When “no fault found” ends in flames: a Hyundai owner’s story

Alicia purchased her Hyundai demonstrator vehicle in 2018 from a Hyundai dealership. She had carefully maintained the car and was the sole owner.

In June 2024, after just over 62,000 kilometres, she began noticing a low knocking sound and delays when the car changed gears. Concerned, she took the vehicle to Lakeside Hyundai for inspection.

The dealership added 2.4 litres of oil and performed a full Global Diagnostics System (GDS) check. Alicia was told nothing was wrong and that the car was running normally. The vehicle remained at the service centre for two days. However, she was not given a clear explanation of the test results or told what had been checked or repaired.

As soon as she started the car to leave the dealership, the knocking noise was still there.

A free diagnostic and a $9,700 problem

When she got home, the noise worsened. Alicia felt the free diagnostic may have been done to reassure her rather than properly investigate the issue. Still concerned, she booked a second diagnostic appointment at the earliest available date.

The second assessment revealed serious internal engine damage, including badly worn piston rings, cylinder scuffing and excessive oil consumption. The repair cost was quoted at nearly $9,700, an amount Alicia could not afford.

Discovering a wider defect

During her research, she discovered that her engine type may be part of a broader defect affecting Hyundai vehicles manufactured from 2011 onwards and linked to an ongoing class action.

Alicia contacted Hyundai Australia and was instructed to bring the vehicle in for a post-warranty assessment. However, on her way to that appointment, another motorist alerted her that her car was on fire.

She managed to pull over and escape safely, but the front of the vehicle was engulfed in flames. The car was later declared a statutory write-off.

Stranded, unsupported, and under pressure

Following the fire, it took Hyundai Australia several weeks to organise an inspection of the vehicle. Alicia repeatedly requested a copy of the inspection report but says she has not been provided with documentation confirming the inspection occurred. She received limited updates and no meaningful support.

Without a vehicle, Alicia was unable to commute to work and eventually lost her job. The situation left her financially strained and emotionally overwhelmed.

Taking action

We escalated her case to Consumer Affairs Victoria, carefully documented the engine failure and vehicle fire, and persistently followed up with Hyundai to ensure her complaint was formally reviewed. While her case is still ongoing, our involvement has reduced Alicia’s stress and ensured her safety concerns are being taken seriously through the proper channels.