$12k car from Hamilton yard clapped out after four months on the road

Wednesday, 17 June 2026

An Hamilton car dealer has been ordered to refund a customer the full purchase price of a used van after its engine failed just four months after purchase, despite the dealer replacing the engine at its own cost.

The Motor Vehicle Disputes Tribunal ruled that The Cheap Car Place Limited must pay Leanne Forbes $12,000 and take back the 2012 Nissan Serena hybrid van she bought in September 2025.

Forbes purchased the van for $12,000 when it had travelled 106,048km. After around four months and an additional 3,390km of driving, she discovered the vehicle was losing oil.

An investigation found the engine had effectively worn out due to hardened valve seals and worn piston rings and required replacement.

The dealership replaced the engine with a second-hand unit at its own expense, but Forbes refused to accept the repair and instead sought a full refund.

The Tribunal found the vehicle breached the Consumer Guarantees Act because it was not of acceptable quality.

“I consider that concession properly made, for there would not be many cases in which the reasonable consumer would regard it as acceptable that an engine require replacement within four months of purchase and after only 3,390km of travel,” the decision said.

The tribunal also found the defect was serious enough to amount to a failure of “substantial character”, giving Forbes the right to reject the vehicle entirely rather than accept repairs.

A key issue in the case was whether Forbes lost that right after continuing to use the van once the replacement engine had been installed. She drove the vehicle a further 1863km and caused moderate damage to the front bumper while the dispute was ongoing.

The dealer argued it had the right to repair the vehicle and maintained Forbes still owned it after the engine replacement.

However, the tribunal found Forbes had validly rejected the vehicle on February 9 this year and ownership legally reverted to the dealer from that date.

The Tribunal ruled that subsequent use of the vehicle did not undo the rejection because Forbes had repeatedly made it clear she wanted a refund and only took the van back because the dealer insisted.

While the Tibunal noted the dealer may have a separate legal claim over the bumper damage, it said that issue fell outside its jurisdiction.

The Cheap Car Place was ordered to pay Forbes $12,000 within 10 working days, and Forbes must return the vehicle within three working days of receiving the money.