TWO-THIRDS of new car buyers experience problems in the first five years of purchase - and Holden gets the most complaints

  • More than two-thirds of new car buyers have problems in first five years
  • Consumer advocacy group CHOICE conducted the comprehensive survey
  • One of Australia's most popular car brands Holden topped the list
  • Bluetooth connectivity was the worst problem area for new car buyers
  • Car companies are forcing consumers to sign confidentiality agreements 

More than two-thirds of new car buyers have experienced vehicle problems in the first five years, with Holden topping the list and consumers' legal rights being compromised to protect the reputation of car manufacturers.

The comprehensive CHOICE survey revealed that some global car giants are covering up what is going on by forcing consumers to sign confidentiality agreements when car manufacturers fix their problems.

CHOICE's chief executive Alan Kirkland said that while some companies are doing the right thing, others are treating consumers' statutory rights to replacements, refunds or repairs as an optional extra.

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More than two-thirds of new car buyers have experienced problems with their cars in the first five years, a CHOICE survey has revealed (stock image)

More than two-thirds of new car buyers have experienced problems with their cars in the first five years, a CHOICE survey has revealed (stock image)

Holden, one of Australia's most popular car brands, topped the list of complaints with 68% of car owners experiencing complications (stock image)

Holden, one of Australia's most popular car brands, topped the list of complaints with 68% of car owners experiencing complications (stock image)

'This research shows that car companies are trying to cover up the scale of problems with new cars by forcing consumers to sign non-disclosure agreements in order to get problems fixed,' Mr Kirkland said.

BRAND - % WITH PROBLEMS 

Holden — 68%

Ford — 65%

Audi — 62%

Hyundai, Jeep, Nissan, Volkswagen — 61%

BMW — 57%

Mitsubishi — 55%

Kia — 54%

Subaru — 53%

Suzuki — 51%

Toyota — 50%

Honda — 49%

Mazda 44 %

Source: CHOICE 

The survey found that one of the country's most popular car brands, Holden, topped the list of brands with 68 per cent of owners experiencing problems with their new car, ahead of Ford and Audi.

In-car technology, such as Bluetooth technology, was the worst problem area for new car buyers, followed by faulty batteries, and complications with electrical components and car interiors. 

'While the majority of these issues were minor, 14 per cent of new car owners faced major problems that either caused the car to stop working or seriously impaired the operation of the car,' Mr Kirkland said.  

'The research findings convey the very real sense that car companies are off-loading sub-standard new cars on consumers and then using lawyers to fight consumers, forcing them to pay more to have their new cars fixed.' 

The consumer advocacy group surveyed new car owners who had bought their new car in the last five years, from January 2011 to 2016. 

CHOICE campaigns advisor Sarah Agar, who commissioned the research, said: 'New cars are expensive purchases, it's shocking to see that most consumers buying new cars should expect problems in the first five years of ownership.'

No car brand had an incident rate of less than 44 per cent.

Toyota, considered the benchmark in Australia, had problems in 50 per cent of cars.

When owners were forced to pay for repairs, it cost them $1295 in direct fees and lost wages, and 31 hours trying to resolve their problems.   

Overall, the majority of consumers CHOICE surveyed said they were able to resolve their problems. 

However, a significant number of car owners received no help at all, with women more likely to be denied a resolution to their problem. 

Consumers' legal rights are being compromised to protect the reputation of global car manufacturers (stock image)

Consumers' legal rights are being compromised to protect the reputation of global car manufacturers (stock image)

The second worst car giant was Ford, with 65 per cent of owners experiencing problems with their new car (stock image)

The second worst car giant was Ford, with 65 per cent of owners experiencing problems with their new car (stock image)

A Holden spokesperson told Daily Mail Australia that the company acknowledges its poor performance, admitting they were not happy with the results but will make an effort to improve.

'Our customers are a critical focus area and Holden has been making enormous efforts to resolve issues for customers as quickly as possible,' the spokesperson said.

'Holden is also proactive and quick to market with customer satisfaction or recall campaigns if we believe we may have identified an issue that could affect customers.

But the Holden spokesperson said confidentiality agreements are not normally carried out.

'Non-disclosure agreements are certainly not standard practice for Holden for any warranty or product issue. In some individual cases where issues are raised outside of warranty, resolution agreements are documented for clarity.'

'While the results of this survey stretch back over five years, this is clearly an industry-wide area that requires attention and is often driven by the increasing complexity of modern vehicles and vehicle interaction with mobile devices.'

German car giant Audi recorded 62% of new car owners experiencing problems with their cars (stock image)

German car giant Audi recorded 62% of new car owners experiencing problems with their cars (stock image)

CHOICE's research shows that car companies are trying to cover up the scale of problems with new cars by forcing consumers to sign non-disclosure agreements in order to get problems fixed (stock image)

CHOICE's research shows that car companies are trying to cover up the scale of problems with new cars by forcing consumers to sign non-disclosure agreements in order to get problems fixed (stock image)

One frustrated car owner told CHOICE in the survey that she wasted time when trying to resolve an issue with her car.

'As the problem existed when the new car was sold to me I felt the dealership should have gone more out of their way to remedy it at no cost or inconvenience to myself,' she said.

PROBLEM AREAS

In-car technology (Bluetooth connectivity) — 21%

Battery/electrical — 20%

Car interior — 20%

Engine — 15%

Tyres/wheels/suspension — 14%

Brakes — 11%

Bodywork/exteriors — 11%

Gears — 9%

Clutch — 6%

Exhaust — 4%

Odometer fraud — 2%

Source: CHOICE 

'Certainly there was no cost, but I was inconvenienced without a car and I needed to attend the repair shop twice. I wasn't offered a lift home or any flexibility in booking times.'

Under the Australian Consumer Law, customers who experience a major defect in a new car are entitled to choose between having it repaired or replaced. 

The survey comes ahead of the review of Australian Consumer Law this year, raising the question of whether consumers are able to exercise their rights adequately under Australia's existing law.

On Friday, Holden, a subsidiary of American car giant General Motors, announced that 400 workers from their car manufacturing plant in northern Adelaide would lose their jobs at the end of 2016 in an effort to reduce operating costs.

Daily Mail Australia has contacted the Federal Chamber of Automotive Industries for comment.

In-car technology, such as Bluetooth technology, was the worst problem area for new car buyers (stock image)

In-car technology, such as Bluetooth technology, was the worst problem area for new car buyers (stock image)

The comprehensive survey revealed that no car brand had an incident rate of less than 44 per cent (stock image)

The comprehensive survey revealed that no car brand had an incident rate of less than 44 per cent (stock image)

The survey comes ahead of the review of Australian Consumer Law this year (stock image)

The survey comes ahead of the review of Australian Consumer Law this year (stock image)

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