A major new report from the Australian Competition and Consumer Commission (ACCC) has brought national attention to what ICAN and its partners have long warned about: the serious and far-reaching harm caused by the sale of faulty second-hand cars across Australia.
The report, Consumer issues in the sale of second-hand cars, highlights the systemic nature of the problem and reinforces the need for urgent reforms to protect consumers, particularly those in regional and remote communities and First Nations households who rely heavily on second-hand vehicles.
ICAN’s Advocacy Front and Centre
ICAN’s Advocacy Manager, Jillian Williams, welcomed the ACCC’s findings and underscored the disproportionate impact on the communities ICAN serves.
“Cars are essential to living and participating in our communities. But with new vehicles increasingly out of reach for people on low incomes, access to safe, affordable, and durable second-hand cars is critical.
“ICAN has been raising the alarm for years about certain dealerships in this region pushing lemon cars with lemon loans onto the people who can least afford them. Enough is enough. We need urgent action to strengthen consumer protections and hold these dealers to account.”
For ICAN, the report validates years of casework and frontline experience showing that predatory sales and lending practices are not isolated incidents, they form a pattern of conduct that erodes financial wellbeing, undermines community participation, and deepens vulnerability.
ICAN Financial Counsellor, Alex Price-Busch added “Through our financial counselling service, we see an alarming number of people who have been sold a faulty car and saddled with an unaffordable loan, only for the vehicle to break down, fall apart, or become undriveable within days or weeks. When the car fails, the dealerships shrug off responsibility, and the person is left with no transport, no support, and a crushing debt they cannot repay.
These predatory practices are trapping people in cycles of hardship and isolation. North Queenslanders deserve better, and we’re calling for immediate, meaningful reforms that will stem the harm caused by lemon cars.”
Consumer Advocates Nationwide Echo ICAN’s Concerns
Advocates across Australia are also calling for strengthened regulation, better enforcement, and penalties that deter harmful behaviour.
Stephanie Tonkin, CEO of Consumer Action Law Centre, highlighted the wide-reaching consequences for affected consumers:
“People need cars to get to work, to school, to doctors and they are one of the biggest purchases a consumer makes – the impacts of a defective car reverberate throughout people’s lives.”
Alan Gray, Managing Director of Bush Money Mob, spoke to the devastation seen in remote Aboriginal communities:
“Years of work as a financial counsellor in Arnhem Land, the Kimberley, and the Pilbara have shown me that every family of remote Aboriginal people has at least one member whose financial life has been destroyed by the appalling opportunism of lemon car sales, lemon finance, and/or the debt collectors who feed on the first two. Civil penalties cannot come swiftly enough.”
In the Riverina region, Sarah Rodgers, Director of Hume Riverina Community Legal Service, emphasised the heightened vulnerability caused by limited transport options and long distances:
“With vast distances to travel, limited—if any—public transport, and few repairers, buying a dodgy second-hand car can be devastating for regional people. We see the harm caused by the sale of faulty second-hand cars, from compounding financial hardship to risks to personal safety. Consumer protections and regulation of licensed car traders must be strengthened.”
Shelley Hartle, First Nations Policy and Project Manager at Consumer Action, highlighted the structural issues that allow harmful practices to persist:
“We are disappointed at the failure to call out what is a glaring issue, motor car traders are in many cases capitalizing on loopholes in state-based regulatory and dispute resolution systems, as well as targeting consumers who may be experiencing vulnerability. Consumer advocates nationally, including those who are supporting First Nations consumers, have been calling out this targeted practice for decades and more attention needs to be focussed upstream to deter these behaviours in the first place.
“In Victoria our No More Gammin Cars project aims to illuminate these practices, specifically for First Nations consumers, and co-design the reforms required in order to reduce the harm caused to First Nations communities who are significantly overrepresented in our case work.”
Additional voices from Consumer Credit Legal Service (WA), LawRight’s Homelessness Law, Mob Strong Debt Help, and Westjustice provided further evidence of the diverse and profound impacts seen in communities across the country.
ICAN’s Commitment Going Forward
As one of the leading advocates working directly with First Nations consumers in North Queensland and beyond, ICAN will continue to push for reforms that ensure access to safe, reliable, and affordable second-hand vehicles. The ACCC’s report strengthens the case for decisive government action and industry accountability.
ICAN remains committed to supporting communities, amplifying consumer voices, and driving systemic change that reduces harm and promotes financial wellbeing.