Australia’s consumer protection framework for new vehicles is no longer delivering fair or timely outcomes for motorists or dealers, according to a new independent review commissioned by the Australian Automotive Dealer Association (AADA).

Prepared by Emeritus Professor Jenny Buchan, the report concludes that shortcomings in the Australian Consumer Law (ACL) are contributing to lengthy delays in resolving vehicle fault claims, while placing increasing pressure on dealers and state-based tribunals.

Among its findings, the review says consumers can wait between six and eight weeks for manufacturers to process defect claims. If disputes escalate, hearings before state and territory tribunals can take between 12 and 18 months to reach a resolution.

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The report also raises concerns about inconsistent participation by some vehicle manufacturers in Australia’s consumer law processes, alleging that reimbursement claims are sometimes rejected and dispute resolution efforts are not always adequately supported.

The findings build on concerns raised by the Australian Competition and Consumer Commission (ACCC) in a 2017 market study, which recommended manufacturers improve their handling of consumer guarantee claims and review their commercial arrangements with franchised dealers. According to the new review, many of those issues have since worsened.

The report comes as Australia’s automotive market continues to expand rapidly, with industry forecasts suggesting the number of brands operating locally could rise to 75 within the next five years—an increase of 92 per cent over the past decade.

AADA chief executive James Voortman said the review highlighted the need for legislative reform.

“The evidence presented in this report indicates that some international manufacturers are either failing to engage with, or are not adequately responding to, Australia’s consumer law processes,” he said.

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He said unclear legislative definitions and inconsistent procedures were increasing costs, placing additional strain on tribunals and leaving consumers without access to their vehicles for extended periods.

In response, the AADA is calling on the Federal Government to require manufacturers to participate earlier and more consistently in vehicle-related consumer disputes, review key definitions within the Australian Consumer Law and undertake a broader examination of how the legislation operates in the new vehicle market.

Mr Voortman said buying a vehicle is typically the second-largest purchase Australians make after a home, making an efficient and transparent dispute resolution process essential when faults arise.