AustraliaI bought a new car that keeps breaking down. Do consumer guarantees cover this?
Yes, consumer guarantees under the Australian Consumer Law (ACL) cover new cars that keep breaking down — they must be of acceptable quality, fit for purpose, and match descriptions or samples.
What the Law Says
The Australian Consumer Law (ACL), which is Schedule 2 of the Competition and Consumer Act 2010 (Cth), provides automatic consumer guarantees that apply to all new cars sold to consumers in Australia — regardless of any manufacturer warranty.
These guarantees mean your car must be of 'acceptable quality' — safe, durable, free from defects, and lasting a reasonable time considering its price and type (ACL s. 54).
It must also be 'fit for any disclosed purpose' — for example, if you told the seller you needed it for towing, it must perform that function (ACL s. 55).
The car must match its description, sample, or demonstration model (ACL s. 56), and the seller must have the right to sell it and deliver clear title (ACL ss. 51–52).
Unlike warranties, these guarantees last for a reasonable period — not just 3 months or 1 year — and depend on factors like the car’s price, type, advertising, and normal use. A $50,000 new car should reasonably last many years without repeated breakdowns.
If a fault amounts to a 'major failure' — such as repeated breakdowns making the car unsafe or unusable — you can choose a replacement or refund, not just a repair (ACL s. 260).
Statutory TextGoods are of acceptable quality if they are safe, durable, and free from defects; and acceptable in appearance and finish; and do what a reasonable consumer would expect them to do.
— Australian Consumer Law, s. 54 — Acceptable quality
Statutory TextGoods are fit for a purpose if they are reasonably fit for any purpose made known to the supplier...
— Australian Consumer Law, s. 55 — Fitness for purpose
Statutory TextGoods must correspond with their description.
— Australian Consumer Law, s. 56 — Correspondence with description
Statutory TextA major failure includes circumstances where a reasonable consumer would not have acquired the goods if they had known about the failure.
— Australian Consumer Law, s. 260 — Meaning of major failure
What to Do
Contact the car dealer or manufacturer in writing, clearly describing each fault, dates, and repair attempts.
Request a remedy — repair, replacement, or refund — citing your rights under the Australian Consumer Law.
If refused or ignored, contact your state or territory consumer affairs agency (e.g., NSW Fair Trading, VIC Consumer Affairs).
As a last resort, apply to the relevant tribunal (e.g., NCAT, VCAT) — no lawyer needed for claims under $40,000.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.