Warranty Claims: A Case Study

Public news

Every MTA member can encounter an occasional experience where a customer returns claiming warranty for work completed on their vehicle.

Many members will offer some limited warranty on parts and/or labour, or a manufacturer’s warranty that may apply to parts. In addition to these, the Australian Consumer Law (ACL) will apply to certain consumer guarantees on goods and services.

At the last Auto Repair and Engineering Division meeting, some members in attendance recommended more case studies like the following be shared and assistance from us on how to deal with it.

In this example, the customer made the following warranty claim:

  • The customer claimed that the work performed and parts replaced on their vehicle should have lasted longer than 10 months or 15,000 -20,000km and therefore, they must have been fitted incorrectly.
  • The customer demanded the repairer to, “fix it all for free or I’ll take you to court”.

In cases like this, we recommend a simple common sense approach to managing the claim to avoid further escalation of the dispute and meeting expectations by the options you provide in your response. If there is a valid warranty claim, or claim under consumer guarantees, members should consider completing repairs, replacing defective parts, or if necessary, offering a refund.

Our recommended response to this type of claim is a letter acknowledging the complaint, highlighting further steps. You can access this template by clicking here.

We also recommend using our Repair Authority upfront before work commences on any car to meet your legal obligations and explain what happens in the event of a claim, should an example like this occur. Using our Repair Authority allows the customer the opportunity to make a fully informed decision about whether to accept or decline your terms and conditions before any work commences.

For a Repair Authority sample, click here and click here to order one for your business.

We encourage you to contact the MTA’s WR team by clicking here if you have any concerns or questions about responding to any claims.

If you need any help with meeting your warranty obligations, your membership also provides free support from our Industry Engagement Specialist, Paul Back. Contact Paul by clicking here.