Consumer wins settlement for car - Dubove Pty Ltd trading as Esprit Autos

Issue Date: - Thursday, 27 November 2008

Consumer Protection has achieved an out of court settlement on behalf of a consumer who bought a substandard 1979 Jaguar XS Coupe from a Victoria Park car yard.

Dubove Pty Ltd, trading as Esprit Autos of Albany Highway in Victoria Park, agreed to settle the matter out of court for an undisclosed sum.

The car’s engine failed the same day the 18-year-old consumer purchased it. Consumer Protection’s automotive engineers examined the car and found that the breakdown was due to a corroded head which caused the head gasket to leak.

Repair costs for the vehicle, purchased for $5250, were estimated at several thousand dollars.

Consumer Protection Commissioner Anne Driscoll said she pursued this matter on behalf of the buyer as it went to the heart of what consumers expect and are entitled to from the motor vehicle sales industry.

“Simply because a vehicle is not covered by a statutory warranty under the Motor Vehicle Dealers Act, in this case as it was an older vehicle, does not mean that dealers are absolved from their obligations to their customers,” Ms Driscoll said.

“The Fair Trading Act requires that all vehicles have to be of merchantable quality. A vehicle, which has a major breakdown soon after purchase, is unlikely to be of merchantable quality.

“This case should serve as a reminder to motor vehicle dealers to ensure that all of their vehicles, regardless of statutory warranty, are safe and in good mechanical order. Consumers are entitled to expect at least the minimum standards when they purchase vehicles from a licensed dealer and Consumer Protection will pursue those rights when they are refused.”

For assistance with motor vehicle matters consumers should telephone 1300 30 40 54 or email consumer@docep.wa.gov.au .