21/03/2023
BUYER BEWARE: HOW CAN A CONSUMER PROTECT THEMSELVES WHEN BUYING A RV IN AUSTRALIA
https://www.accc.gov.au/consumers/consumer-products-and-activities/buying-a-new-caravan
The Discovery RV Pty Ltd liquidation has demonstrated that consumers continue to remain very vulnerable to losing badly financially and in other ways if they agree to pay large sums up front on a promise of supply.
If anything goes wrong, it is incredibly difficult for the consumer to enforce their lawful rights.
So how can a consumer protect themselves? I believe there are a number of ways, not limited to the original purchase.
First and foremost, DO NOT PAY LARGE SUMS UP FRONT, especially cash. This is a red flag for a company that has liquidity problems or is running a scam needing cash.
If you fall in love with a caravan design from a particular company and they demand large up front payments, ensure that you speak with your bank about whether they do a 'chargeback' for goods not received when paid by credit card. Explain the circumstances and get something in writing. If so, put your funds on your credit card and use it to pay the deposit and stage payments. If not, find a bank that does.
Add a condition to your contract requiring the directors of the company to give you a personal directors' guarantee that your RV will be delivered at the specified price and time on the contract. If they refuse, they may have financial or other problems in the company. This is common for supplier creditors so why can't consumer creditors do the same?
Never, ever pay in full before the hand over. You will often find yourself kicked out the door very quickly because they have your money. Ensure that there is at least 20% still owing prior to handover and don't pay it until you have properly inspected the RV. Preferably get a professional inspection.
Always put a delivery date on the contract. Include other terms such as the maximum Tare; maximum loaded ball weight; minimum payload etc.
Always read the contract. Don't be pressured. In fact, you should take it to a lawyer. You are making a very large financial commitment. Most standard form RV contracts contain what I believe to be unfair contract terms and I will be taking this up (again) with the ACCC.
If you are paying stage payments, ensure you get photos of your RV in production, including identifying info such as the chassis number and VIN, before you make a payment. If you can, go to the factory and see it for yourself.
Ensure that your manufacturer's warranty is transferable to a subsequent purchaser. This appears to be standard in the motor vehicle industry, which has warranties that run more than five years, but not in the RV industry.
Ensure your warranty covers you if you intend on living in the RV permanently or to travel for an extended time BEFORE you purchase. In fact, make sure you get a copy of the warranty along with the contract to be able to review it carefully.
Know that you have consumer rights over and above any manufacturer's warranty. Don't believe them when they try to fob you off when the warranty expires. That is misleading and deceptive conduct.
I hope this information helps to protect those consumers who are members of this group and choose to listen to the wisdom of my seven years dealing with this rogue industry.
Under Australian law, products and services that consumers buy come with automatic guarantees that they will work and do what they’re supposed to do.
