ACAT Used Car and Motor Vehicle Defect Disputes in the ACT

You bought a used car in Canberra and within weeks it needs thousands in repairs that the seller never mentioned. Whether you bought from a dealer or a private seller, you may have a claim at ACAT — but the legal basis differs depending on who sold the car and what went wrong.

Dealer Sales: Australian Consumer Law Guarantees

When you buy a car as a consumer from a licensed motor dealer in the ACT, the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010) gives you automatic consumer guarantees. The car must be of acceptable quality, fit for its disclosed purpose, and match any description the dealer provided. These guarantees apply even if the dealer sold the car "as is" or with a limited warranty — consumer guarantees cannot be excluded for goods sold in trade or commerce.

If the car has a major failure — an engine problem that makes it unsafe to drive, an undisclosed history of flood damage, or an odometer that has been wound back — you can reject the car and claim a full refund. For a minor failure, the dealer gets a chance to repair it within a reasonable time before you can reject.

ACAT handles these claims through its civil disputes jurisdiction, applying the ACL consumer guarantee provisions. Filing fees follow the standard schedule: $93 for claims up to $3,000, $195 for claims between $3,001 and $15,000, and $707 for $15,001–$25,000 (DI2026-112 rates for individuals).

Private Sales: A Narrower Path

Consumer guarantees under the ACL generally do not apply to private sales — a person selling their own car on Facebook Marketplace or Gumtree is not "in trade or commerce." A buyer must prove active fraud or deceit, or breach of an express term in the sale agreement. Examples include:

• Actively misrepresented the car's condition — for example, claiming it had a clear PPSR (Personal Property Securities Register) check when it had outstanding finance, or stating it had never been in an accident when the repair history says otherwise
• Concealed a known defect — hiding mechanical problems, removing a check engine light, or covering rust with fresh paint
• Breached a written agreement — if you signed a private sale contract specifying the car's condition and it did not match

These claims go through ACAT as breach of contract or fraudulent misrepresentation under the general civil jurisdiction. The burden is on you to prove what the seller said or concealed, so keep every text message, email, listing screenshot, and inspection receipt.

Building Your Case

A used car dispute is only as strong as the evidence you bring. Before filing:

1. Get an independent mechanical inspection. A written report from a qualified mechanic detailing the defects, their likely cause, and the estimated repair cost is the single most important piece of evidence. If possible, have the inspection done before you confront the seller — it removes any argument that the problem happened after purchase.

2. Preserve the original listing. Screenshot the online advertisement showing the seller's description, asking price, and any claims about the car's condition ("well maintained," "low kms," "no issues"). Listings get taken down; once deleted, the evidence is gone.

3. Request a PPSR check. An online Personal Property Securities Register search costs $2 at ppsr.gov.au and shows whether the car has outstanding finance, has been reported stolen, or has been written off. If the seller told you the car was clear and the PPSR says otherwise, that is strong evidence of misrepresentation.

4. Document everything in writing. After you discover the defect, write to the seller (email or text) describing the problem and what you want — a repair, a refund, or contribution to repair costs. Keep the tone factual. Their response (or silence) becomes part of your ACAT evidence.

The Filing Process

If the seller refuses to resolve the issue, send a formal letter of demand giving them 14 days to respond. Then file a Civil Dispute Application through ACAT's online form or in person at 15 Moore Street. Email filings are accepted only when no filing fee is payable, the documents total less than 40 pages, and there are fewer than three attachments.

Name the correct respondent. For a dealer, use the registered company name and ACN — search the ASIC register to confirm. For a private seller, use their full legal name and residential address. ACAT generally serves the application by prepaid post; if you choose to serve it yourself, follow ACAT's service requirements.

Attach your letter of demand, the mechanical inspection report, the purchase receipt, the original listing, relevant correspondence, and a timeline of events. ACAT lists an initial Directions Hearing after the response due date. Depending on the case, ACAT may then schedule a conference; if it does not settle, the matter proceeds to a hearing where you present your evidence.

What ACAT Cannot Do

ACAT handles civil disputes up to $25,000. If the car cost $35,000 and you want a full refund, you can abandon the excess above $25,000 on the application form (permanently waiving it), take the claim to the ACT Magistrates Court, or ask all participating parties to agree in writing for ACAT to decide the full amount.

Motor vehicle accident injury claims (personal injury from a crash) do not go through ACAT's civil disputes list — they are handled under ACAT's separate Motor Accident Injuries framework, which took effect on 1 February 2020 and has its own specialised rules.

Free Help

Care Consumer Law operates a duty lawyer at ACAT every Monday and specifically advises on consumer protection and contract disputes — used car claims are squarely within their scope. They can help you assess whether the consumer guarantees apply to your situation before you commit to filing.

The ACAT Civil Dispute Claim Guide covers the entire process from demand letter through hearing, with a pre-filing checklist and an evidence index template you can use to organise your mechanical reports, correspondence, and listing records.

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