Purchased Used Car from Dealer and Issues First Drive. Now Been 6 Weeks Getting Repaired. Options?

We purchased a 6 year old car with finance from a dealer. This is also our first car so can imagine the frustration.. Engine issue didnt show up in test drive but showed up after purchase on first big drive on highway. Car loses power and slows down to 60ish km/h with 2 warning lights on. Went to pick up car on Monday but car wouldnt turn over and when checked with computer it now has a different issue. They have had the car now for 6 weeks this Friday. This would classify as a major fault. Car was $13k but with extra costs of stamp duty, broker fee, added external warranty etc it ended up being $16k. Basically ready to pull the plug on this car, cancel the contract and get something else. Unfortunately the dealer has nothing else in the price range that suits us.

What are our options?

Ideally we cancel contract and get them to cough up the extra money we paid to get us back to the position we were in before the car. Saw something about this on ACCC a few weeks back and now cant find it..

Any help appreciated. Thank you.

Comments

  • +13

    A major fault that cannot be repaired within 6 weeks is definitely grounds for a full refund. Wouldn't want it back even if "fixed" in that scenario.

    • +1

      Yeah dont doubt we can get a refund but more concerned if we would be out of pocket the extra few thousand $. Not a small amount to cop for a single income family, or anyone really.

    • +1

      The finance owing would make this a harder proposition though

      If financed total is $16k, the payout figure will be higher than that (early termination fee, etc etc)

      If OP got a refund (which would be for the $13k, no way you're getting a refund on stamp duty, finance DOF fees etc), they're going to be out of pocket to pay out the loan

      • +1

        Here under Reimbursement for Damages and Loss https://www.fairtrading.nsw.gov.au/buying-products-and-servi…

        "You can ask for reimbursement for damages and losses you suffer if the supplier could have reasonably anticipated the problem. This is in addition to a repair, replacement or refund.

        What is covered?
        Reimbursement should put you in the position you would have been in if the products or services had done what they are supposed to under consumer guarantees. This is usually a financial cost, but can also include lost time or productivity."

        Now from our point of view had the dealership taken the car out on the highway they would have realised pretty quickly that it had an issue that made it not fit for sale and something that no one would have purchased had they known of the issue.

        • "You can ask for reimbursement for damages and losses you suffer if the supplier could have reasonably anticipated the problem"….

          I somehow dont think the dealer/supplier would normally take the car on a "big driive down the highway" for a test drive and so could not have anticipated the problem. Hence this clause doesnt necessarily apply.

          But this is why the dealer gives a warranty.

          And believe me, this is a major issue and emabarrassment for the dealer as well.
          Any car that even hints of problems is usually wholesaled off to dodgy dealers.

          OP should try to negotiate swapping the car for a different one given all the circumstances and have the dealer take the faulty one back.
          That is not an unreasonable solution for both parties.
          Been there and done that myself.

    • +2

      Incorrect!
      Major fault is something like engine failure!
      The delaer can easily say they are waiting on parts.
      Just because OP is waiting 6 weeks doesnt mean or justify a "major fault".

      Besides OP hasnt told us what car they purchased.
      If is a European car (especially Opel made) its no wonder they are having such issues!

      Regardless OP should discuss with Dept of fair trading as to thier rights.

      But firstly OP should try to negotiate with the dealer to supply a different car and take the faulty one back (at purchase price).

      Please remember that this is USED CAR
      NOT a new car!!!

      • If the parts are not available in a reasonable time, then they can’t repair it in a reasonable time therefore they need to replace/refund.

  • +1

    We need to give notice that you reject the vehicle and demand a refund.

    • This can be done BEFORE taking possession of the car and taking it away for a "big drive down the highway".

      A bit late now.

      And we dont know if OP somehow contributed to the problem occurring either
      Just sayin…

      • Absolutely wrong - it should be done once the major fault is detected.
        A failure to do so in a timely fashion can mean you lose your rights under the ACL.

  • For a 6 year old car thats pretty bad. I'd be pushing for that refund as a major fault

    • For a 6 year old car thats pretty bad

      Depends on the car….

      • +11

        If its a Jeep 6 years is a good run.

      • +3

        they bought a jeep?
        .

        • -1

          Did not buy a Jeep. Not going to say what the car is however as people will say we should have known better haha. First car and thought we did our research, apparently not well enough to hear the stories.

          • +5

            @Ravensbane:

            Not going to say what the car is

            Why not?

          • +1

            @Ravensbane: see above ^

            • @Protractor: Bahaha yes had never heard the term "Craptiva" till now… Sigh..

              • +12

                @Ravensbane: facepalm

              • +4

                @Ravensbane:

                had never heard the term "Craptiva" till now

                You can't have researched much. There are plenty of used car reviews on them.
                Here is an example https://youtu.be/RtctskZJFpE?si=3tzFtig7d2kVU6Uk
                We had a diesel then a V6 (both company cars).
                The diesel couldn't maintain 100kph on the run up the hills from Wollongong to the start of the M6.
                The petrol averaged 16l/100km on ULP; 20l/100kph on e85.
                We were lucky enough to hand both back at 30k km.

                Push hard for a refund. Put any financial losses down to "life lessons".
                PS: Borrowing money for a 6yo car? That's nuts

                • @brad1-8tsi: Unfortunately, median savings for Aussie is under $4k, imagin getting a $4k car?

                  • @boomramada: I am not sure about that.
                    Yes lots of people not having much savings but I am sure "Median" would be having a lot more savings than $4k.

                  • +1

                    @boomramada: "imagin getting a $4k car?"
                    Last car I bought myself was $400. It gets less use now that all 3 children have got P's and their own cars. Bought in March 2020 just as rona was taking off, but still
                    .

                  • @boomramada: Surely that can't be true.

                • +1

                  @brad1-8tsi: Single income household trying to get a decent car. So either yeah get a $4k car, wouldnt be taking my 3 kids in that thanks, or save for a few years to get a $15k car. Doesnt help now does it? And cant afford a 'new' car on finance or otherwise.

                  • +5

                    @Ravensbane: NGL pretty much Any $4k Toyota, Kia Sorento or Hyundai Sant Fe circa 10-12 years old would sh1t all over a Craptiva for reliability. Cannot kill them (my Sportage is at 290,000k's and never missed a beat). Yes the Holden would've been nicer and shinier but the engineering was terrible.

                    • @Drakesy: Unfortunately, when you looking for $4k car, most avalable are absoulte trash. My second car which done 250k since new, probably worth 4k too, but I arent selling it.

                    • @Drakesy: Handy to know now haha. An annoying and expensive lesson for us to learn but it is what it is.

                      I had actually looked up professional reviews of the specific model craptiva prior to going through and there was no real engine complaints apart from sluggish and not great mpg, due to diesel, and older styling due to them being rehashed every year for 10-12 years or so.

                      Didnt look up individual complaints as with anything the ones that get the bad ones are the loudest. And with so many millions sold there were going to be complaints. Have seen some complain about Nissan Pathfinder for example and yet seen others say zero issue. Bet you can find complaints for near every car ever made, and likely many with none.

                      Again, lesson learned.

                      • +1

                        @Ravensbane: Oh geez, now reading it is a Craptiva, do yourself a favour and beat their door down for a refund. You do not want that car, fixed or not. A friend had fun going through VCAT with a 6 month old Craptiva that shat itself.

                  • @Ravensbane: Perhaps don't drop $5k on a tv? Christ on a bike people have weird priorities.

              • @Ravensbane: Know 2 people who purchase craptivas
                Both had engine and transmission issues so bad they required replacements

    • OP hasnt told us what used car they purchased nor how many kms it has done.

      I think that would add 'much light" to the situation.

      • They’ve said it’s a Captiva.

  • +4

    broker fee, added external warranty

    Got you hook line and sinker unfortunately. Demand a refund.

  • Dealer as in manufactor dealer, or car yard?

    • Car yard.

      • Not surprised then…

  • +8

    We purchased a 6 year old car with finance from a dealer

    Friends don't let friends buy cars on finance.
    If you can't pay cash you can't afford it.
    The only exception is an EV novated lease where the tax breaks are rather large.

    Ideally we cancel contract and get them to cough up the extra money we paid to get us back to the position we were in before the car.

    The most you'll get is the value of the car. The brokerage fees etc were lost the day you signed the contract.

    How many Km's out of interest as over 150,000 they're exempt from having to handle the warranty (in WA)

    Also spending 20% of a car's value in brokerage fees is a heinous waste of money, woud've been better to drop back a couple of rungs in cars.

    • +3

      Not sure why Drakesy's comment was down voted unless the truth hurts that much.

      • +1

        Ozbargain can be a funny place.

      • hopefully because they suggested there was benefit to novated lease on EVs

        • NGL kinda interested in the type of car.

            • +2

              @spackbace: Lol,

              Ok i have zero sympathy now.
              Someone hasn't done their research, let alone this is plastered all over Ozbargain to stay away from them.

              Dealer was probably just happy to see the back of it. OP should've understood there's a reason a 6 year old car was so cheap.

              • @Drakesy: Well unless you are also suggesting that Volkswagen, Mazda, Honda, and Subaru also all have huge issues then the age of the car for the price isnt relative in this situation. Reason I listed those is in my area there are 2016 models of all those in the same price range as ours.

                • +4

                  @Ravensbane: The age of the car to the price is very relevant. I mean, 172,000km on a 7-year-old car, when especially we had the COVID years as well, is utterly ridiculous.

                  Why on earth buy a car as new as that with that much mileage on it to begin with?

                  So yes, age is very relevant when factoring in price as it relates to mileage and wear on the car.

                • +3

                  @Ravensbane: Then why the hell did you buy a Captiva instead of any of the alternatives? Why did you not do one google search on something you are financing for $16k?

      • Ive found many OBers totally unreasonable in thier expectations and respect for "reality"

        Too many expect far too many entitlements

    • +1

      Mates, some people need a car but can't afford it cash.
      But in general I agree, go for a cheaper car if it means you can pay cash.

    • +1

      In NSW a statutory (3 month) used car warranty must be offered for used cars under 160,000km AND less than 10 years old.

      NB: Extended warranties are offered by third party organisations. They are just another form of 'insurance"
      They are very difficult on which to claim and often involve high excesses when you read all the conditions.

      So they have nothing to do with the dealer at all… other than the dealer selling them and making more money from you.

      • Completely agree that it gets to a point where the dealer can't be expected to cover a car of that age.

        Just wait til lthe Ozbargainer choir start chanting "BuT My ConsUMEr RiGhtS!"

  • +1

    Quote
    ( Les McQueen - [ex] Crème Brûlée )
    " It's a shit business"

  • +4

    Classic Captiva buyer. Didn't do a single google search.

    • +1

      Probably with 150k + kms as well 😳

      Edit - just saw below 170k + 😳😳

      Edit 2 - Diesel as well and probably an ex city only car.

      • +2

        A recipe for a complete POS.

  • +1

    people complain old cars give problems after age, But hey new cars are not problem free either, (just cost a bunch of money to begin with)

  • +1

    FWIW V6 Alloytec Captiva's had issues with timing chains stretching. How many Ks on the car - is it covered under stat warranty? If so then it should (technically) be more straightforward to return for a refund.

    Try to get everything written and documented, i.e., send them e-mails, request a record/invoice of what was done (even if zero cost/warranty repair). Just in case you eventually have to take this further, this will be the only evidence you have against your case.

    • Also, is this an independent car yard? Or a brand name franchised dealership?

      • Ks are 172,000ish. Issue light said something about diesel particle filter but dealership says its something else, but they dont seem to really know either. Car yard is possibly franchised based on name but they actually trade under 2 names one is a car brand and other is simply a location based name so who knows really.

        • +2

          29000km per year. Might have been a rep car
          .

          • +1

            @Nugs: Toyota sales rep. Got a bonus every month. When ppl saw the Captiva log books they all bought a Toyota. Such is the reputation of Captivas I think the ACCC should just ban them.

  • +1

    Call the department of fair trading in the state you are in and ask them what options legally you have. they cannot advise what you should do, but will be able to tell you the law and your options.

  • Best to destroy it so no one else gets stuck with it. Just like that guy did with his Jeep.

  • If you have a steady solid job with good history, a novated lease may be a good thing and it's a good way to manage cash flow when you can't buy the car outright. You can also get novated leases for used cars. I got a brand new car on novated lease (40k worth). You can specify your annual KMs and negotiate residual value a bit. If you get an operating lease then everything is wrapped up into that: rego, insurance, fuel, servicing etc. I leased mine for 4 years and then paid out the residual of 14k during COVID when there were no cars available to buy which is not bad for something that could fetch 32k on the 2nd market

  • that's why I always do highway when test drive and bring my OBD2 scanner.

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