What to Do When a Dealership Won’t Resolve Your Business Vehicle Issues

Dealing with vehicle problems is a common headache for small business owners, especially when it directly affects their operations. If you’ve purchased a vehicle for your business and are facing issues, it can feel frustrating, particularly when the dealership is unhelpful. These issues often involve:

• Problems appearing shortly after the vehicle is purchased.
• Warranties not being honored.
• Misleading sales tactics or unclear terms.
• Disputes over the condition of the vehicle or finance clauses that weren’t fully understood at the time of purchase.

Your Consumer Rights as a Business Owner

As a business owner, you still have consumer rights under Australian Consumer Law (ACL), even when the vehicle is used for business purposes. Your rights may apply if:

• The vehicle cost less than $100,000.
• It is primarily used to transport goods on public roads.

Some of the rights you may have include:

• Statutory warranties, which depend on the vehicle’s age and mileage.
• Manufacturer’s warranty (for new cars).
• Consumer guarantees under ACL, such as ensuring the vehicle is fit for purpose, free from defects, safe, and durable.

For more details, it’s a good idea to check out ACL’s guide on motor vehicle sales and repairs.

Tip: Keep in mind that extended warranties are optional and do not replace your existing legal rights. To understand more, review the Consumer Protection car warranties guide.

How to Resolve a Dispute with the Dealership

It’s not uncommon for business owners to struggle with getting their vehicle issues addressed, despite having clear consumer rights. If you find yourself in this situation, here’s a step-by-step approach to resolve the problem:

Step 1: Put Your Issue in Writing

When dealing with any business dispute, putting the issue in writing is crucial. Documenting the problem allows you to establish a clear timeline and record of the issues you’ve encountered. Be sure to:

• Keep your tone factual and polite.
• Include important details such as dates, receipts, and photos.
• Provide a reasonable deadline for them to respond.

Action: You can use a complaint letter template to help structure your communication.

Step 2: Raise the Issue with the Dealership

Send your written complaint to the dealership. Afterward, follow up with a phone call to discuss the situation and to clarify how you would like them to resolve it.

Step 3: Escalate to the Dealer Principal or General Manager

If the issue isn’t resolved after your initial contact, escalate it to the Dealer Principal or General Manager, who are typically the final decision-makers at the dealership.

Action: You can use the Online Licence Search on the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) website to find the contact information for the Dealer Principal or General Manager. Search for “Motor Vehicle Dealer” under the record type to locate the right contact.

Step 4: Know Where to Turn for Help

If your issue remains unresolved after following these steps, there are government agencies that can help, depending on how the vehicle was purchased.

• For Private Purchases: If the vehicle was purchased in your personal name or through your business but used mainly for private purposes, you can contact Consumer Protection WA. Be clear that the vehicle is used for personal purposes.

Action: Submit a complaint through the Consumer Protection complaint form.

• For Business Purchases: If the vehicle was bought for business use, contact the Small Business Development Corporation (SBDC) for advice. Their free advisory service can assist you, and if needed, refer you to a dispute resolution service for more complex cases.

This service is especially helpful for small business owners who need expert guidance to navigate consumer law and achieve a fair resolution.

Tips to Prevent Future Vehicle Issues

To avoid future problems when purchasing vehicles for your business, keep these tips in mind:

• Only buy from licensed motor vehicle dealers.
• Always thoroughly inspect the vehicle before purchasing.
• Request all promises or commitments made by the dealer in writing.
• Keep a record of all communication with the dealership for future reference.

By taking these steps, you can better protect yourself and your business when dealing with vehicle-related disputes.