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Motor vehicle warranty and repair disputes

NSW Fair Trading provides a free dispute resolution service to motor vehicle owners, licensed motor dealers or licensed motor vehicle repairers with statutory warranty or repair disputes. The following information outlines NSW Fair Trading’s dispute resolution process for warranty and repair disputes.

How will Fair Trading assist in resolving a dispute?

The dispute resolution service offered by Fair Trading is a voluntary process between the motor vehicle owner and the licensed motor dealer or repairer. Dispute resolution is assisted by an experienced Fair Trading officer and where necessary with mechanical trade qualifications.

Fair Trading aims to resolve disputes through mutual agreement.  Fair Trading will endeavour to bring the parties with the dispute together on site to resolve the dispute.  However, a teleconference may be arranged instead if preferred.

The dispute resolution process will not result in orders that require either party to do anything or to pay any amount of money. It is also not the role of a Fair Trading officer to inspect any motor vehicle and determine faults.

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What can be done before Fair Trading’s intervention?

Both the vehicle owner and licensed motor dealer or repairer should try to resolve the dispute prior to Fair Trading’s intervention. This is preferable and can save both parties time and money.

If you are in dispute, follow these steps to seek a resolution:

  1. Discuss your concerns with the other party and explain the problem you have. Let the other party express their concerns or state their position.
  2. The parties should also be ready to discuss the issues relating to the dispute and have all relevant information about the dispute available. This could include:
    • invoices
    • receipts
    • sale contracts
    • prescribed forms
    • repair estimates
    • quotes
    • job cards
    • correspondence
    • technical reports.
  3. Both parties should put forward ideas or suggestions on how the dispute could be resolved and be prepared to negotiate an agreeable settlement.
  4. If you need advice, call Fair Trading on 13 32 20 to discuss your problem.
  5. If unresolved, you can lodge a complaint with Fair Trading.

Either party to a dispute can contact Fair Trading for advice on how to resolve a dispute prior to intervention.

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When will the dispute resolution process take place?

Once Fair Trading receives a complaint about a dispute between a vehicle owner and licensed motor dealer or repairer, we endeavour to resolve the matter as soon as possible.

The time frame for dispute resolution depends upon the level of inquiries to be made by Fair Trading and the availability of both parties to participate in the process.

Generally Fair Trading will endeavour to resolve a dispute within 30 days of receipt of the complaint.

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What to expect as a result of the dispute resolution process

If Fair Trading is able to help both parties reach an agreeable settlement, a ‘Terms of Settlement’ will be drawn up, setting out what each party has agreed to. The parties will be asked to sign the ‘Terms of Settlement’. Fair Trading will then deem the complaint resolved and no further intervention will occur.

If the parties are unable to reach an agreement then both parties will be advised of the outcome and recommended to seek independent advice or lodge a claim with the Consumer, Trader and Tenancy Tribunal (CTTT).

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During the dispute resolution process

Both the vehicle owner and licensed motor dealer or repairer need to be prepared to put their points forward but also to listen to what the other party has to say.  It is beneficial for both parties to have suggestions on how the dispute could be settled.

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What is the role of the Fair Trading officer?

Fair Trading officers are qualified and skilled in the area of dispute resolution and will:

  • provide impartial advice to the parties with a dispute
  • allow all parties to put forward their points
  • explain the relevant matters in the dispute
  • confirm that all relevant matters have been discussed
  • put forward suggestions as to the best way to resolve the dispute.

The Fair Trading officer will not:

  • take sides or represent either the vehicle owner or licensed motor dealer or repairer
  • continue with the dispute resolution process if the parties do not show a willingness to reach an agreeable settlement
  • offer any legal advice.

The Fair Trading officer cannot:

  • order any party in the dispute
    • to allow or do any work to a vehicle
    • to pay any money
    • to return a vehicle to any person
  • dismantle any components or diagnose any problem with a vehicle beyond what the officer is able to see or hear
  • force either party to continue with the dispute resolution process.

The dispute resolution process is voluntary and depends on the co-operation of both parties to succeed.

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What happens if there is no resolution?

If the dispute is not resolved either party may lodge a claim with the Consumer, Trader and Tenancy Tribunal (CTTT).

The CTTT can request Fair Trading to provide a report on any dispute resolution process conducted. This report is provided directly to the CTTT.

The CTTT can make orders which are binding on the parties.  These may include payment of monetary amounts or repair work to be completed on a vehicle. The maximum claim that can be made through the CTTT is $30,000, except where the claim relates to a new motor vehicle used for private purposes.

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