How do I fight the manufacturer for a new engine under warranty?
QUESTION
Hi John,
I am hoping you would be able to assist me as a consumer. I have previously purchased a Mazda 2 through your service, but this issue does not relate to that vehicle - nothing but happy motoring there.
In July 2017, I purchased a second-hand Hyundai Sonata from James Frizelle’s Automotive. The same entity operates Gold Coast Hyundai, as well as a second-hand section (they also operate Southport Mazda where my wife’s Mazda was purchased).
I was not looking for a Sonata initially, but was comforted by the fact the car was only 15 months old, and still had the majority of the 5 year warranty. The vehicle had only travelled 18,000kms at the time of purchase.
I then serviced the vehicle through Gold Coast Hyundai, it would normally be serviced more frequently than required (between 12-14,000kms).
Around late 2019, the vehicle started to shudder and vibrate with the engine warning light glowing. After contacting Hyundai Roadside Assist, this was determined to be a build-up of carbon on the sparkplugs. It was suggested that the oil levels would be monitored at future services, as oil consumption was a likely cause of the carbon build-up.
Oil consumption had become a noticeable issue, and on 28 September 2020, I contacted Hyundai directly to detail this issue.
The vehicle was booked in for service, and an additional issue of a consistent fuel smell was addressed by Frizelle's under warranty. This issue had appeared previously and was addressed under warranty.
An oil consumption test was required to diagnose the issue of oil consumption properly. This was done by returning to the dealership after travelling every 1000kms over a period of a few months.
After confirming there was an issue with oil consumption, the vehicle was booked in for diagnosis on 10 March 2021. On 8 March 2021, I delivered the vehicle to Frizelle's as the shuddering and vibration issue had returned.
On 10 March 2021, I received a call from the service department. He advised the vehicle would require a replacement engine.
On 18 March 2021, I received another call, advising that Hyundai would not honour the warranty based on the vehicle exceeding 130,000kms and being registered initially for commercial use by the first owner. I only found out after purchase the vehicle had originally been a rental car. This argument holds little water, as the issue was noted initially at close to 80-90,000kms, and again in the 120,000’s.
Frizelle advised it would request Hyundai to reconsider their position.
On 24 March 2021, I received another call, saying that Hyundai would not honour the warranty based off the vehicle missing a service under the first owner, and the service department said it would be unable to provide further assistance. I was asked to collect the vehicle, or attempt contact with Hyundai directly.
I would never have purchased the vehicle had I been advised Hyundai would not honour the warranty.
On 26 March 2021, I wrote to both Frizelle’s and Hyundai Australia, requiring a response no later than close-of-business 1 April 2021.
No response was received.
I am currently borrowing a car from family members to get around.
I am happy to make a complaint to the Office of Fair Trading and the ACCC, and if needed file with QCAT, but I would like this resolved quickly.
You have been able to change the opinions of car companies in the past. Is there anything you can do to assist?
Regards,
Timothy
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ANSWER
Timothy,
There are two parts to this answer:
Always investigate the warranty status and service history BEFORE buying any used car. Always. Never ask the dealership for information about the car, or verbal guarantees. These are worth nothing.
Speak you your solicitor now. The details really matter. Voiding the warranty does not necessarily void your consumer law entitlements. The details really matter, however. The alleged missed first service is going to be a real problem. Take independent legal advice, because Fair Trading is hopeless, and the ACCC does not act for individuals.
The key issue here is for you to establish whether you have an entitlement to a remedy under Australian Consumer Law. Only your own solicitor can advise you on this, after assessing the evidence.
If you go under the bus on this, get a used engine and fit that. I’d get a decent independent mechanic to handle the whole thing - not the dealership. You’ll probably save about half the cost if you go this way.
If Hyundai has already assessed this and declined to repair it for free, they have their reasons (after examining the details from their side). They won’t change this position just because I e-mail them on your behalf. I really think you need that legal advice.
I realise that this determination of theirs is very confronting after you had assumed the warranty was current. It may be that their warranty department has looked at it and declined, without examining the consumer law dimension of this. It may be that a correctly worded demand from your solicitor has a chance of leveraging this situation, and turn this frown upside-down.
Best of luck with it.
Sincerely,
John Cadogan
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