How long is the warranty on my faulty car: Is it a demo or new car?
QUESTION
Dear John,
I have a serious issue with a new Subaru XV 2.0i-S I purchased in 2019 on which I would be grateful if you could assist with getting a fair resolution from Subaru Australia please.
The salient points are:
1) There were some problems starting to develop about 4 to 5 months after purchasing the car with the electronics, in particular the EyeSight/Auto Braking System. I narrowly avoided a serious accident on more than one occasion, as this feature simply didn’t work.
2) I took the car back to the Subaru dealership (in Victoria) for correcting them, but each time the service department merely told me there were “no fault codes” showing up on the computer. After about the 3rd visit to the dealership with the same recurring problems (and others), I noticed the warranty expiry date on the service invoices I was given had changed from 2024 (5 years) to 2021 (2 years).
3) When I queried this, I was told to contact Subaru Australia in NSW and, when I did, a staff member there informed me categorically that this vehicle showed up as a ‘demo-car’ on their inventory system. I had to submit a copy of my ‘New Vehicle Contract’ to prove that I had in fact purchased a new car.
4) After numerous phone calls and emails, when initially both the Head Office Case Manager and the Sales Manager at the dealership here were trying to assuage my frustrations and disappointment by explaining that Subaru had different categories of ‘demo-vehicles’ and whilst mine was one such, this car had not been used on the road. I kept insisting that this point was never mentioned at the time of purchase nor was on my contract. I would never have purchased a demo-car of any category.
5) When I persisted with my complaints and wanted some restitution in the form of a new car replacement (for this defective demo-car) at a significantly reduced price, I found that the two offices (Head Office and dealership) had closed ranks on me and had changed their collective stance. So they now maintain that this car was “never a demo”, and unfortunately I have no proof that these earlier telephone conversations took place.
6) I complained to the Pacific Regional Manager in Japan who promptly replied, saying he had asked Subaru Australia to resolve this with me satisfactorily.
7) The matter was passed on back to the dealership here in Victoria, who have asked me to pay an unreasonably high price for the change-over to a new car. When I said this was unfair, there is absolutely no consideration for compensation, and they are seeking to make a profit on this transaction, I was given to understand that this is because Subaru Australia are not willing to share in this cost with them.
8) I went back to Japan, and once again the Regional Manager apologised to me saying that he had again asked Subaru Australia to look into this, also stating that, "Subaru Australia values fairness and can communicate with you in an honest manner".
9) Subaru Australia have responded to me with a formal email (last week) saying that they would be in contact with me.
Whilst I am still awaiting a response from Subaru Australia, is there anything you could assist me with in seeking a satisfactory and fair outcome, John?
Kind regards,
Malcolm
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ANSWER
Malcolm,
So, let’s wait until the final e-mail from them comes along. See what they say.
Frankly it seems to me there’s no definitive proof either way whether the car is a demonstrator or not. It could be an un-driven demonstrator, or a new car incorrectly categorised as an un-driven demonstrator on their database.
Subaru changed from a 3yr warranty to a 5yr warranty on 1 Jan 2019 - that was for new cars purchased on or after that date - so a demonstrator purchased on that date would have a 3yr warranty.
Presumably you looked at the odometer when you bought it in 2019. If it had a small number (double digit) of kays on the clock it’s essentially un-driven. In which case the distinction between ’new’ and ‘demonstrator’ is totally moot, and if they correct the administrative error by resetting the warranty clock and giving you 5yrs from the sale date, that’s a fair compensation.
If they don’t do that, then you’ll need to speak to your solicitor about proceeding against them - if you are entitled to a remedy under Consumer Law. (The details really matter here, and only your solicitor can advise you.) If you fight them, it could cost you $10-$20k in legal and expert fees, and you might lose, and unless the other team behaves particularly egregiously, you’ll wear your own legal costs, even if you win. (And you might lose.)
Were I you, I would be advocating for the warranty clock reset option, because in all other respects, the vehicle you purchased appears to be brand new.
Sincerely,
John Cadogan
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