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I purchased a 2012 Holden Captiva from a dealer for around 17k. 6 months after purchase on the way to the airport the engine exploded, requiring a tow from the side of the motorway.
I rang the dealer and they recommended their mechanic (respectable big workshop/good name), and it is being covered by mechanical warranty.
The engine needs replacing, it has been in the shop over 1 month and has had 3 2nd hand engines put into it, two were not to standard so it is currently having a 3rd fitted as I write this....
The dealer has somewhat come to the party and is paying the excess on the mechanical warranty. The new motor (whenever it is finally repaired) will only come with a 3 month warranty from the workshop (doesn't seem right), and the mechanical insurance won't continue cover until a year has passed from the install completion. The dealer has said he will cover the gap in the middle.
Given what has transpired, I am in no way confident the vehicle is actually fit for purpose as a reliable commuter and occasional long distance open road vehicle (as I stated on purchase), especially given it has had three engine replacements to try and fix the blown engine.
I have told the dealer I want to return the vehicle, even stated im happy to trade and purchase something else more reliable from his yard, however he responded that the model and year have dropped a lot in value...probably looking around 10-12k, so I would need to spend more than I paid to essentially get a car the same price from the yard (so it would basically cost me 22k for a 16k car).
What are my rights here? What are the limitations for repairs? Surely a blown engine is beyond reasonable for a car I purchased 6 months ago?
I'm also acutely aware that it is of lesser value due to the fact the engine has been replaced and that it would be very difficult to sell privately, and buyers would demand an absolute bargain.
Does he have to take it back and refund?
Please no pointless "Craptiva" comments thanks, doesn't really help. Cheers
Hi there,
Under the CGA (Consumer Guarantees Act), there are two fault categories, serious and non-serious. both have remedies attached, with vehicle rejection listed as an option for serious faults. Because the dealer has remedied the fault, they would be seen to be fulfilling the conditions of the CGA and rejection may no longer be an available option. You may need to pursue further and involve a tribunal. More information can be found here: https://www.consumerprotection.govt.nz/help-product-service/cars/solving-issues-car-dealer/
I called my lawyer this morning whom has told me quite emphatically it isn't fit for purpose and should be refunded. It still isn't repaired so technically it hasn't actually been remedied, the fact it has also been through three replacement engines during the repair highlights it's not suitable as a daily commuter nor reliable, and therefore it should be returned.
Good luck to me I guess...