dealer demonstrators (licensed to the dealer, used for demonstration and still under a manufacturer’s obligation greater than s 34) are also outside it (ss 5, 34A). Every car outside the warranty still has full ACL rights.

If the Commissioner considers a dealer-sold vehicle was substantially different from how it was represented, or no window notice was displayed, the Commissioner (not the buyer) may apply to the Magistrates Court to rescind the sale, with orders that can extend to linked finance (s 41A).

Cooling-off in Western Australia

There is no cooling-off period for car sales in WA, new or used. If you cancel without a legal reason, the standard contract lets the dealer claim pre-estimated damages of up to 5% of the total purchase price, which must be a genuine estimate of its loss (Motor Vehicle Dealers (Sales) Regulations 1974 reg 13B, Schedule 5 cl 8). Rejecting a car for a major failure under the ACL is not cancelling: it is a legal right.

Compensation or guarantee fund

None for dealer sales. The Motor Vehicle Dealers Act has no compensation fund for dealer defaults, so if a dealer closes down there is no state fund to claim from. Put everything in writing early and act while the dealer is trading. One related protection: if you bought at a car market and the seller did not pass clear title, you can recover your loss from the car market operator as a debt (s 40A).

New cars in Western Australia

New cars have full ACL protection, including a refund or replacement for a major failure, whatever the manufacturer’s warranty says. The ACCC says voluntary warranties “cannot replace, change or take away” your automatic rights. WA adds its own rule: on a dealer’s sale of a new vehicle, the Act implies a condition that it is of merchantable quality (except defects pointed out before the contract or that a pre-contract examination ought to have revealed) and matches its description, and terms excluding these are void (s 46). This does not extend to hire-purchase agreements under the Hire-Purchase Act 1959. A recall does not replace your ACL rights; check vehiclerecalls.gov.au.

Private sales and auctions

• Private sales: no WA statutory warranty and no ACL consumer guarantees. Consumer Protection says you buy “at your own risk”.
• Backyard dealers: a person who sells or exchanges 4 or more vehicles in any 12-month period to or with non-dealers is presumed to be carrying on the business of selling vehicles unless they prove otherwise (s 5B).
• Auctions: a car auctioned for a private seller carries no statutory warranty and most ACL guarantees do not apply; clear title, undisturbed possession and no hidden debts still do. The ACCC’s guide says an eBay sale is not a “sale by auction” for the ACL.

Bought privately? See private sale rights in Western Australia

Evidence checklist

1. The signed contract and tax invoice, with the dealer’s name and licence number.
2. The Form 5A or Form 6 statement, the window notice (Form 4) and any Form 5 notice you signed.
3. The advertisement (screenshot it now) and messages about the car’s history or condition.
4. Odometer photos on collection day and when each fault appeared, with dates.
5. The compliance plate or build date, to show the car’s age under s 34F.
6. An independent mechanic’s report or quote for each fault.
7. A log of every call, email and text with the dealer.
8. Receipts for towing, inspections, repairs, hire cars and wasted registration or insurance.
9. Any finance contract and the lender’s name.
10. Your Consumer Protection complaint reference number.

The 5 steps

Step 1: Contact the dealer

Phone the dealer, then email them the same day. Describe each fault, when it appeared, the odometer reading and what you want done. Give them 24 hours to respond, and keep a record of every call and message. Form 5A tells buyers to “ALWAYS CONTACT THE DEALER FIRST TO DISCUSS WARRANTY REPAIRS”.

Step 2: Send a formal demand

If the dealer does not respond or refuses, send a formal letter of demand. Ours sets out your rights under the Australian Consumer Law and the WA Motor Vehicle Dealers Act, lists every defect with dates and kilometres, states your choice of refund, replacement or repair, and sets a deadline.

Send the dealer a formal demand – $49

Step 3: Complain to Consumer Protection

If the deadline passes, complain to Consumer Protection, part of the Department of Local Government, Industry Regulation and Safety (LGIRS), using the Retail and automotive complaint form. Attach your demand letter to show you tried. Consumer Protection assesses the complaint, may write to both of you asking the dealer to contact you within seven business days, and conciliates some cases. It says it cannot force a trader to fix a problem, and cannot assist once a matter has gone to court, so complain before you file.

For a dispute about the s 34 warranty, the Act also lets the Commissioner decide the matter before court proceedings start: it can order the repair done elsewhere after quotes and order the dealer to repay what you spent on warranty repairs, and the order can be filed free in the Magistrates Court and enforced as a judgment (ss 36-37B). Consumer Protection’s complaints page does not describe this power, so ask about it rather than expect it. WA has no dealer compensation fund.

Step 4: Send the final demand

When Consumer Protection gives you a complaint reference number, send the final demand. It quotes your first letter, the dealer’s response (or silence) and the reference number, and gives a short final deadline before you go to court.

Send the final demand – $49

Step 5: Lodge a court claim

Lodge a consumer/trader claim in the Magistrates Court of Western Australia, which hears claims between a consumer and a trader up to $75,000. Up to $10,000 you can use a minor case claim (Form 4): less formal, and lawyers need the court’s permission to act. Larger claims use a general procedure claim (Form 7). Both are lodged through the eCourts Portal. A dealer served in WA has 14 days to respond; a defended minor case is listed for a status conference. The court also has the Commissioner’s warranty powers (s 38). Ask for the remedy you chose, refund, replacement or repair costs, plus your foreseeable losses.

Prepare your court claim – $97

Where your claim goes

Fees are the court’s individual rates effective from September 2026, including the $3.00 Suitors’ Fund fee. Bailiff service costs $117.50 plus travel. Entities pay more, and the fee list shows lower rates for “eligible individuals”; check it before filing. A Commissioner’s determination over $1,000 can be reviewed by the State Administrative Tribunal.

After you win: getting paid

Your claim is decided by the Magistrates Court, so a judgment in your favour is already a court order. But the court does not enforce it automatically: if the dealer does not pay, you apply for enforcement.

How to apply

Complete and lodge Form 6 (Application or Request to a Court) with the application fee, which is payable once only. Enforcement applications must be made within 12 years from when judgment was given. After 6 years, you need the court’s leave for a seizure order or an arrest warrant (Form 7 with a Form 2 affidavit). The orders available include a time-for-payment order, an instalment order, an earnings appropriation order, a debt appropriation order and a property (seizure and sale) order.

Debt appropriation order (bank account)

This order takes money held for the debtor by someone else, such as a bank. Apply by Form 6 with a Form 2 affidavit; the court considers it without a hearing. Serve the order on the bank by ordinary service. It takes effect as soon as it is served, and if the debt is due in full the bank must pay within 7 days. The bank can object on Form 20.

Earnings appropriation order (wages)

This order is only available against an individual, not a company. It can only be made after an instalment order has been disobeyed and cancelled, and only at or after a means inquiry. The court should make sure the order does not impose unreasonable obligations on the debtor, having regard to their means. It takes effect when served on the employer, and only one can be in place at a time. The employer may keep $10 from the first payment and $5 from each later one for expenses. You must tell the employer immediately when the order is no longer needed.

Property (seizure and sale) order

A bailiff seizes and sells the debtor’s property. The order operates for 12 months after it is made and can be extended.

Finding out what they own: means inquiry

Apply by Form 6 through the eCourts Portal. The summons must be served on the debtor in person, by a bailiff or by you, at least five days before the hearing. If a debtor who was served does not attend, you can ask for a warrant for their arrest.

Enforce your order – $97

Questions people ask

Is there a lemon law in Western Australia?

No, WA has no separate law called a lemon law. A faulty car from a dealer is covered by the Australian Consumer Law, which gives you a refund or replacement for a major failure, plus the WA dealer warranty in the Motor Vehicle Dealers Act 1973 for qualifying used cars. The state warranty adds to the ACL.

Can I return a used car to a dealer in WA?

Yes, if the car has a major failure you can reject it within a reasonable time and choose a refund or a replacement under the Australian Consumer Law. For a minor fault the dealer can repair it first. WA has no cooling-off period, so you cannot return a car just because you changed your mind.

What is a major failure for a car?

A major failure is a fault so serious that a reasonable buyer who knew about it would not have bought the car. It also covers a car that is unsafe, significantly different from its description, or substantially unfit and not easily fixed. For contracts from 18 December 2020, several minor faults together can count as one.

Does the Australian Consumer Law apply to second-hand cars?

Yes, the consumer guarantees apply to second-hand cars bought from a dealer, judged against the car’s age, kilometres and price. An older, cheaper car need not be perfect, but it must be safe and reasonably durable for its age. Most guarantees do not apply to private sales or private-seller auctions.

I live in another state – which tribunal do I use?

You use the forum in the dealer’s state, not your own. For a WA dealer that is the Magistrates Court of Western Australia, a court, so it can hear your claim even if you live interstate and the dealer is a sole trader. If the dealer is in another state, that state’s rules apply.

How long do I have to reject a faulty car?

There is no fixed number of days. The Australian Consumer Law allows a reasonable time, judged by the type of car, its use, how long it should last and when such a fault would be expected to appear. It can run past the WA warranty. Reject in writing as soon as you know the fault is serious.

Can the dealer refuse a refund and only offer repairs?

Not for a major failure. You choose between a refund and a replacement, and the dealer cannot insist on repairs or a credit note. For a minor failure the dealer may repair, but if it refuses or takes too long, you can have it repaired elsewhere and claim the cost, or reject the car.

What does it cost to go to the Magistrates Court of WA?

For an individual, filing costs $199.50 for a $5,000 minor case claim and $502.00 for a $30,000 general procedure claim, on the court’s fees effective from September 2026. Bailiff service costs $117.50 plus travel. Complaining to Consumer Protection first is free.

What if the car was on finance?

If the dealer arranged the loan through a lender it regularly works with, the lender can be jointly liable with the dealer for your loss, up to the amount financed plus interest and costs. If you validly reject the car and the sale ends, you can terminate that linked loan. Keep paying while the dispute runs.

Can I get my money if I win and the dealer still won’t pay?

Yes, a court judgment can be enforced through the Magistrates Court if the dealer does not pay, and a Commissioner’s warranty order can be filed there free and enforced as a judgment. WA has no compensation fund for dealer sales, so there is no state fund if the dealer closes down.

Is there a cooling-off period for cars in WA?

No, WA has no cooling-off period for new or used car sales. The contract binds you once you and the dealer sign. If you cancel without a legal reason, the standard contract caps the dealer’s pre-estimated damages at 5% of the total purchase price.

How long is the used car warranty in WA?

It is 3 months or 5,000 km, whichever comes first, for a car up to 10 years old and 150,000 km. It is 1 month or 1,500 km for a car over 10 but not over 12 years old, or over 150,000 but not over 180,000 km. The car must cost $4,000 or more.

Sources

• Motor Vehicle Dealers Act 1973 (WA) (ss 5, 5B, 34-38, 40A, 41A, 46-48), checked 19 October 2026
• Motor Vehicle Dealers (Sales) Regulations 1974 (WA) (regs 5-7, 13B, Forms 5, 5A, 6), checked 19 October 2026
• Motor Vehicle Dealers (Prescribed Vehicles) Regulations 1974 (WA), checked 19 October 2026
• Australian Consumer Law (Competition and Consumer Act 2010, Schedule 2), checked 19 October 2026
• Competition and Consumer Regulations 2010, reg 77A, checked 19 October 2026
• National Credit Code (National Consumer Credit Protection Act 2009, Schedule 1), checked 19 October 2026
• Consumer Protection: Buying a used car, checked 19 October 2026
• Consumer Protection: Car warranties, checked 19 October 2026
• Consumer Protection: Cancelling a contract to buy a car, checked 19 October 2026
• Consumer Protection: Buying a new car, checked 19 October 2026
• Consumer Protection: What happens when you complain, checked 19 October 2026
• Consumer Protection: Contact, checked 19 October 2026
• Magistrates Court of WA: Consumer/trader claims, checked 19 October 2026
• Magistrates Court of WA: Monetary claims, checked 19 October 2026
• Magistrates Court of WA: Fees, checked 19 October 2026
• ACCC: New and second-hand cars, checked 19 October 2026
• ACCC: Motor vehicle sales and repairs industry guide, checked 19 October 2026

Prepared by the Claim Done content team. See also: bought a used car from a dealer and it’s faulty: what now?