Our client, a Queensland fishing business, needed a reliable truck. It bought a near-new used one from a company that advertised it as “very clean” and suited to “a new truck buyer”.
The business paid well over $100,000.
Then, when it sent the truck to have a tray fitted, it found the chassis had been cut and shortened by more than a metre. Later it found the gearbox had a fault the seller knew about. ezylegal took the seller and its director to the Queensland Civil and Administrative Tribunal (QCAT), and the dispute settled at mediation.
At a glance
- Problem: A used truck sold as suitable for a new truck buyer had an undisclosed cut-down chassis and a known transmission fault.
- Claim against: The company that sold the truck, and its director personally.
- Legal basis: The Australian Consumer Law guarantee of acceptable quality, and misleading and deceptive conduct in the advertisement.
- Result: A negotiated settlement at QCAT mediation.
A “new truck buyer” truck with a cut chassis
The business bought the truck after seeing an online ad. The ad said it was very clean and would suit someone looking for a new truck. The business relied on that, and paid in full.
Days later, it sent the truck to a body builder to fit a tray. The body builder found that the chassis had been cut and about 1.1 metres removed. Nobody had mentioned it. Fixing it meant extra work just to return the chassis to standard.
A gearbox fault the seller knew about
After finding the chassis problem, the business’s director looked into the truck’s history. A workshop that had previously serviced it confirmed its records showed a known transmission fault. The notes recorded it jumping out of gear and metal in the oil.
The business had the transmission rebuilt, at a cost of thousands of dollars.
Taking it to QCAT
ezylegal sent a letter of demand to the seller. When it didn’t resolve the matter, ezylegal filed a minor civil dispute in QCAT against both the company and its director. We relied on the consumer guarantees, and on the ad being misleading.
We filed a statement of facts, a statement of evidence and submissions, and applied for the seller to produce documents.
The outcome
The dispute settled at QCAT mediation.
Can I claim if a used vehicle from a business has hidden defects?
Yes. When you buy from a business, the Australian Consumer Law guarantees the vehicle will be of acceptable quality for its age, price and kilometres. A business also can’t mislead you about a vehicle’s condition, or hide defects it knows about.
Businesses are protected too. The consumer guarantees cover goods costing $100,000 or less. They also cover a vehicle bought mainly to carry goods on public roads, like a work truck, whatever it costs. A director who personally makes misleading statements can also be held responsible. For smaller claims, QCAT is a quicker and cheaper place to resolve them than court.
If you’re facing something similar
If a vehicle you bought from a business has hidden problems:
- keep the ad, including screenshots, and the invoice
- get a written report from whoever found the defect
- ask previous service workshops for the vehicle’s history
- keep every quote and invoice for repairs
- put your claim to the seller in writing
Get advice early, because time limits apply. Read more about your rights under the Australian Consumer Law.
ezylegal operates on a no-win, no-fee* basis across consumer, commercial and insurance disputes, so you’re not weighing the cost of a lawyer against the cost of walking away.