Audi Q7 Problems

We don't have lemon laws like they do in the United States, which is unfortunate, because you seem to have copped a lemon for sure, and under the US laws your car would almost certainly be replaced. You are right in demanding it be fixed, and also right in telling Audi not to return the car until it is fixed, but I would have gone further and demanded they either replace an apparently faulty car or give you your money back. I would suggest three things you could do to achieve a resolution to your problem; first contact Audi head office in Sydney and demand to speak to the Managing Director, second contact the consumer affairs people and enlist their help, and third consult a lawyer with a view to sending Audi a letter demanding action.

Under the Australian Consumer Law introduced in January 2011, a consumer can request a refund or a replacement for persistent problems if the car doesn’t do the job it’s supposed to do.

First, this should be a warning to all new car buyers to thoroughly check their car before accepting it from the dealer. Don't be afraid to be a pain in the rear, check it against the order that you placed, and make sure that it is the car you ordered. If it isn't, or there are doubts, ask questions of the dealer and get any issues resolved then and there. If you can't satisfactorily resolve any concerns you have do not drive the car away, record your issues with the car in writing and have the dealer sign them as an acknowledgement of your discussions.

It's really unbelievable that Audi and/or the dealer didn't simply change the carpet and resolve the issue immediately. But as they didn't, the best solution for you is to accept the dealer's offer of replacing the carpet at half cost. While that's not the optimum, in the circumstances it's probably the best you can hope for.