Driving Home the Consumer Guarantees (Prestige Auto Traders v Bonnefin)

In this episode, join the Joels as they race into the precarious chicane that is the consumer guarantees and second-hand cars.

While it might be unexpected, second-hand goods (including cars) receive the benefits of the consumer guarantees when sold by a business. Prestige Auto Traders Australia Pty Ltd v Bonnefin [2017] NSWSC 149 explores exactly this situation. The Bonnefins purchased a second-hand BMW X5 from Prestige Auto Trades Australia (‘Prestige’) that ultimately suffered from a series of defects Prestige were unable to address.

The Bonnefins commenced a proceeding in the Local Court of New South Wales claiming that their second-hand BWM suffered from so many defects that they were able to reject it and get their money back from Prestige. The Bonnefins were successful in the first instance, but Prestige appealed to the Supreme Court of New South Wales seeking to overturn this decision. Justice N Adams of the NSW Supreme Court found that the volume of defects and the fact that the Bonnefins had acted quicky in attempting to have the defects remedied, let to the Her Honour upholding the Local Court’s finding in favour of the Bonnefins.

This case reaffirms the position that even when a good is purchased second hand, defects can be dealt with through the Australian Consumer Law.

This is the ninth episode of Keeping Up with the Consumer Law. Keeping Up with the Consumer Law is financially supported by the Law Foundation of South Australia.

Want to learn more about this case? You can find the decision of the Supreme Court of New South Wales here: http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2017/149.html

Get in touch with Grieger and Lisk at ⁠www.consumerlaw.media/contact⁠.

Keeping Up with the Consumer Law is intended to be for educational purposes only and should not be considered legal advice. Does this episode raise any questions for you about how you can use the ACL or what your obligations are under the ACL? We recommend seeing a lawyer, head over to ⁠www.consumerlaw.media/legal-advice⁠ for more information.

Keeping Up with the Consumer Law is recorded and produced on Kaurna Country.