You must give a statutory warranty to customers who buy second-hand vehicles.
You must also give a statutory warranty to buyers of cars that are still covered by a new car warranty.
However, the following vehicles are exempt:
- restorable vehicles
- commercial vehicles
- vehicles being sold on consignment for a private seller
- an unregistered motor vehicle that cannot be registered in Queensland because of its design or because it is on the ´written-off vehicles´ register
- an unregistered motor vehicle intended to be used for wrecking or dismantling.
You must clearly display a sign that says ´No statutory warranty´ on the windscreen or near the price on exempt vehicles.
If your business sells only vehicles without warranties, you can have just one clearly visible sign near the main entrance that states that none of the vehicles have a statutory warranty. The sign must be at least 10 cm high.
If you advertise a vehicle without a warranty, you must clearly state this.
Statutory warranty periods
Used cars can have one of two statutory warranty periods, depending on the vehicle´s age and odometer reading:
- Class A warranty: when the odometer reading is fewer than 160 000 kilometres, and the car was manufactured fewer than 10 years before the sale date, the warranty is three months or 5000 kilometres, whichever happens first
- Class B warranty: when the odometer reading is 160 000 kilometres or more, or the car was manufactured 10 years or more before the sale date, the warranty is one month or 1000 kilometres, whichever happens first.
A defect is a part of the vehicle that does not do what it is supposed to do, or has deteriorated to the extent that the buyer cannot rely on it to work. A statutory warranty covers most defects.
However, it does not cover any defect in a vehicle's:
- tyres or tyre tubes, batteries, fitted airbags, lights or radiator hoses
- installed radio, tape recorder or CD player
- air conditioning system (for a Class B warranted vehicle)
- aerial, spark plug, wiper rubber, distributor point, oil or oil filer, heater hose, fuel or air filter
- paintwork or upholstery that should have been apparent before the buyer took delivery of the vehicle
- accessory that not fitted to the vehicle when it was sold.
Statutory warranty also does not cover any defect from accidental damage due to the buyer´s misuse or negligence.
Defect repairs during a warranty period
Motor dealer´s obligation
You must tell the buyer in writing whether you will fix the defect under the statutory warranty.
If you do not respond within five business days, the defect is automatically covered.
You must then repair the defect within 14 days unless you have an acceptable reason not to.
You must extend the statutory warranty by one day for each day the vehicle is in the workshop.
You must record the warranty extension details, including the date the buyer brought the car in and the date you return the vehicle.
Where should the buyer take the vehicle?
The buyer should return the vehicle to the dealer who sold it to them. They should also take a defect notice that explains the defect. By law the buyer must give that dealer an opportunity to fix the defects.
If you nominate another repairer to fix the defect, it must be fewer than 20 km from your business unless the buyer agrees otherwise.
If the vehicle is more than 200 km from you when you get the defect notice, the buyer should take the vehicle to the nearest qualified repairer.
However, you can choose another qualified repairer, in which case you must pay the cost of delivering the vehicle.
If the car is still covered by a new car warranty, you and the buyer may agree to get the defect fixed by the manufacturer.
If you do not repair the defect
The buyer can apply to the Queensland Civil and Administrative Tribunal, which will make a decision if the claim is under $7500. If the claim is more than $7500, the buyer can take the matter to the Magistrates Court.
When new vehicle warranty still exists
You must still give a statutory warranty to the buyer. However, you and the buyer may agree to have the manufacturer do the repairs.
Last reviewed 03/04/2012