Major failures by Australian caravan manufacturers put owners at risk

12 October, 2022 By: Brendan Batty

What is an acceptable major failure rate for a product worth tens of thousands of dollars?

The caravan industry is grappling with just that question, on the back of an Australian Competition and Consumer Commission (ACCC) report that suggests around one out of every 100 caravans, motorhomes, and camper trailers sold in 2020 and 2021 are so defective from the factory that the customer should get a full refund or replacement. And that’s just the figures from people who completed the survey; there could be many more who didn’t.

Over the last five years, the ACCC has noted an increase in complaints about the quality of caravans and RVs (260 in 2017 versus 448 complaints in 2021), so in November 2021, it engaged with consumers and suppliers to better understand the issues raised. Alarmingly, of the 2270 survey respondents, 80 per cent (1814 respondents) stated they’d experienced a fault with their caravan, and 50 per cent of those classified that fault as major.

Even if those results are best-case scenario, that’s 900 caravans or RVs potentially unusable straight off the factory floor. Over 150 different brands were represented in the survey, according to the ACCC, highlighting how widespread the issue may be.

Amongst unprecedented demand and the popularity of camping and caravanning as a result of the pandemic, it raises the question, can you be confident buying a new caravan or RV?

RELATED: Buying a caravan - what to look out for »

Demand for caravans has soared

The caravan and camping industry is in massive overdrive right now for all the reasons the rest of the travel industry is still struggling - many people are still unsure about travelling overseas, so they're playing it safe and continuing to travel locally.

Amid lockdowns and international border closures, Australians, en mass, took to the roads to holiday around Australia. Those who already had caravans were well prepared (or found the second-hand market was exceptionally lucrative), while those who didn’t, clamoured to get them, many using the incredible equity that record property prices and low interest rates afforded them.

At any other time in history, the caravan industry would have been collectively popping champagne. However, those same factors that caused the desire to stay local made it impossible to get staff (thanks to lockdowns) and parts due to global supply chain issues.

According to the ACCC survey, these issues have caused three recurring problems - delivery delays, misrepresentation of the final product (particularly around performance, towing weight and availability of repairs) and trouble with warranty claims.

In addition to caravan buyers, caravan suppliers (primarily dealers) reported they often had difficulty having the manufacturer reimburse them for warranty repairs or disagreed on the scope of the fault. They said this made it hard for them to serve their consumers effectively without significant financial burden on their businesses.

Industry issues precede COVID

But it would be wrong to blame this entirely on the COVID pandemic and lockdowns. After all, there’s been an increase in complaints about caravans since 2017.

And delivery delays aside, a caravan that weighs more than it should, isn’t as off-road capable as expected or leaks water through the roof (three common complaints mentioned in the report) can’t be solely blamed on supply chain issues.

Stuart Lamont, CEO of the Caravan Industry Association of Australia, echoed this sentiment, agreeing that the barrier for entry to build a caravan is too low. “It always has been,” he said. “It’s a self-certification process at the moment. That’s why we as an association have lobbied for seven years to impose a type-approval system, which the Road Vehicles Standards Act provides for.

“We would absolutely argue that the barrier for manufacturing product is too low.”

To give some context, if you want to become a home builder in Western Australia, you need at least five years’ experience in the trade, to have completed a Diploma of Building and Construction (Building), among other certifications, and then be approved by a board.

To start manufacturing caravans, you just need to apply for an ABN, complete a two-day motor dealers licence course and have enough capital to fund the first one you build and sell. It’s largely why there are more than 150 brands represented in Australia.

You don’t even need a factory – Gerry Ryan, the founder of Jayco, built his first campers in a farm shed outside Melbourne.

Another niche Victorian campervan conversion business began in an alleyway in Collingwood - literally on the street. Both now run successful operations, but you can see how easily that could go wrong for the unlucky traveller investing their hard-earned into the trip of a lifetime.

Things to check before buying a caravan

So, if dreams of caravanning holidays dominate your thoughts, should you be concerned that your dream home on wheels will have major problems? There’s at least a 1 in 100 chance that it might. But Caravan World editor John Ford says are plenty of things you can do to ensure the risk is minimised.

“Read reviews, but more importantly, get feedback from a friend or someone you trust who bought from a reputable dealer or builder. A good dealer makes a big difference to the buying experience."

Buying from reputable and well known brands that have been in the industry for some time could be a safer choice.

Caravan forums are also a useful way to get more information on caravan makes and models directly from the people who own them.

It’s also essential that you understand your rights. In Australia, businesses operate under Australian Consumer Law (ACL) and consumer guarantees, which are meant to ensure that when we buy things, they are of acceptable quality.

The ACCC specifies that goods should “be safe, lasting, with no faults; look acceptable; do all the things you would normally expect them to do.”

In addition to this, they should match the salesperson’s description and any demonstration model or sample; be fit for the purpose the business told the consumer it would be fit for and any purpose that the consumer made known to the business before purchasing; meet any express warranty given or made by the manufacturer; have spare parts and repair facilities available for a reasonable time after purchase unless the consumer was told otherwise.

With regards to warranties (most of which are usually advertised as one or two years on new caravans), the ACCC explains that your rights as consumers should be longer lasting, saying, “consumer guarantees apply regardless of any warranty offered by the supplier."

In the ACCC’s view, it's reasonable to expect a caravan will not exhibit a major defect for several years (even beyond the warranty period). It also highlights that the supplier should warranty the whole vehicle and all its parts.

You should be cautious of a retailer or manufacturer who directs you to other parts or accessory manufacturers to make specific claims. Requiring the consumer to organise a repair, replacement or refund with the relevant component manufacturer is inconsistent with the requirements of the ACL, according to the ACCC. Under the ACL, the supplier is responsible for providing these remedies to the consumer.

Importantly, consumers should evaluate the ability of a caravan, campervan or camper trailer manufacturer, or the retailer, to effectively help them if something does go wrong.

Given the caravan industry has more than 150 brands, many of them very small operators, you need to ask questions about after-sales service. For example, are you confident the seller could afford to give you a full refund if there was a significant fault?

If something small goes wrong, what’s the repair process and turnaround? What about when you’re in Exmouth, but the dealer’s service centre is in Fremantle? Does the manufacturer have the infrastructure to service its advertised ‘Australia-wide warranty service’? Should this business be trusted with what could be the second-largest purchase of your life?

One thing’s for sure, the popularity of caravanning and camping isn’t diminishing and it's likely many people will continue travel close to home for some time yet. There has never been a better time to do it, just make sure you have a sound vehicle to do it in.