Caravan defects consumer rights: ACL guarantees for big purchases

A caravan or motorhome is one of the largest purchases many Australians ever make. When something goes wrong — water ingress, electrical faults, structural cracking, appliances that never worked properly — the dealer's first response is often to point at the manufacturer's warranty or, worse, to suggest the problem is wear and tear. Neither response ends the conversation. The Australian Consumer Law gives you statutory rights that sit on top of any warranty and cannot be signed away in a contract of sale.

Quick answer

What you can claim depends on how serious the defect is, whether you acquired the caravan as a consumer under section 3 of the ACL, and whether your right to reject is still available.

For a major failure — a defect so serious that a reasonable consumer, fully aware of it, would not have bought the van — you have two primary paths. If your right to reject is still available, you may reject the caravan and choose a refund or a replacement of the same type and similar value, if one is reasonably available. Alternatively, you may keep it and claim compensation for the reduction in its value. Those two are alternatives to each other.

Separately from that choice, section 259 may also let you recover other reasonably foreseeable loss caused by the failure — reasonable inspection, towing, storage or emergency accommodation costs, for instance — alongside whichever primary remedy you take. That depends on establishing the causal link, documenting the loss, and showing you acted reasonably to limit it.

For a non-major failure, the dealer gets the first reasonable opportunity to fix it. If they refuse or take too long, you may have it fixed elsewhere and recover the reasonable cost, or reject the goods.

The guarantee runs against the dealer who sold you the van, so "take it up with the manufacturer" is not a complete answer. The manufacturer is a separate route: sections 271 and 272 may support a direct damages claim against them for certain failures — damages only, not the refund-or-replacement election you have against the dealer.

What the law actually says

The ACL is Schedule 2 to the Competition and Consumer Act 2010, and it applies automatically to any sale within the consumer definition. Most caravan purchases qualify: the price is $100,000 or less, or the caravan is of a kind ordinarily acquired for personal, domestic or household use. Either limb is enough. Section 3 also excludes goods acquired for re-supply or for use in a production, manufacturing or repair process.

The guarantees that matter most are:

• Section 54 — Acceptable quality. Goods must be safe, durable, free from defects, acceptable in appearance and fit for the purposes they are commonly supplied for. For a caravan that means weatherproof, structurally sound, with functioning appliances, plumbing and electrics. Acceptable quality is judged in context — the nature of the van, its price, any statements made about it, and the surrounding circumstances — so more is expected of a new van at a significant price than an old cheap one. Water leaking through the roof of a new caravan after the first trip is unlikely to meet the standard.
• Section 55 — Fitness for a disclosed purpose. If you told the dealer what you needed — extended off-road touring, full-time living, a particular tow vehicle — and it was reasonable to rely on their skill and judgment, the van must be fit for it.
• Section 56 — Match the description. If the brochure or contract promised a payload rating, solar system or construction type, it must match. A van sold as "off-road capable" that cannot handle gravel may breach this.

Section 259 gives you the right to require a remedy. What you get — and who chooses — depends on whether the failure is major.

Major failure

A failure is major under section 260 if:

• a reasonable consumer, fully aware of the nature and extent of the failure, would not have acquired the goods;
• the goods depart significantly from their description, or from any sample or demonstration model shown to you;
• the goods are substantially unfit for their common purpose and cannot easily and within a reasonable time be remedied to make them fit for that purpose;
• the goods are substantially unfit for a particular purpose you disclosed and cannot easily and within a reasonable time be remedied to make them fit for that purpose; or
• the goods are unsafe.

Two or more failures can be considered together. They amount to a major failure if a reasonable consumer, fully aware of their nature and extent taken together, would not have acquired the caravan. There is no fixed number of repair attempts that must happen first. This matters more for caravans than almost any other purchase, because vans rarely fail in one dramatic way — they accumulate faults, and each one looks minor in isolation. The ACCC has said so directly in its work on the caravan industry: multiple minor failures can be considered a major failure, entitling the buyer to a refund or replacement of their choosing.

Persistent water ingress that damages the structure, an electrical fault creating a fire risk, or a chassis defect making the van unsafe to tow may amount to a major failure, depending on the severity, the safety implications, whether it can be repaired, whether it recurs, and the evidence available. A single faulty gas burner replaceable in an afternoon probably does not — though it still triggers the non-major remedies.

Non-major failure

Section 261 lets the supplier choose how to remedy a non-major failure — repair, replacement or refund — within a reasonable time. If the dealer refuses or takes too long, section 259 lets you have the work done elsewhere and recover the reasonable cost, or reject the goods, subject to the rules below.

When the right to reject can be lost

Under section 262, the right to reject is lost if:

1. The rejection period has ended. This is widely misunderstood. It is not a fixed number of days, and it does not simply mean you have owned the van "too long". It is the period from supply within which it would be reasonable to expect that kind of failure to become apparent — judged on the type of goods, the use they are likely to be put to, and the length of time and amount of use that is reasonable for them. Structural or water-ingress defects in a caravan may reasonably take a season of touring to reveal themselves, and the period is assessed accordingly.
2. The van has been lost, destroyed or disposed of.
3. It was damaged after delivery for reasons unrelated to the failure.
4. It has been attached to property in a way that cannot be undone without damage.

If you reject: notify the dealer in writing, state the grounds and the remedy you have chosen, and make the caravan available to them. Ordinarily rejected goods are returned — but under section 263, where return would involve significant cost because of the nature of the failure or the size, height or method of attachment of the goods, the supplier must collect them at its own expense. A large, damaged or unsafe caravan may fall within that rule, particularly where towing it would cost significantly or raise a safety concern. Do not tow an unsafe van merely to return it, and confirm collection arrangements in writing before paying for transport.

Disclaimers cannot remove your rights

Under section 64, any term purporting to exclude, restrict or modify a consumer guarantee is void to that extent. "No refunds on caravans" or "warranty is your only remedy" does not remove your statutory rights.

When this applies (and when it doesn't)

The guarantees apply when:

• You bought from a business — a licensed dealer, manufacturer's outlet or retailer — not a private individual.
• You acquired the van as a consumer under section 3 (see above).
• The defect is a genuine failure, not damage you caused.
• You have proof of purchase — receipt, finance contract, dealer invoice or bank record.

They are less likely to apply when:

• You bought privately. The ACL applies to those acting in trade or commerce. But if the seller is really running a business — buying, renovating and selling vans regularly — it may apply despite a private-sale presentation.
• The defect was disclosed before purchase and reflected in the price.
• The damage was yours — overloading, towing beyond rated capacity, or an accident.
• The acquisition falls outside section 3. Commercial use does not automatically remove coverage: either the monetary limb or the ordinary-use limb may still be satisfied. What takes a purchase outside are the section 3 exclusions — acquisition for re-supply, or for use in a production, manufacturing or repair process. A hire-fleet van needs closer analysis than a family tourer.

What to do today

1. Document everything. Photograph every defect, note when you first saw each one, and log every conversation with the dealer. For structural or safety issues, get an independent inspection report from a qualified caravan repairer — it is often the most persuasive evidence you will have.
2. Gather proof of purchase. Dealer invoice, finance agreement or bank statement. The original paper receipt is not required.
3. Write to the dealer. State the purchase date, describe each defect, explain why the van fails the acceptable quality guarantee under section 54 (or whichever applies), and say what remedy you want. If you say the failure is major, explain why — and if you are rejecting, say so explicitly and name your election between refund and replacement.
4. Give a reasonable deadline. For complex structural defects, 14 to 21 days. Say what you will do if there is no response.
5. If you allow another repair attempt, put it in writing that the problem remains unresolved and you do not accept the repair as settling your claim. That record is useful evidence, but no particular wording is required — accepting a repair does not automatically waive your statutory rights, and a long repair history can support a major-failure case rather than undermine it.
6. Agree the scope in writing before any work. If the dealer repairs the van without agreement on scope and cost, it can complicate a later rejection.
7. Keep evidence of additional loss. Retain invoices and receipts for reasonable inspection costs, towing, storage, temporary accommodation, alternative transport and anything else the defects forced you to spend. Whether you recover these depends on causation, reasonable foreseeability, the evidence you can produce, and whether you took reasonable steps to limit the loss.

Not sure how to frame the letter? fairgo can generate a demand letter in about 90 seconds. The wizard identifies the relevant ACL sections and produces a letter you send under your own name.

What if the business refuses

• Your state or territory Fair Trading body. A free conciliation service that contacts the dealer for you. It is voluntary — the body cannot make binding orders or compel payment, and the dealer can decline — but it is often effective, because dealers prefer to avoid a formal complaint on record. Details at /agencies.
• A court or tribunal. Only these can make binding orders. The correct forum depends on the dispute, the amount and the enabling legislation in your state. Tribunals such as NCAT (NSW), VCAT (Victoria) and QCAT (Queensland) may have jurisdiction over some ACL disputes, but for higher-value caravan claims a court may be the correct forum instead. Confirm jurisdiction, thresholds and fees before filing, and ask about fee waivers. You can usually appear without a lawyer.
• The ACCC. Investigates systemic conduct, not individual disputes. If your defect looks like a known model fault affecting many owners, a report may contribute to broader action even though it will not resolve your case.

For how the different bodies divide up, see our guide to which consumer regulator to contact. The issues facing caravan buyers closely parallel those in new car lemon disputes.

Common mistakes

• Treating the manufacturer's warranty as your only right. The warranty is a contract with the manufacturer; the consumer guarantee is a statutory right against the dealer, and it often covers a longer period and wider range of defects. "Your warranty has expired" does not end your ACL rights.
• Not keeping repair records. Where the same fault has been attended two or three times without success, that history goes directly to whether the failure is major. Log every attempt, with dates and what was done.
• Treating a written reservation as a magic formula. Confirming in writing that a repair does not settle your claim is useful and avoids ambiguity, but no special words are needed and accepting a repair does not automatically waive your rights.
• Assuming you must transport a rejected van yourself. Where return would cost significantly because of the van's size or the nature of the failure, section 263 puts collection on the supplier.
• Waiting too long. Delay can make it harder to establish that the caravan failed to comply with the applicable guarantee when it was supplied, and the rejection period may also expire. Raise it in writing as soon as you identify a problem.
• Assuming private sellers are always outside the ACL. If they are actually trading — buying, renovating and reselling — the ACL may apply regardless of how they advertise.
• Going straight to the manufacturer. Your primary right is against the seller. Start with the dealer.

For more on the acceptable quality guarantee, see our deep-dive on section 54 of the ACL, and if you have already been refused, what to do next covers the escalation steps.

Related reading

• New car lemon rights in Australia
• Section 54 ACL — acceptable quality explained
• Business refused your refund? Here's what to do next
• What "major failure" really means under the ACL

This article is general information about Australian Consumer Law, not legal advice. The ACL is complex and your situation may have details that change the analysis. It also describes complaint and escalation pathways — including Fair Trading conciliation, state tribunals, courts, and the ACCC — whose scope, rules, thresholds and processes sit outside the ACL and can change. Confirm the current position with the relevant body before lodging any complaint or claim. For advice on your specific case, see your state's Fair Trading body — full list at /agencies.