The weird warranty red tape catching new car buyers off guard
Australian car dealers are sounding the alarm bell for drivers who have purchased an electric car from a new international brand.
When you’ve purchased a new car, the last thing you’re thinking of is the vehicle breaking down.
Though a majority of buyers think new car warranties are the antidote to any major car problem, a new report commissioned by Australia’s peak dealership body has revealed major consumer warranty issues that lead to lengthy delays in repairs and refunds.
According to a July 2026 report by the Australian Automotive Dealers Association, some consumers can face wait times of six to eight weeks due to delays in repairs and technical information, as well as other warranty problems that must be approved by the car manufacturer.
In more severe cases, state and territory consumer tribunal hearings can take anywhere from 12 to 18 months to resolve.
The report also highlighted a structural imbalance, where dealers are legally responsible for upholding consumer laws while the management of vehicle defects is dictated by the manufacturer.
While dealers must legally abide by the current consumer laws, meaning refunds and the warranty process – such as loan car hires, repairs, diagnostics and buybacks – are generally paid for by the dealership, the AADA's report said the process is often convoluted and can leave most dealers out of pocket.
Some dealers said numerous consumers face "significant" repair delays, particularly for EVs. Some owners face a six-week delay just for diagnosis due to a backlog of workshop jobs.
Additionally, warranty frustrations are also caused by long wait times for spare parts, where some parts such as an EV battery cannot be shipped quickly.
An anonymous car dealer mentioned in the report said warranty jobs are often pushed to the back of the queue due to the lack of manufacturer reimbursement.
“I’ve only got so many hours to sell. Why do I want to fill my workshop up with warranty work from a brand that won’t reimburse me the hours? That’s having a detrimental effect on the customer,” they said.
“The smaller dealerships will just try to push the warranty work to one of the bigger dealers, and it’s really inconvenient to a customer because they’ll have to go further to get their car serviced and they’ll get the warranty done.
“The customer either has the election of waiting an onerous period of time to get their car repaired with their local mechanic or shop around and being inconvenienced with a different dealership who’s prepared to take it on.”
According to the AADA commissioned report, some drivers who have purchased models from new car brands also risk facing lengthy wait times for repair jobs under warranty due to extended approval times.
"For instance, [for one brand] issues over $5000 must go to China for an eight-week approval process. Another brand's process is described as clumsy and slow. Language barriers between the OEM and dealer can exacerbate time delays. Later claims are often rejected by an automated system, even if the repair was pre-authorised."
Further compounding EV issues is the fact that some manufacturers are tightening their control over their spare parts supply and repair information.
A spokesperson for the Insurance Council of Australia told Drive in June 2026, “The insurance council is aware that certain brands are deliberately restricting parts sales to repairers outside their own networks. We understand this includes one popular EV brand and is increasingly being adopted by new market entrants.”
“Restricting qualified repairers’ access to parts and technical information limits competition, drives up repair costs and ultimately places upward pressure on car insurance premiums.”
Though the influx of new brands is driving retail prices down further, some fledgling brands have been warned by the Prime Minister that they can’t prioritise sales without setting up an aftersales and maintenance presence.
Further compounding EV issues is the fact that some manufacturers are tightening their control over their spare parts supply and repair information.
A spokesperson for the Insurance Council of Australia told Drive in June 2026, “The Insurance Council is aware that certain brands are deliberately restricting parts sales to repairers outside their own networks. We understand this includes one popular EV brand and is increasingly being adopted by new market entrants.”
“Restricting qualified repairers’ access to parts and technical information limits competition, drives up repair costs and ultimately places upward pressure on car insurance premiums.”
Though the influx of new brands is driving retail prices down further, some fledgling brands have been warned by the Prime Minister that they can’t prioritise sales without setting up an aftersales and maintenance presence.
Some new fledgling brands were called out in the report due to their alleged failure to communicate with dealers and consumers alike.
According to the AADA report, “Established brands tend to be more responsive, whereas some newer brands, especially Chinese, can be erratic, slow, and often push responsibility back to the dealers. Some OEMs have become dictatorial or uncommunicative, often refusing to share technical data that could assist in diagnosing recurring issues.”
