FAQ
Statutory Warranties
What is the warranty on the purchase of a used vehicle?
As at 1 July 2001, Statutory warranties apply to used cars bought from a licensed dealer. You will not receive a statutory warranty for a motor cycle, caravan, commercial vehicle, vehicle sold for wrecking or vehicle being sold on consignment by a dealer or auctioneer for a private seller.
Class 'A' Warranty
A three-month or 5,000km warranty (whichever happens first) covers a used car with an odometer reading of less than 160,000km and manufactured less than 10 years before the sale date.
Class 'B' Warranty
A one-month or 1,000km warranty, (whichever happens first) covers a used car with an odometer reading of more than 160,000km or manufactured more than 10 years before the sale date.
The statutory warranty guarantees that:
-
The car is free from defects at the time of sale for the warranty period, and
-
Defects in the car reported during the warranty period be repaired free of charge.
Some defects are not covered such as tyres, batteries, lights, radiator hoses, radios, tape decks, CD players, air bags or obvious defects in the paintwork or upholstery. Problems caused by buyer's misuse or neglect will not be covered by the warranty.
You should check to see whether the vehicle you are interested in has a statutory warranty. There should be a sign stating 'no statutory warranty' clearly displayed either near the price or on the windscreen of any vehicle that does not have a statutory warranty.
No sign, however, will appear on a vehicle which does not have a warranty and that is being sold by a motor dealer or auctioneer who only sells vehicles without warranties such as motorcycles. In this case, you can expect to see a sign in a prominent position at the main entrance of the dealer's yard stating that none of the vehicles have a statutory warranty.
Unresolved disputes between a buyer and a dealer about the warranty for a car can be taken to the Small Claims Tribunal for a binding decision.
Cooling off Periods
Is there a cooling off period in Queensland after the signing of a contract to purchase a vehicle?
As of 1 July 2001, a one business day cooling-off period applies to used cars bought from a licensed dealer. This gives you until 5pm on the next day the dealership is open to cancel the contract if you decide you no longer want the car.
When you sign the contract for the vehicle, you must pay a small non-refundable deposit of up to $100.
During the cooling-off period, you have the right to take the car off the premises for a test drive or an independent mechanical inspection. However, you cannot take the car away from the car yard for any other reason. Legally, once you take possession of the car, you will lose your cooling-off period and therefore have to go through with the purchase.
If you choose not to purchase the used car during the cooling-off period and want to get out of the contract, you must:
-
Clearly state in writing that you do not want to buy the vehicle, and
-
Give the letter to the dealer or salesperson before the end of the cooling-off period.
You will lose your deposit of up to $100, however all agreements or contracts you may have signed, such as those for a loan or insurance, will also be terminated.
Holding Deposits
If I exercise my right to a cooling-off period, can I get my holding deposit back?
No - the deposit of up to $100 is non-refundable.
Safety Certificates
How do I know a vehicle is in a safe condition prior to being offered for sale?
All registered vehicles offered for sale must have a Safety Certificate displayed in a conspicuous place on the vehicle.
Must a private person display this certificate prior to offering their car for sale?
Yes - this rule applies to both motor dealer and private sales.
Vehicles Under Finance
How can I protect myself from buying a car that is still under finance?
Under the Property Agents and Motor Dealers , a licensed motor dealer MUST guarantee clear title to the vehicle purchased. Therefore, if you buy from a licenced dealer you will be safe.
If buying privately, you should ensure that you purchase a REVS Certificate (REVS - Register of Encumbered Vehicles) or VCheck for more detailed information on the history of the vehicle.