A man has lost his bid to get a refund on a used vehicle that broke down the day after he bought it at auction in Altona North.

Huseyin Mindemir bought a 2006 Volkswagen van for $7100 at an auction conducted by Manheim Pty Ltd in January this year.

The Victorian Civil and Administrative Tribunal (VCAT) heard Mr Mindemir picked up the van the following day, but soon after driving off the vehicle started “bubbling”. A mechanic’s report indicated the van needed a new transmission that would cost $5500.

VCAT member Reynah Tang said limited warranties against defects provided by car traders did not apply to vehicles sold at public auctions.

He said there were also exclusions for cars more than 10 years old or that had been driven for a distance of 160,000 kilometres or more.

He said vehicles sold at public auctions were excluded from the normal cooling off period.

The tribunal heard Manheim had given the van a “U vehicle grade”, which meant it had not had a mechanical inspection.

“Having regard to the evidence presented, I find that Manheim did not engage in misleading or deceptive conduct,” Mr Tang said.

“There was no evidence that Manheim was aware of the defects with the van.

“There was evidence that Manheim had taken steps to alert potential buyers to the fact that they had not undertaken their own inspection of the van.”

He said Manheim was selling the van as an agent and had not been made aware of any defects.