Should Hyundai pay for my high-kilometre repairs?
QUESTION
Hi John,
I was given a rough estimate of $6500 for fixing the transfer case and potentially the differential on my 2013 Hyundai Santa Fe Highlander Diesel (with over 205,000km travelled). According to the dealer it’s ‘not an uncommon issue’ and something ‘they had seen may times before’.
My vehicle is now at the dealer waiting to assess the damage. I asked the dealer to put in a request with Hyundai to repair whatever damage has occurred and they also explained that if it is rejected, I have the opportunity to contact Hyundai Australia directly to plead my case. Hence why I am contacting you.
I bought it from a middle-aged women who had owned it since new, travelling frequently between Perth and Busselton (about 440km round trip). It was regularly serviced at the dealer, even having intermediate services done up until around 100,000km. It’s in excellent condition, has never towed and definitely hasn’t been abused.
I’ve seen many owners reporting they’ve had this issue fixed and covered by Hyundai outside of the warranty period, at different kilometres driven, some at 30,000kms and others at 170,000kms. Given the regularity and seemingly unpredictability of these failures and that this vehicle cost over $50,000 new, I don’t think it is unreasonable for Hyundai to cover the costs of this fix, especially given my vehicle has been so well cared for.
I assume that legally Hyundai is not required to fix or provide a solution to this common issue because it is not safety related and therefore does not warrant a recall here is Australia, but again, given how common this issue is, I believe it should be addressed and customers should not be hung out to dry.
I know that in your experience Hyundai is excellent when it comes to helping their customers when they have an issue, and this was one of the things that got me across the line. I would be grateful of your opinion.
Thank you in advance for your time.
All the best,
Conor
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ANSWER
Conor,
Okay, you went off the reservation about two-thirds in.
Consumer law says manufacturers are required to fix for free anything which fails unreasonably early. (Ie - when the durability expectations of a reasonable consumer are not met. Ultimately it’s up to a court to decide what ‘reasonable’ means, because the same laws cover pencils and tennis rackets and mobile phones and cars.
Safety-related or otherwise is really irrelevant in respect of the defect.
I would ask them to fix it for free, and if they decline I would talk to a solicitor to see how they assess your chances of winning a fight on this.
The risk is that major repairs are not unexpected after 200,000km, and Hyundai may be well within its rights to decline a free fix. This vehicle has incredibly high kilometres for its age - I don’t know what made you think buying it was a brilliant idea - you should be searching for the lowest kays, all other things being equal, in a used vehicle. (Average annual driving distance in Australia: about 13,500km, according to Ausstats, pre-COVID.)
I don’t see how making the point that this is a common fault will help you. You are not running a class action. You are trying to achieve a single remedy for yourself under consumer law. Facebook ‘research’ doesn’t qualify as ‘research’. The law only cares if the failure is premature, not whether or not it is common.
Search ‘ACCC Consumer Guarantees’ so you better understand how the law works here.
You’ll just have to see what they say. If you are required to pay, get an independent mechanic you trust to quote on the job - he’ll probably fix it for about half what a dealer will charge you. This might be a light at the end of the tunnel for you, depending on how your request for a remedy plays out.
Hope this helps.
Sincerely,
John Cadogan
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