Dealer guarantees and warranties

When you buy a new or used vehicle from a dealership, it's important to know about the warranties and dealer guarantees that can protect you and your vehicle.

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Legislation and regulation

The content on this page is based on the Motor Dealers and Repairers Act 2013 and The Australian Consumer Law.

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Key information

Most new and used vehicles purchased from a licensed motor dealer are covered by a warranty.

Warranties are based on the consumer guarantees provided under Australian Consumer Law and additional dealer guarantees may apply under the Motor Dealers and Repairers Act 2013.

Consumer guarantees for the supply of goods

Australian Consumer Law requires that goods supplied by businesses to consumers are of 'acceptable quality,' this means goods must:

be safe and lasting
look acceptable
do all the things someone would normally expect them to do.

When working out what is 'acceptable quality' for a vehicle, what is normally expected for the type of vehicle and how much it costs, are taken into account. Goods must also:

match descriptions made by the salesperson and in promotions or advertising
match any demonstration model or sample you asked for
be fit for purpose - this will include what the seller told you it would be fit for and for any purpose that you made known to the seller before purchase
come with full title and ownership
not carry any hidden debts or extra charges
come with undisturbed possession, so no one has a right to take the goods away or prevent you from using them
meet any extra promises made about performance, condition and quality
have spare parts and repair facilities available for a reasonable time after purchase unless you were told otherwise.

Dealer guarantees

A dealer guarantee takes into account the condition of the vehicle and its age when you purchase it.

The dealer guarantee does not include caravans and trailers and vehicles greater than 4.5t GVM.

* If the new vehicle or motorcycle has travelled more than 15,000/7000 km then a reduced dealer guarantee may apply.
Vehicle type	km travelled by vehicle	Age of vehicle	Dealer guarantee
New vehicles	Less than 15,000 km at time of purchase*		12 months or 20,000 km (whichever comes first)
New motorcycles	Less than 7000 km at time of purchase*		6 months or 10,000 km (whichever comes first)
Used vehicles	Less than 160,000 km at time of purchase	Less than 10 years old	3 months or 5000 km (whichever comes first)
Used motorcycles	Less than 30,000 km at time of purchase	Less than 5 years old	3 months or 3000 km (whichever comes first)

The dealer guarantee does not apply when:

a vehicle is sold unregistered and in need of substantial repair
a used car is over 10 years old, or a used motorcycle is over 5 years old
a used car has travelled over 160,000 km, or a used motorcycle has travelled over 30,000 km
a vehicle is bought at auction with a dealer’s notice specifying that dealer guarantees do not apply
there is incidental or accidental damage to the vehicle after the sale when it was not in the possession of the dealer
damage is caused to the vehicle due to negligence or misuse by the driver
superficial damage to the paintwork or upholstery of the vehicle would have been visible on reasonable inspection at the time of sale
a prescribed defect notice and eSafety inspection report were attached to the vehicle, including an estimate of the cost to repair the vehicle.

Reduced dealer guarantees

When a motor dealer registers a vehicle for the purpose of offering test drives to customers, the vehicle must be sold with a Form 5, even if it has been driven for a short period of time. This form discloses that the vehicle has already been registered and can impact the dealer guarantees and manufacturer's warranty.

For example, if a new vehicle (non-motorcycle) is sold as a used vehicle at 10,000 km, the dealer guarantee could be reduced based on the length of time that has passed since the vehicle was initially registered. The dealer guarantee is reduced by one month for every 2000 km a vehicle has been driven before purchase. In this case, the dealer guarantee would be reduced by 5 months. This means that the vehicle would be sold with a reduced dealer guarantee of 7 months or a distance limit of 20,000 km.

The motor dealer should ensure that you are fully informed about the vehicle's history and any impact on the dealer guarantees.

Forms covering the dealer guarantee

A form 5 or form 7 sets out what (if any) dealer guarantees apply to a used vehicle. This guarantee cannot be ignored by either the dealer or the buyer.

Forms 6 and 8 will be displayed on a used vehicle that has items that are to be excluded from the dealer guarantee. It lists known defects, such as hail damage, that are excluded from the guarantee and an estimate of the cost to repair them.

Items that make the vehicle unsafe to drive (such as tyres or brakes) cannot be excluded from the dealer guarantee.

If a vehicle has a form 5, 6, 7 or 8, and has number plates attached it must also be sold with a pink slip.

Learn more about motor industry forms.

Extended warranties

An extended warranty policy provides additional cover to the standard dealer guarantee or manufacturer's warranty for new or used vehicles.

Generally, you need to pay for an extended warranty. However, some dealers may include it in the sale price or offer it free of charge as part of the deal. Make sure you read and understand any benefits you will get before agreeing to purchase an extended warranty.

Be aware that some extended warranties can come with exclusions and special conditions and limitations that could mean you need to return to the dealer for all maintenance services. Read the terms and conditions to understand what the warranty covers.

Having an extended warranty does not change any rights that you have under the Motor Dealers and Repairers Act or the Australian Consumer Law.

Learn more about warranty and repair disputes.