Faulty car purchases on the rise
Half of the second-hand cars being sold in Australia are encountering major mechanical problems, according to a survey by car insurer Budget Direct.
In the capital cities, some 25% of Brisbane, Melbourne and Sydney car owners are discovering mechanical faults after purchase while 31% of Brisbane motorists, 20% of Melbourne drivers and 19% of Sydney owners have admitted to trading in a vehicle to a car dealer knowing it had existing mechanical problems.
But Budget Direct spokesman Richelle Ward told insuranceNEWS.com.au the rise in dodgy used car sales won’t affect premiums.
“A vehicle’s mechanical state has no bearing on the insurance premium,” she said.
But Ms Ward says insurers have a vested interest in what is happening on the roads and to mitigate the problem need to increase consumer awareness of the problem and offer advice on how they can protect themselves when buying a second-hand car.
In the capital cities, some 25% of Brisbane, Melbourne and Sydney car owners are discovering mechanical faults after purchase while 31% of Brisbane motorists, 20% of Melbourne drivers and 19% of Sydney owners have admitted to trading in a vehicle to a car dealer knowing it had existing mechanical problems.
But Budget Direct spokesman Richelle Ward told insuranceNEWS.com.au the rise in dodgy used car sales won’t affect premiums.
“A vehicle’s mechanical state has no bearing on the insurance premium,” she said.
But Ms Ward says insurers have a vested interest in what is happening on the roads and to mitigate the problem need to increase consumer awareness of the problem and offer advice on how they can protect themselves when buying a second-hand car.