Tell us your new car horror stories: ACCC

Government body has the car industry in its sights.

David McCowen
The ACCC will examine fuel efficiency claims as part of its study into the car industry. Photo: Louise Kennerley

Australia's consumer watchdog has narrowed its focus on the car industry, conducting a study of consumer experiences that could shape future laws.

The ACCC is set to examine a series of issues, and has asked new car customers to contribute to research by sharing their experiences with the government body.

The study is set to examine four areas of concern:

The first surrounds the effectiveness of customer guarantees or warranties, and how problems are rectified by new cars and dealers. Next on the list are claims made by carmakers surrounding the efficiency, economy and performance of models, and whether those numbers stack up in the real world.

Australian Automotive Association chief executive Michael Bradley welcomed the examination of fuel figures.

"The Australian Government currently performs no independent or real-world testing of vehicle manufacturer claims when it comes to the emissions and fuel usage of new cars sold in Australia," he says.

"As a result, fuel consumption labels on vehicle windscreens are based on laboratory tests largely performed overseas, and in some cases by the carmaker. It is critical that we ascertain the degree to which these resemble the actual fuel use and emissions profile of the vehicle when used on Australian roads.

Post-sale arrangements – including servicing, third-party maintenance and parts pricing and availability - will form the third tier of the study, while the fourth element looks at consumer access to repair and service information.

The car industry is responsible for many of the nation's product safety recalls, and some customers have been told to wait for months before vital components can be replaced.

ACCC chair Rod Sims says the body has received a large number of complaints from consumers relating to new cars.

"A new car is one of the most significant purchases that a consumer will make and issues with these purchases can have a significant financial consequence," he says.

"The ACCC and other Australian Consumer Law agencies continue to receive a high volume of complaints from consumers about new cars and this market study will help identify any systemic issues across the sector."

The study will not examine potential issues surrounding used cars, direct or parallel imports, vehicle financing and insurance products, capped price servicing or safety matters.

ANCAP chief executive James Goodwin says it is unfortunate that safety information will not be examined.

"This study is an important step in understanding consumer needs in a changing and competitive marketplace but information about vehicle safety ratings and how safety is presented in showrooms and advertising should be a focus area," he says.

Motorists can make submissions to the ACCC until November 14. A draft report will be released mid-2017 before the consumer body releases its full report in late 2017.

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