Interior of car with airbags

What you need to know about car safety recalls

Who initiates vehicle recalls? What are your legal rights if your car has a safety alert or recall issued?

According to the World Health Organization, vehicles sold in 80% of the world’s countries fail to meet basic safety standards. Probably more so than any of your possessions, a car has the potential to inflict serious injury or worse on you, your passengers and fellow road users if something malfunctions.

It’s therefore incredibly important to make sure your car is as safe as

possible, by maintaining it well, but also keeping up-to-date on product safety alerts and recalls.

What is a car recall or safety alert?

A safety recall is a request to the car owner to contact their car manufacturer and arrange for a defective and safety critical component to be replaced, or for the problem to be rectified. Recalls can also be created if a motor vehicle fails to meet Australian Design Rules as well as other legal motor vehicle standards.

A safety alert is often issued before a recall, notifying members of the public that their vehicle is under investigation and has a possible safety defect. The alerts warn of the possible risks that arise from using the car.

Are car safety recalls common?

There have been several high profile car safety recalls making news headlines over the last few years. But safety recalls happen all the time. In fact, in May 2018 alone, there were 20 automotive recalls issued.

Who is responsible for issuing vehicle recalls?

Product safety regulation in Australia is administered by the Australian Competition and Consumer Commission (ACCC) in partnership with states and territories. The ACCC focuses on identifying and resolving severe injury risks and fatalities that result from the use of a product. Its responsibilities include transportation.

How does the ACCC find out about safety defects in cars?

Using a variety of data sources, including legally required safety reports that arise after cases of serious illness, injury or death, the ACCC will issue a product recall. It may also extend an international recall to cover Australia. Car manufacturers can also issue voluntary recalls, and government ministries may initiate a compulsory recall if needed. The ACCC additionally monitors the media and uses market surveys to identify non-compliant products.

How can I check if my car is under recall?

Automotive builders should contact you by letter to inform you of a recall that’s active on your car, but if you’re not the first owner, they might have problems tracking you down. Therefore, it’s best to take a proactive approach. If you buy a used car, inform the manufacturer that you are now the legal owner, as they may experience problems tracking the car once it changes hands.

Likewise, second-hand car sellers can also help. If you receive a letter relating to a recall for a car you’ve sold, contact the manufacturer to let them know. You can also supply them with the new owner’s details. Even if the car was previously stolen or scrapped, you should still inform them.

If you’re concerned that your car might be part of the Takata airbag recall, the largest vehicle-related recall in Australian history, check out the Takata recall list. You can also enter your vehicle’s VIN (the car’s unique identifying serial number) to see if your vehicle is on the register.

How quickly will my car be fixed?

The responsible car manufacturer or component supplier agrees with the ACCC on a timescale for replacing and fixing defective parts. In the case of the Takata airbag recall, a particular generation of the airbag was deemed the highest priority.

Car makers have to replace these within five days of receiving a replacement, though part and technician availability may delay the replacement.

Cars over six years old receive the next highest level of priority, then finally models under six-years-old have the lowest priority. The airbags on these models must be swapped by 2020.

If the deadline for replacements isn’t met, brands face a possible fine of $1.1 million.

Can a business sell a car with an active recall

In some instances, no, a car dealership cannot sell a car if it has an active compulsory recall in effect. For example, with the Takata airbag recall, companies have to replace the defective airbag before it can be offered for sale. There are penalties for failing to comply with this regulation.

If the car is under investigation, and the dealer knows that the car will be subject to recall down the line, they must tell you. The information has to be given both in writing and verbally.

Private sellers are not required to tell you about the recall.

Car recall tips

  • Contact your manufacturer. If your car has an outstanding recall placed upon it and you have questions, contact your vehicle manufacturer. There should be staff trained to answer questions about a recall. Also, by law, manufacturers must have a complaints handling procedure in place.
  • Don’t ignore the recall. If you ignore a product recall, you could face an increased and significant safety risk. Don’t delay in contacting the manufacturer.
  • Pass on new owner details. In some cases, you might receive a letter addressed to you as the owner of one of your previously sold or stolen vehicles. Perhaps you’ve moved home and received contact intended for the previous house owner. Make sure to contact the manufacturer to help them update their records and contact the current driver.
  • Check if you’ve had previous work done on the car. If you’ve had work done on your car, perhaps after an accident where the airbags deployed, the dealership or garage may have installed airbags or other components that are now affected by a safety recall. You should contact them to find out the best course of action.
  • Rights under a compulsory recall. You may also have additional rights if your car is under a mandatory recall. For example, the ACCC website states that owners of Takata airbag-affected cars have the right to loan/hire transportation if the replacement procedure takes more than 24 hours. Drivers who are elderly, infirm or disabled, living on an island with no dealer or living 250km from the nearest dealership may qualify for special arrangements.

Need a new car? Compare the finance options below

Rates last updated October 22nd, 2018
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Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Latitude Motor Vehicle Loan
From 6.99% (fixed)
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5.89% (fixed)
6.24%
$2,000
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A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
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Loans.com.au - New Car Loan
5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
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Beyond Bank Low Rate Car Loan
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5.97%
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1 to 7 years
$0
$175
You'll recive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
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1 to 5 years
$12
$195
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
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Westpac Car Loan
From 8.49% (fixed)
9.67%
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1 to 7 years
$12
$250
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Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
RACV New Car Loans
From 5.99% (fixed)
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A larger loan of $15,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
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You'll receive a fixed rate of 6.89% p.a.
Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.
Australian Military Bank Car Loan
From 5.71% (fixed)
6.57%
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1 to 7 years
$10
from $100 to $500
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
Community First Credit Union New Car Loan - Variable
From 5.34% (variable)
6.1%
$10,000
1 to 7 years
$5
$195
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Compare up to 4 providers

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Car Loan Offers

Important Information*
IMB New Car Loan

You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Latitude Motor Vehicle Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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