Issue Date:  -  Monday, 24 November 1997

Car dealer convicted over used car warranty

The Ministry of Fair Trading today prosecuted a Victoria Park car yard and its managing director for illegally waiving a customer's motor vehicle warranty.

Leith Trayton Elvish, of Burswood, and Dubove Pty Ltd, trading as Esprit Motors, were each fined $600 in the Perth Court of Petty Sessions and ordered to pay costs totalling $459.

Section 48 of the Motor Vehicle Dealers Act prohibits the waiving of used car warranties, except with the consent of both parties and the Commissioner for Consumer Affairs.

All second-hand vehicles which sell in WA for more than $4000 must carry a warranty of three months or 5000km, whichever comes first.

The charges of making a false and misleading representation concerning the exclusion of a warranty or right, arose from the sale in July last year of a Mercedes Benz for $33,000.

The Attadale buyer accepted the deal, on the condition that the Mercedes was fitted with air conditioning and four new tyres. He claimed he was never told that the Commissioner's approval was required for a warranty to be waived.

Despite the contract including the words "Wholesale As Is No Warranty", no application was made to the Ministry of Fair Trading for the warranty to be waived.

In this instance the dealership had sought to remove the consumer's rights to a "used-car warranty". The consumer was unaware of his rights until he contacted the Ministry because Esprit Motors had still not fitted an air-conditioning unit.

Acting Commissioner for Consumer Affairs, Mark Bodycoat, said the prosecution sent a message to WA motor vehicle dealers that the Ministry took a dim view of car yards which flouted the warranty waiver rule.

"This section of the Motor Vehicle Dealers Act exists to ensure consumers' rights after their initial purchase are protected," Mr Bodycoat said.

"For the unwary buyer - who often knows little about mechanics - this case also serves as a warning that waiving your warranty in return for a price discount is fraught with danger.

Media contact:
Neil Stanbury
Tel: (08) 9282 0613