Decisions from the Motor Vehicle Disputes Tribunal – January 2025
2 recent decisions made by the Motor Vehicle Disputes Tribunal relate to traders not complying with Consumer Guarantees Act. In both cases, the Tribunal ruled in the customer's favour.
Both cases also required the Registered Motor Vehicle Trader to pick up the vehicle from the Complainant, at their cost.
Grieves v Olgo Motors Limited
The complainant wanted to reject the 2013 Nissan Xtrail they bought from Olgo Motors Limited for $11,900.
Multiple issues and the warning light still showing
When driving the vehicle, the complainant reported that the engine management light appeared on the dashboard within 10 minutes of driving. The Complainant complained to Olgo Motors Limited who found the cause of the light and said that they would arrange to have it repaired.
The Complainant drove the car again and noticed more issues. A repairer on behalf of Olgo Motors Limited inspected the vehicle and found a different issue, which was repaired.
The warning light reappeared and Olgo’s repairer did not have capacity to look at the vehicle. The Complainant took the vehicle to another repairer who found a blown head gasket and other issues.
The Complainant advised Olgo, who called for the vehicle to be returned so that the engine could be replaced, which the Complainant agreed to. After 4 weeks the vehicle was returned to the Complainant. However, within 5 minutes of driving the vehicle the engine management light reappeared.
The Complainant wanted to return the vehicle and demanded a refund. Olgo declined and wanted to perform more tests, which the Complainant refused. The Complainant paid $1,018 for separate diagnostics which found a possible fault, however, the engine management light problem remained.
Vehicle fails ‘guarantee of acceptable quality’
The Tribunal found that the vehicle failed the guarantee of acceptable quality because of the pre-existing exhaust problem and the blown head gasket. These problems meant that the vehicle was not as free from minor defects, safe or durable as a reasonable consumer fully acquainted with the state and condition of the goods, including any hidden defects, would regard as acceptable.
The Tribunal found that the complainant was entitled to compensation because Olgo failed to repair the problem. The Tribunal said that the Complainant was entitled to a refund of the cost of the vehicle ($11,900) and to be repaid any money spent on other vehicle tests. The Tribunal required the Complainant to make the vehicle available for collection by Olgo, at its cost (if any).
Saju v Quay Cars 2008 Limited
The Complainant wanted to return the 2011 Toyota Estima Hybrid they bought from Quay Cars 2008 Limited for $16,500.
Excessive sideways movement
The Complainant provided evidence to the Tribunal of “excessive sideways movement of the steering rack shaft, which rendered the vehicle unroadworthy.” Quay Cars 2008 Limited had paid a repairer to fix the issue, however, this was not successful. The Complainant paid for her own technician to do an assessment and this was provided to the Tribunal.
Vehicle not of acceptable quality
The Tribunal found that the vehicle was not of acceptable quality and had a major failure.
The Tribunal noted that the Complainant had continued to use the vehicle and travelled approximately 13,000 kilometres since purchase. However, they had done so under the mistaken belief that the vehicle was roadworthy and repaired.
The Tribunal ordered that the Complainant be reimbursed the purchase price paid in full and reimbursed the $145 plus GST that she paid for a local repairer to find the problem. Following this payment, the Complainant had to make the vehicle available to be picked up — at their own expense (if any).