Warranty obligations for dealers

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Motor industry

Warranty obligations for dealers

A statutory warranty under the Motor Vehicle Dealers Act 1973 applies to the sale of second-hand vehicles and creates a legal obligation on licensed motor vehicle dealers to repair certain defects.

The obligation requires you to carry out the repairs, or arrange for another person to carry out the repairs.

Your obligation is to:

  • make the vehicle roadworthy; and
  • ensure it is in a 'reasonable' condition having regards for its age. (This does not mean you can consider its age when assessing whether or not to fix a defect - it means you may choose to use second-hand parts to make it roadworthy.)

When a customer returns a vehicle for warranty repairs it is in your best interests to carry them out as soon as possible. The time you have the vehicle for warranty repairs is added to the warranty period.

The Commissioner for Consumer Protection can refer licensed dealers who fail to carry out their warranty obligations to the State Administrative Tribunal (SAT) for disciplinary action. The SAT has the power to disqualify or suspend dealers from holding a Motor Vehicle Dealer's Licence.

We have a useful publication about your warranty obligations: Do I have to fix it?: A guide to used car warranty for dealers.


Additional information on new vehicle and used vehicle warranties, implied warranties and merchantable quality, and extended warranties can be found on the Vehicle warranties page.

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