Used Car Warranties

Secondhand vehicles

For a second hand motor vehicle the Motor Dealers and Repairers Act 2013 provides a statutory warranty of 3 months or 5,000km from the date of sale (whichever occurs first). This applies to second hand vehicles that have traveled less than 160,000 km and are less than 10 years old. 

If warranty repairs are required on a vehicle and it is undriveable, it is the dealer's responsibility to get the vehicle back to the dealership for repairs or authorise repairs in the remote location. Of course the dealer would have no responsibility if the vehicle was abused.

Second-hand vehicles that do not have a statutory warranty (i.e.  have travelled more the 160,000 kilometres or are more than 10 years old) must be roadworthy at the time of sale. The dealer is obliged to give consumers a Form 5 which states there is no warranty under the Motor Dealers and Repairers Act 2013 and must also provide a Safety Inspection Report issued in accordance with the Traffic Act 1909 stating that the vehicle is roadworthy. This Report must not be issued more than 42 days before the date of sale unless if the vehicles registration has been renewed or established within 90 days prior to the date of sale, the inspection report relied on for this renewal or establishment is sufficient.

The Australian Consumer Law (ACL) requires that goods sold are of a merchantable quality and purchasers of non-warrantable vehicles are protected by implied conditions that apply to all consumer contracts. These are:

• Goods must be of merchantable quality 
• Goods must be fit for the purpose supplied

Where consumers feel that a vehicle was not roadworthy at the time of sale, they should obtain an independent mechanical report to support this claim.
See report.

Further information regarding purchase of a new or second hand vehicle is available from NSW Fair Trading


 

Reference:

Fair Trading (2018).Vehicle warranty and repair disputes. Retrieved from 

https://www.fairtrading.nsw.gov.au/cars-and-other-vehicles/repairs-and-maintenance/vehicle-warranty-and-repair-disputes

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