Remedies

The CRA specifies a number of remedies for the consumer if the vehicle they are in the possession of is found to have a fault:

1. Short term right to reject – The consumer can reject the vehicle and receive a full refund if a fault exists, or any of the expectations have not been met, within 30 days from the later of:

  • The transfer of ownership (or possession, if hired or under a purchase or lease agreement) as stated in the agreement.
  • Delivery of the vehicle
  • Notification of installation

2. Repair or replacement – If there is a fault within the first 6 months the consumer can demand that the trader repairs or replaces the vehicle. The trader has “one shot” at repairing the vehicle, this must be actioned “at no cost to the consumer, within a reasonable time and without causing the consumer significant inconvenience.”

3. Rejection or price reduction – If the repair is not successful or another fault appears the consumer can reject the vehicle for a refund. The trader is allowed to make a deduction for use of the vehicle, the calculation of which must be consistent for all customers. Alternatively the consumer can keep the vehicle but the trader must apply an “appropriate” price reduction agreed to by the consumer.

4. No legal remedy – There is no legal remedy for a consumer if they find fault with a vehicle 6 years or more after the date of delivery, even if they have proof that the fault was there within the first 6 months.