Sally and David thought they’d found a deal when they bought a relatively cheap caravan earlier this year. (Source: Supplied)
Sally and David Watts had owned caravans in the past. But they were in the market for something new earlier this year, when they happened to see what they thought was a seriously great deal.
The couple jumped on it and ended up forking out just $52,440 for what they were told was a brand new caravan at one of the cheapest price points in the market. But they quickly found numerous faults with the vehicle and say the purchase turned into a nightmare with a months long battle over a full refund which the company denied.
“We thought because we were going to go and live off-grid for a while. And we just saw this company advertising, they had some good deals going so we decided to go with them,” David told Yahoo Finance.
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They purchased the caravan in March, but when they went to pick it up David immediately noticed what he believed was pretty shonky workmanship, asking for a number of issues to be fixed before he parted with it from the lot.
“I noticed the air conditioning wasn’t working, so I rang him up. He said, ‘Oh, we forgot to connect the inverter for you’.
“We just kept finding so many things wrong,” he said.
“The water tanks were leaking just before we were about to hit the road.
“The reverse cameras weren’t working – that wasn’t wired up properly … and then we just found so many rusted spots everywhere.”
On their first trip, they had to cut it short because they were so worried about the quality of the vehicle and whether it was really fit for purpose.
“We were going away for over two weeks, and after about five or six days, we said let’s throw it in and come home,” Sally said.
The couple purchased the entry-level van from Union RV in Victoria and soon asked to return it for a full refund, emailing the business with an exhaustive list of the problems they had found with the caravan.
The company refused and told them they could bring it back to be repaired at no extra cost. However the couple told Yahoo Finance they didn’t trust the dealer and didn’t want to deal with them any further.
Sally and David had the vehicle inspected by an independent third party. A report produced by service repair shop Caravan Care, seen by Yahoo Finance, highlighted plenty of issues including holes, water leaks, screws penetrating the other side of walls, electrical conduit not secured properly, rusted screws and split pins, external decals peeling, deteriorating roof seals and more.
“Upon inspection we were presented with a list of 20 items that the client had deemed as faulty and required immediate attention. Upon inspection it was concluded that the faults remained and needed to be rectified,” the independent report said.
There are more than 900,000 registered caravans on Australia’s roads at last count. (Source: Getty) · Getty Images
In statement, Union RV’s lawyers said the company had repeatedly urged the customer to return the van for free repairs.
“After reviewing it, our client noted that all identified items were repairable and fell within the scope of work they were already prepared to undertake [at no extra cost].
“The only step our client has been unable to agree to is providing a full refund without first receiving the caravan back for inspection – something that is both a legal and practical requirement for any refund or replacement to be considered,” they said.
“Our client remains willing to resolve all repairable issues promptly once the caravan is made available to them.”
The couple considered taking the matter to VCAT but are apprehensive about dealing with the process which they believe would be dragged out for years.
David, who is a trained mechanic, has been slowly fixing the van over recent months and now plans to just walk away and get any more serious repairs done elsewhere. But the couple wanted to warn others about making sure to do thorough quality checks and research when buying a caravan.
“We can’t sell it, right? Because you don’t want to give the problem to someone else. So we just have to stick with it,” he said.
“Right now, I could not sell this caravan, because I will feel guilty giving it to someone else.
“We just want to move on, but we want people to know just be careful when you buy caravans, and make sure you go over check everything before you drive it out the door.”
The Australian Competition and Consumer Commission (ACCC) has taken the caravan industry to task in recent years, taking action against a number of manufacturers over misleading advertisements and poor service.
In 2022, the consumer watchdog issued a warning saying it was putting the caravan industry “on notice for poor treatment of consumers” and released a report detailing problems including long wait times for deliveries and repair work, as well as misleading advertising and false warranty promises.
Speaking to Yahoo in August, a spokesperson for the ACCC said it continues to monitor the sector and that “consumers have a right to expect certain things when they buy a caravan”, adding that redress for any improper defects can be pursued under Australian Consumer Law.
“Where a caravan fails to comply with one or more of the consumer guarantees, the supplier must provide the consumer with a remedy, which can be a repair, replacement or refund, depending on the circumstances,” the spokesperson said.
Caravan Industry Association of Australia spokesperson Luke Chippindale also urged buyers to do their research when looking for a caravan.
“Do your homework, there are a number of manufacturers that have been building high quality Australian caravans for many years, this generally means they have been doing something right,” he told Yahoo Finance.
He pointed to RVMAP as a great place to start, which has a list of accredited caravan businesses that have been confirmed to adhere to the Australian Design Rules and federal regulatory compliances. You can find that list here.
Last week saw the industry hit with another local caravan manufacturer going into voluntary administration.
Luxury off-road caravan manufacturer Zone RV, based in Queensland, is the latest company to collapse, with customers and suppliers waiting to see what happens next.
It comes after Victorian caravan manufacturer Tango Caravans collapsed late last year, leaving customers and suppliers out of pocket. One young couple who spoke to Yahoo lost $94,000 after paying for a van that was never delivered.
Another pair of retirees told Yahoo they were asked to pay $72,000 for the final payment of their caravan only to soon discover through the news that the dealership had been plunged into liquidation in August 2024, owing 70 unsecured creditors, mainly customers, a total of $3,283,688 — as well as nearly $50,000 in wages, annual leave and superannuation.
It was at least the fifth Australian caravan or motorhome company to go bust in recent years.
Chippindale said the industry is facing a number of headwinds and challenges that have plagued domestic manufacturing in recent times.
“Rising labour costs, escalating energy prices, and the broader cost of doing business have pushed many manufacturers to the brink,” he lamented.
“Caravan manufacturing remains a hands on industry, such is its complexity it still means a labour-intensive build, heavily customised, and reliant on supply chains that are often under tension.”
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