Dealer Sold Damaged Car in Lieu of New

Ldealking10 on 22/05/2022 - 16:43
Last edited 24/05/2022 - 19:14

Hi Guys,
What you are about to read is bizarre! I need your suggestion in handling this matter. I bought my New SUV car from a dealer outside my state in Nov21.
This month I took it for a regular 1st service check-up and requested the service dealership near my home to check for the sensor-related error messages which recently started to appear whenever I drive in reverse.
After the dealer checked the car, they told me that there is evidence that this car had been damaged from the front passenger side they could see that the headlight assembly is cracked from a corner, and out of the 4 sensors in the front, the driver side sensor is working, middle 2 sensors are not working and the passenger side sensor was replaced by a replacement sensor but it can’t be established if that was procured legitimately or not as there is no record about how it was changed. There is damage to wiring in the front radiator as well. All in all, about 7 -8 K of the repair cost.
I called the Dealer Principal (DP) of the dealership who sold me the car and told him the entire story, he said he is willing to help me, and said this car was a part of a dealer swap (I think he knew everything and is just trying to save his face) and offered me to choose one of the below options:
1. DP will pay for the repair of the car and then I can keep the car
2. DP agreed to refund me all the money which I incurred in buying the car $71K (Deposit+Rego+StampDuty+Transit Cost)
The DP is NOT willing to give me a replacement car stating that he does not have that car in stock to offer me and even if he finds a car the price has gone up and I must pay an extra 8K to buy the same car and wait up to 6 months to get it.
This matter is made worse as I bought the car from a different state so I don’t know what are my options in this case I meant raising it to an authority etc would be of any help?
What do you suggest as the best way to handle this issue without incurring any more costs by me?

  • Created a poll as suggested by a member.

Update 24/05 - On further pressing for a replacement car DP suggested that he can't do anything further and requested me to go to the consumer helpline. He wants to genuinely help and asked me to take time and decide, he had no issues with refund and repair at all.

The latest PPSR report was checked on the car and no issues were found in the report. The repair option is getting the car checked by local dealership and then quoting for all items needs replacement, as the parts are plastic, like headlight assembly, and 2 sensors which can be easily replaced, I am thinking to give this a go and see if this resolves the error messages. The DP said to forward the quote to him so that he can get it approved by their insurance provider.

Refund and buy a new car - Checked with many dealers, the new car market is extremely tough atm, and SUV cars can take 12 to 18 months to arrive. The price has already increased up to 10K for the same model, and even if I book any car at the current price it will be increasing as cars take a lot to be delivered.

Poll Options expired

  • 4
    Get the car repaired and afterward seek compensation from the dealer as he clearly did not comply wi
  • 534
    Get a refund for the money spent on acquiring the car.
  • 20
    Escalate the matter and ask for a replacement car without paying anything extra + wait up to 6 month
Automotive

Comments

  • CrazyBargainCatcher on 22/05/2022 - 16:46
    +16

    Refund and buy Model Y.

    • FiDad on 23/05/2022 - 08:40

      Is there confirmed sale date of model y in Australia. I think you cant even put an order for it now

      • CrazyBargainCatcher on 23/05/2022 - 10:00
        +2

        Nope, but it's already approved for sale, they were testing sales a few weeks ago, any time now. Get in early and wait times will be short

        • FiDad on 23/05/2022 - 11:14

          i am already in the queue since a year ago and also put a model 3 order in last week with wait time of 9-12 months. If Model y can be delivered in same time frame i might cancel this order but i doubt it

  • pharkurnell on 22/05/2022 - 16:49
    +35

    Is this a trick question?

    Keep a broken car
    or
    total refund…

    I'll get back to you once I come too after my brain blue screened.

      • pharkurnell on 22/05/2022 - 16:56
        +55

        Its not tricky at all… What is tricky about it?

        Your broken car when you go to trade it will be a accident damaged car worth much less.

        Get your money back. - they have offered money back… most people would have fight to get money back

        • ozbargainsam on 22/05/2022 - 17:24
          -4

          Let's see.

          Option 1: OP gets the car repaired and they're out of a car for a couple of weeks (maybe negotiate for a loaner). But they'll have a working car with albeit with a repair history.

          Option 2: OP gets a full refund. They have the money…but no car. Same car is more money. Any new car option is probably several months away.

          Explain to me how this is 'durr take the money' kind of straightforward.

          • pharkurnell on 22/05/2022 - 18:11
            +18

            @ozbargainsam: Would you pay full $ for a damaged car? Na… didnt think so.. OP did… repaired or nott, its still damaged and should be 25k cheaper to start with.

            takes the money and buys something else. Doesnt need to be a 80k car which is why the dealer 'says' we dont have any more of em…

            • ozbargainsam on 23/05/2022 - 17:36
              -1

              @pharkurnell: This is the answer you needed to provide originally. As it was demonstrated by the OP, if the solution was clear in their mind, a) the post wouldn't have been made, and b) they wouldn't have been confused at your original response.

              So in case it wasn't obvious: I was playing devil's advocate.

          • abb on 23/05/2022 - 08:50
            +8

            @ozbargainsam: OP is essentially getting an 18 month car rental for free. Take the refund. Dealer knows they broke the law.

        • dealking10 on 22/05/2022 - 18:39

          Hmm… I did not think about this aspect of what would happen down the line when I trade in.

          • Euphemistic on 23/05/2022 - 08:21
            +2

            @dealking10: If it’s repaired properly nothing will happen when traded in.

          • S2 on 23/05/2022 - 09:47
            -1

            @dealking10: Getting negged for being honest about an error. Typical internet.

      • MessyG on 24/05/2022 - 11:24
        +1

        Why has this been downvoted? Seriously OzBargain be kinder.

  • bloom on 22/05/2022 - 16:50
    +5

    Pretty sh!t but dealer will likely resell it as near new for $80k

    • dealking10 on 22/05/2022 - 16:51

      I am sure, he will, I only did 2000KM so he can easily sell it, even at higher price.

      • bloom on 22/05/2022 - 16:53

        If you want to keep it let them repair it and push for some free accessories

        • dealking10 on 22/05/2022 - 16:55
          +1

          My worry is what if in the future we found out more damage? Although I don't think they will sell a car so much damaged as new.
          the car was just 57KM when i received it.

          • pharkurnell on 22/05/2022 - 16:57
            +8

            @dealking10: if your worried wipe your hands of it.

          • thatonethere on 22/05/2022 - 17:43
            +2

            @dealking10: You could take it somewhere else for a detailed inspection for damage (looking at $500-$800) . However to do a proper assessment could mean that the car has to be partially disassembled… which is probably a lot more.

            Most places won't bother "just looking for damage" - they just do a visual inspection, look at the computer, have a listen and then make a quote with the caveat "more damage may be revealled once we remove panels and parts".

            I'd go for the full refund - then you won't worry about every niggling creak or squeak in the future.

        • ankor on 23/05/2022 - 13:05

          geez, I'd want about $30,000 worth of 'free accessories' if I were keeping a damaged car. The value on resale of that car would have tanked hardcore.

  • SF3 on 22/05/2022 - 17:00
    +2

    You need a poll.

    My pick is

    1. DP agreed to refund me all the money which I incurred in buying the car $71K (Deposit+Rego+StampDuty+Transit Cost)

    Then put it on ACA.

    • dealking10 on 22/05/2022 - 17:11
      +1

      ACA?

      • SF3 on 22/05/2022 - 17:25
        +4

        A Current Affair

    • dealking10 on 22/05/2022 - 18:47

      Thanks for the suggestion, just created the poll.

  • Ocker on 22/05/2022 - 17:03
    +2

    Dealer will fix the car then flick it onto the next mug buyer as "in new condition"

  • iNeed2Pee on 22/05/2022 - 17:03
    +9

    Take the money and run.
    Easy choice.

    Or happy to buy it from you for 25k.

  • Euphemistic on 22/05/2022 - 17:04
    +1

    Well you aren’t getting a new car any time soon (stock shortage, plus they apparently don’t wan to give you one).

    So if you want a new car now you get it repaired. If you can wait for a while to get a replacement get the refund. If it’s repaired it’ll still be good and under warranty doing anything more goes wrong it’ll get fixed.

    • dealking10 on 22/05/2022 - 17:17
      +1

      The dealership where I took the car for checking, has spent 1 day to find all the damage, etc and I have sent them a note to ask if they are confident that this is all the damage that happened. If the advisor says that this is all the damage then I can confidently get the car repaired and keep it with me.

      • iNeed2Pee on 22/05/2022 - 17:21
        +4

        But you asked for a new car?
        How can you be confident at all now that the car is not going to cause you issues down the track?

        Please just take the money and run!

        • SF3 on 22/05/2022 - 17:24
          +1

          How can you be confident at all now that the car is not going to cause you issues down the track?

          FOMO, scarcities, inflation, Stockholm syndrome.

  • dealking10 on 22/05/2022 - 17:21
    -1

    What about the consumer guarantees under the ACL Motor Vehicle Act….Should I ask the DP for compensation for selling me a damaged car?

    • vinni9284 on 22/05/2022 - 17:41
      +12

      The dealer offered a refund hence the government bodies wont waste their time as they are providing you with a remedy

      • dealking10 on 22/05/2022 - 17:48

        I was thinking the same. As per the ACL Act, consumers should have the choice in this care whereas what can I see the dealer is doing what suits him, and will probably sell the same car again for profit.

        • vinni9284 on 22/05/2022 - 17:50
          +1

          Agree. A replacement car is ideal however they're blackmailing you another $8K is highway robbery. Similarly, like the current new home builds where the builder is ripping off and want an additional $50K+ whilst the contract is signed and the building has commenced.
          At least you can opt out. I would take the refund and tell them to jump. 2 more interest rate rises coming, regardless if it is an EV, people have to afford them. If you can wait next year then you'll get it for a better price.

        • jayboi on 22/05/2022 - 19:26

          Just out of curiosity, what car is it?

          • websterp on 22/05/2022 - 19:55
            +5

            @jayboi: It's gotta be a Merc since this is OzBargain. Just consider this post being today's version of "I bought low-end prestige euro…"

            • Sterio on 23/05/2022 - 10:45

              @websterp: I doubt it would be a Merc. With their new dealership model he would be dealing with Merc not the dealer for such an issue.

  • vince088 on 22/05/2022 - 17:40
    +3

    they are offering you a full refund…. looks like you want compensation also? lol

    • dealking10 on 22/05/2022 - 17:42
      +1

      In reality, I want to get a replacement car, even if that takes a few months.

      • pharkurnell on 22/05/2022 - 21:35
        +3

        Your not going to get it.

  • RandomNinja on 22/05/2022 - 18:48
    +1

    Is it negotiable? If you're willing to keep the car, perhaps you can ask the dealer to cover both the repair cost and the price difference if it were sold in the post repair condition. Given it's possible car prices have gone up, this may not be much. You can always threaten to report them to Fair Trading or equivalent and see if that makes them more amenable?

    • dealking10 on 22/05/2022 - 18:53

      The DP offered to buy it back the way it is.
      Re the price difference, when I bought the car it had a decent discount on the MLP but I had no idea why there is a discount, it was an MY21 model and MY22 was already out so I thought this is the reason they have a discount on the car, its a regular practice by the dealers to clear up the stock.

      • RandomNinja on 22/05/2022 - 19:26
        +4

        Hmm, significant discounting seems unusual given the general shortage of new cars when you bought it last year. The dealer immediately offering a full refund seems to support your suspicion he knew about the damage… they usually fight tooth and nail to avoid that.

        While the dealer has offered to buy it back as is, based on above it appears you have everythign to gain by asking for more (assuming you want to keep the car).

  • thermos on 22/05/2022 - 19:45
    +1

    Get a refund

  • Brian McGee on 22/05/2022 - 20:09
    +1

    Get a refund for the Isuzu she-max as you don’t know what else has been damaged and how trustworthy can they really be to pay for the repairs.

  • JMosk on 22/05/2022 - 20:21
    +1

    There's no saying that there aren't more things wrong with the car that won't surface until later.
    They didn't just make a little mistake, they sold you something wrongly advertised.
    If the DP is so willing to help you then I think he knew more about it than he's willing to admit so I would press a bit harder to get the outcome that you want

  • Switchblade88 on 22/05/2022 - 20:35

    Isn't it consumer choice under Fair Trading laws for a major fault? From Fair Trading Qld:

    When you have a major problem with a product, you have the right to ask for your choice of a replacement or refund

    That would imply the OP should have the right to ask for a replacement (i.e. not pay any additional cost) and not have to accept a refund as the the dealer's 'offer'.

    If the wholesale price has gone up, then that's the dealer's tough luck.

    • dealking10 on 22/05/2022 - 22:24

      That is what my understanding is. I should not suffer due to the dealership's fault. It is a major fault as per below. Page 30 explains that the dealership failed to do their bit by hiding the fact that the car has pre-existing damage. When its a major fault then the customer is able to choose the most suitable option from repair, refund, or replacement car.

      https://www.accc.gov.au/system/files/1449_ACL%20Motor%20vehi…

      • bbinc on 23/05/2022 - 10:36

        Just read right through the ACL doc. There’s a lot of interpretation needed, but ACL is clear dealer needs a process for handling your very legitimate complaint, and may be liable for compensation if the value of the vehicle after repair is not as would be expected for an undamaged vehicle. DP can’t avoid that. You are a reasonable person, who purchased based on the DP’s description. Even if you accept the repair, if it is not ‘as new’ or has further fault, you will not have lost your right to refuse the vehicle or be given compensation. It’s not your problem DP can’t get an identical new MY21 and the closest thing is now dearer.
        I’d fight a bit harder to get what you understood you were buying at the time, for the agreed price, plus any extra costs you may incur for change over.

  • oscargamer on 22/05/2022 - 20:59
    +1

    Mercedes?

  • FoxJump on 22/05/2022 - 21:19
    +2

    Ask for it to be repaired and then $10k on top due to the loss in value

  • Quantumcat on 22/05/2022 - 22:07
    +1

    Get a refund, then get an EV when Albo's EV rebates come in. Buy a junk car for $2-$5k to get around in the meantime.

    • dealking10 on 22/05/2022 - 22:25

      This is the 2nd car so moving around is not a problem.

      • Euphemistic on 23/05/2022 - 08:23
        +4

        Send it back for a full refund then.

      • Quantumcat on 23/05/2022 - 11:11
        +1

        That makes the choice even more obvious. I'm not sure why you even had the first thought that you should ask us.

  • Skullytor on 22/05/2022 - 22:33

    Refund or repair PLUS extra cash your way

  • p1 ama on 23/05/2022 - 01:19
    -7

    For some reason, I can't help but feel very little sympathy for someone purchasing an $80K SUV. Out of all the cars on the road, expensive SUVs are consistently the worst behaved. If anything, you should be glad you're not admitted into that club for your own sake. Get a refund and go buy a Hyundai i30 or Kia Cerato instead.

    • lachhelix on 23/05/2022 - 01:53
      +3

      What has the fact you're not sympathetic to someone buying an $80k car got to do with the OPs decision? lmao

    • Ridiculous Panda on 23/05/2022 - 11:38

      Just because you can’t afford it doesn’t mean nobody should buy it.. You don’t even know what car it is. You come across as “the jealous others are doing better in life” kind of person.

  • nomoneynoproblems on 23/05/2022 - 06:36
    +5

    Take the money before the dealer changes their mind.

  • Venustrap87 on 23/05/2022 - 07:55

    U rather get a. Full refund and buy a 2nd hand car

  • [Deactivated] on 23/05/2022 - 07:59
    +2

    without incurring any more costs by me?

    Obviously a refund.

  • 2esc on 23/05/2022 - 08:19
    +3

    Why the question just take the refund.

  • [Deactivated] on 23/05/2022 - 08:29
    +1

    refund lol

  • MontyMacaw on 23/05/2022 - 08:37

    Car dealers: can’t live with them, can live without them.

  • Big Trev on 23/05/2022 - 08:48
    +2

    People don't realise how much "new" cars get damaged and repaired. My brother used to work at a panel shop who did a lot of work for a couple of the big dealers (Ford dealer around Moorabbin, amongst others), they had new cars in all the time for repair. Just sounds like in this case the repairer did a garbage job.

    • ankor on 23/05/2022 - 13:08

      Why are new cars in for repairs 'all the time?'

      I'm genuinely curious now!

      • DragoBoyz on 23/05/2022 - 20:42
        +4

        Cars can be damaged in transit, lots of people who won't have to deal with the problems won't say anything if they scratch or bump a panel.
        Some cars are converted from LHS to RHS drive and that process accidents can happen, again they might be small things people miss or not even realise they do.
        Clear coat and paint on cars (especially cheaper brands) is not thick. Black metallic cars in particular if you brush even with a piece of cardboard you can scratch them.
        Accidents can happen driving around the dealership, in the carpark, pulling onto a hoist.
        Accessory fitting is a major culprit. Breaking plastic components, scratching paint (slip with a screwdriver or drop a bolt on the hood), pulling the car apart to install wiring. Often a job given to new apprentices or people without qualification.
        Something as simple as closing a door and the seatbelt getting caught causes major damage.
        People who damage things may try to cover it up because they are new, worried about their job security, don't give a (profanity) or think it doesn't really matter.
        Most of the time it's all minor cosmetic things that can be easily fixed.

    • Yorkshire-Man on 23/05/2022 - 14:09
      +3

      This is true.

      I had a mate who worked on the docks unloading new cars. They had to be fast, they got driven off quickly. Accidents happen.

  • 82norm on 23/05/2022 - 09:00
    +5

    Take the money and run before they change their mind. The fact they knew very well what happened, kept it quiet is dodgy enough.

  • Boioioioi on 23/05/2022 - 09:04

    What sort of car is it? For curiosity sake

  • a-friend on 23/05/2022 - 09:23
    -1

    Name and shame the dealer, so others can avoid.

    Get refunded

    Good luck

  • HelpMeiCantSee on 23/05/2022 - 09:27
    +2

    I think the only reasonable course of action is to refuse the refund, pay the dealership the cost of repairs, and insist on keeping the car as is at any cost. It’s a high yield investment after all.

  • gromit on 23/05/2022 - 09:51
    +2

    refund all the way. You can't be certain what other damage may exist that you can't easily see or detect if it has been in a significant collision. You have a chance to get out with your money intact, take it and run.

  • TheOtherLeft on 23/05/2022 - 10:19
    +2

    So you got a sold a damaged car as new. The DP knows this since they're willing to pay for repairs etc. You got scammed. I would get a full refund and then leave bad reviews.

  • khangu on 23/05/2022 - 10:32
    -3

    Noone has said it yet.

    Get the repair money upfront from the dealer.

    Sell the car privately for $80K like the dealer would.

    Pocket the windfall. Buy an actual new car with the added coin. Only downside would be the wait.

    • ylukman on 23/05/2022 - 11:32

      You could do that and ruined your reputation if you didn't inform the damaged to the buyer.

      • khangu on 23/05/2022 - 11:49
        -2

        It's a buyers beware when it it comes to the used car market. That's just the reality. You take on all and every risk that comes with buying one privately.

        No-one really puts in a used car ad with an honest price or condition. They will always have a bit of fat on the asking price so they have room to negotiate, and put a bit of polish over any issues even when they are semi-honest about any underlying problems.

        Reputation is over rated when you are selling a one off car to someone once in a blue moon. I wouldn't go out of my way to screw someone over, simply because we are transacting at where I live lol, but the buyer need to take it to a mechanic for a look over if they don't know what they are doing. That's not my job.

        Whether it's ethical, and you can't sleep at night, that's a different matter. That's up to the individual.

        • ylukman on 23/05/2022 - 11:56

          Whether it's ethical, and you can't sleep at night, that's a different matter. That's up to the individual. <— and that's the reason why we have many dodgy vendor :( should try to do the best for both whenever possible.

  • Sterio on 23/05/2022 - 10:50
    +5

    Stop wasting your time with scenarios. You have been offered the best possible solution, a refund. Take it and take it now.

  • AryaTheExplorer on 23/05/2022 - 10:54

    What kind of car did you get?

    • FocusRider on 23/05/2022 - 10:58
      +2

      Mercedes C200 im guessing

  • ylukman on 23/05/2022 - 11:43

    Just get the refund and return the car but make sure you get the refund first or find a way to ensure that you will get a refund (consider that the dealer is dodgy). After that, avoid to do business with them or him anymore. I agree with your concern that there might be another unknown error. Don't waste too much time.

  • Ridiculous Panda on 23/05/2022 - 12:05

    Take a refund then expose them by leaving reviews and if you have time, try ACA.

    • gimme on 23/05/2022 - 13:49

      name checks out.

  • bigbadwolf21 on 23/05/2022 - 13:58
    +1

    $71K for a car? I thought this was OzBargain.

    • lachhelix on 23/05/2022 - 15:17

      Plot twist: the car is a Rolls Royce Cullinan they got for $71k!
      Ultimate OzBargain

  • OzHunterNSW on 23/05/2022 - 15:41
    +2

    Look… overwhelmingly the consensus is screaming at you to get your money back.

    There could be "sub-frame" issues… you just never know… it could have been a right off.

    Why should you be out of a vehicle for months whilst they fix this heap of £$£$$

    Get your money back…. any issues… seek legal advice from Dep of Fair Trading.

  • Dack Smith on 23/05/2022 - 16:05
    +1

    Keep the car.

    It’s not worth the hassle to get a refund then go though the same process again, perhaps getting another lemon.

    Keep the car

    • kaleidoscope on 23/05/2022 - 21:07

      why u assume OP’d get a lemon again? Are all dealers selling lemons these days.

      DP agreed to refund me all the money which I incurred in buying the car $71K (Deposit+Rego+StampDuty+Transit Cost

      That’s winning the lottery right there.

  • afah0447 on 23/05/2022 - 16:42

    Get a refund and buy a more reasonable priced car.

    • websterp on 23/05/2022 - 16:45
      +1

      You mean a used Camry?

  • bitcoinorbust on 23/05/2022 - 17:17

    Refuse refund and give the car away for free

  • Drakesy on 23/05/2022 - 17:32
    +1

    I'd put the ball back in their court for false advertising and misleading conduct.

    I think an $8k repair bill would be the least of their worries then.

  • hasher22 on 23/05/2022 - 18:07

    My first thought is money back.

    Unless you're so inlove that car like Rihanna to Chris brown, you may end up with an injured face in the future as you don't know what other repairs or damages happened.

  • MrFrugalSpend on 23/05/2022 - 18:27
    +4

    I would insist on a new car, and you get to keep that car until it arrives.
    I would not pay any extra - that is their problem.
    Threaten legal action, referral to consumer protection agency of the relevant state they are in (doesn't matter where you are, what was jurisdiction of the transaction and advertisement), and going public with it if they refuse.
    You do NOT have to pay any extra, they are bordering on illegal activity here - certainly very damaging to reputation.
    Then in 6 months you get a new car even though you have had one all this time.

    OR… as per popular opinion - get money back and get something else

  • Wampus on 23/05/2022 - 20:11
    +1

    As well as taking that refund, you 100% need to contact the car manufacturer and let them know that this happened as they will investigate the dealer themselves

    I had a similar issue happen 12 years ago with a Hyundai where the dealer pulled a swiftie on me. I complained to Hyundai Australia and they spoke to the dealer who reluctantly owned up to what had happened and offered to make good

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