When buying a new car it’s important to make sure you’re covered in the event of any faults or defects. While most brand new cars come with a manufacturer's warranty, used cars (and many new cars) come with what’s called statutory warranty. Statutory warranty rules and coverage vary between states and territories making it a little tricky to decipher.
Don’t worry, in this article we’ve done the legwork and broken down all the info for you.
Car statutory warranty is a no-cost warranty applied to both new and second-hand vehicles sold by licensed dealers and manufacturers.
This type of warranty is designed to protect consumers from faulty vehicles, although it’s worth noting that statutory warranty offers far less coverage than a comprehensive manufacturer’s warranty.
In Queensland there are two types of statutory warranty: new and used.
Generally speaking, a new-car statutory warranty will cover you for up to a year or 20,000km (whichever comes first). As a new car, this warranty will cover you for most faults and defects discovered on or within the car.
Used vehicles are also eligible for statutory warranty coverage. However, the level and length of coverage will vary depending on the age of the vehicle. Used car statutory warranty is split into two categories: Class A and Class B.
A 'class A' warranty is valid for 3 months or the first 5,000km, whichever comes first. A 'class A' statutory warranty applies when the vehicle:
A ‘class B’ statutory warranty expires after one month or the first 1,000km, whichever occurs first. This warranty applies when the vehicle:
Your used car statutory warranty will cover defects where:
As per the Queensland Government, a statutory warranty does not cover defects in:
Statutory warranties are also known as dealer guarantees in NSW. They cover you for the repair on any defects the vehicle has after you buy. For used vehicles, this statutory warranty or guarantee lasts for 3 months or 5,000 kms. It is only valid for cars under 10 years old with less than 160,000 kms on the clock.
|
Vehicle type |
km travelled by vehicle |
Age of vehicle |
Dealer guarantee |
|
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) |
A dealer guarantee will usually cover faults and defects associated with:
In Victoria, used cars come with a statutory warranty, provided they:
The statutory warranty lasts for three months or 5,000 kilometres after purchase, whichever comes first.
A statutory warranty does not cover defects that:
The following defects are also not covered:
NOTE: Some vehicles are exempt from statutory warranties
In WA the Motor Vehicle Dealers Act’s statutory warranty applies to cars sold for more than $4,000 through licensed dealers.
|
Age of Car purchase price $4,000 or higher |
Kilometres travelled at time of sale |
Warranty Entitlement |
|
Not more than 10 years |
Less than 150,000 |
3 months or 5,000 km (whichever happens first) |
|
Between 10 - 12 years |
150,000 - 180,000 |
1 month or 1,500 km (whichever happens first) |
|
More than 12 years |
More than 180,000 |
No warranty |
The following categories of second-hand cars are eligible for car statutory warranty.
The statutory warranty does not apply to:
Image: WA Government
In South Australia, car statutory warranty applies to vehicles priced over $3,000. However if the car was first registered more than 15 years before the sale or has more than 200,000 kilometres on the clock - warranty does not apply.
The length of warranty coverage will vary depending on the sale cost of the vehicle:
In Tasmania, car statutory warranty applies to vehicles sold by a licensed dealer or auctioneer.
The car must:
The statutory warranty does not apply to:
A statutory warranty does not cover defects:
In the Australian Capital Territory, the Sale of Motor Vehicles Act 1977 dictates that used vehicles under ten years old, and with less than 160,000 kilometres on the clock will be covered by statutory warranty.
This warranty lasts for a maximum of 3 months or 5,000 km (whichever comes first).
In the Northern Territory cars less than 10 years old with less than 160,000 kms on the clock are covered by statutory warranty.
Warranty cover runs for 3 months post sale or 5,000km (whichever comes first).
If you're purchasing a vehicle from another state or territory, you will need to update the vehicle's registration. For a comprehensive guide on interstate car registration, see our detailed guide.
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