Focus On Consumer Guarantees In Motor Vehicle Purchases Welcomed By AAAA
The Australian Automotive Aftermarket Association (AAAA) has welcomed the Australian Competition and Consumer Commission’s (ACCC) compliance and enforcement priorities for 2026–27, particularly its continued focus on consumer guarantees in motor vehicle sales.
AAAA Chief Executive Officer Stuart Charity said the ACCC’s emphasis is timely given ongoing confusion among new car buyers about the difference between manufacturer warranties, extended warranties and their automatic rights under the Australian Consumer Law.
“Consumers are routinely told, directly or indirectly, that their rights end when a manufacturer’s warranty ends — or that they must return to the dealer for servicing to protect their warranty. That’s simply not how Australian consumer law works,” Mr Charity said.
Under Australian consumer law, consumer guarantees are automatic and cannot be excluded or limited by anything stated in a contract, warranty document or at the point of sale. For motor vehicles, these guarantees apply for an unspecified but reasonable period and require that a vehicle be of acceptable quality — including being safe, durable and free from defects — be fit for any disclosed purpose, match its description or demonstration model, and have spare parts and repair facilities reasonably available.
Where a vehicle has a major problem, consumers are entitled to choose a refund or replacement, and in some cases a repair. For non-major problems, consumers may still be entitled to repair or replacement.
“The key point is this: a manufacturer’s warranty is an additional promise — it does not replace consumer guarantees. Consumers should never accept ‘your warranty has expired’ as the end of the story,” Mr Charity said.
The AAAA emphasised that consumer guarantee rights apply regardless of whether an independent technician services or repairs the vehicle. Motorists are entitled to have their vehicle maintained by a qualified independent repairer while preserving their consumer protections.
AAAA research shows 40% of new car owners believe they must return to the dealer to maintain their warranty, 40% understand they can choose a qualified independent repairer and still rely on consumer protections, and 20% remain unsure.
“In practice, that means up to 60% of new car owners could be making decisions based on confusion or misinformation. That’s a competition issue as much as it is a consumer issue,” Mr Charity said.
The AAAA has encouraged vehicle sellers, manufacturers and warranty providers to ensure communications are clear and not misleading, particularly where extended warranties include restrictive conditions, such as tied repairer arrangements, that may confuse consumers about rights they already have under consumer guarantees.
“We welcome the ACCC’s renewed focus and look forward to working constructively with the Commission to lift awareness and improve compliance — so consumers can confidently choose their repairer, keep servicing affordable, and ensure competition continues to drive innovation across our industry,” Mr Charity said.