Barry Leonard Allen takes Mercedes-Benz dealer to tribunal

A Brisbane car dealership must refund the cost of a ute that was deemed unroadworthy less than three years and 40,000km after purchase.

The Mercedies X350d (like the one pictured) broke down twice within a month of delivery

A Brisbane car dealership has been ordered to refund the cost of a “reliable workhorse” Mercedes-Benz ute in return for the vehicle which was deemed unroadworthy less than three years and 40,000km after purchase.

Barry Leonard Allen took delivery of a brand new 2018 Mercedes-Benz X350d from Mercedes-Benz Macgregor on September 11, 2020, for $72,290 for “an Australian outback working holiday” that never occurred, a tribunal heard.

Between then and October 9, 2020, it broke down twice and was in Mr Allen’s possession for about three days, prompting him to request a new vehicle several times.

The dealership refused but paid for a bull bar to be installed.

The ute had a one-year service in April 2021 but was returned for repairs in May 2021 for about one week.

Around that time Mercedes-Benz Macgregor offered Mr Allen, who continued asking for a full refund, $65,000 for the vehicle.

Mr Allen later had it shipped to New Zealand where it developed an abnormal turbo noise and by March 2022 it did not have working airbags.

Mr Allen launched a case against New Centenary Pty Ltd, trading as Mercedes-Benz Macgregor, in the Queensland Civil and Administrative Tribunal where Mercedes-Benz Australia/Pacific Pty Ltd was added as a respondent.

In March 2023 the vehicle, which had 39,931km on it, was brought back to Queensland where it failed a roadworthy inspection due to leaking oil and fuel, the tribunal heard.

A Motor Vehicle Assessment ordered by the tribunal found a number of leaks, rust on the bonnet and abnormal turbo noise and questioned whether the ute had been stored or maintained inappropriately causing premature wear on systems.

In August 2023 a vehicle recall on the Mercedes-Benz X class 2017 – 2019 was issued due to an oil leak that could cause a braking issue.

The respondents submitted to the tribunal that the ute’s failures were minor and “simply remedied” which they would be willing to do.

They also argued Mr Allen had not properly rejected the vehicle pointing to his continued use of it and taking it to New Zealand.

The respondents claimed installation and later modification of the bull bar and the vehicle’s export to New Zealand were “breaks in causation” that meant Mr Allen was not eligible to claim damages.

The tribunal disagreed and also found Mr Allen had properly rejected the vehicle.

It found the ute, which was marketed as a “ ‘robust’ and ‘reliable workhorse’”, was not of acceptable quality at the time of supply and a reasonable consumer fully acquainted with the nature and extent of the vehicle’s failure, would not have acquired it.

“The Tribunal is satisfied the failure is a major failure,” it said in a decision published Friday.

The tribunal ordered Mercedes-Benz Macgregor to collect the vehicle and pay Mr Allen $73,088.51 which included the cost of a previous tow and filing fees.

The tribunal heard that for various reasons Mr Allen was reluctant to return the ute to the dealership. As a result the tribunal ordered that if he refused to provide the vehicle to the dealership he would be ineligible for a refund.

It dismissed Mr Allen’s claim for $19,842 in costs incurred in exporting and reimporting the ute.