Warranty
Statutory Warranty
What is the Statutory Warranty?
  • States that vehicle is free from defects at time of sale
  • Defects reported during the warranty period will be repaired free of charge
  • Does not apply to accident damage, results of negligence, tyres, lights, batteries, radiator hoses

"Class A" - 3 month/5000km for cars with less than 160,000 km and are less than 10 years old
"Class B" - 1 month/1000km for cars over 160,000 km or older than 10 years

Age = date of manufacture
What is the meaning of "Defect"?

  • A part of the vehicle does not peform its intended function
  • Has deteriorated to an extent where it cannot reasonably be relied upon to perform its intended function

What defects are not covered under the Statutory Warranty?
Aaccording to the PAMD Act & Regulations:

  • tyres, batteries, lights, radiator hose;
  • a defect in the vehicle’s paintwork or upholstery that should have been apparent on any reasonable inspection of the vehicle before the buyer took delivery;
  • a defect after the buyer takes delivery— (i) arising from or incidental to any accidental damage to the vehicle; or (ii) arising from the buyer’s misuse or negligence; or (iii) in an accessory to the vehicle not fitted to the vehicle when sold to the buyer;
  • a defect in the vehicle's fitted airbag;
  • a defect in the vehicle's installed radio, tape recorder, or CD player;
  • for a Class B warranted vehicle, a defect in the vehicle's air conditioning system.

Other Details

  • Warranty to be extended for each day the vehicle is being repaired under warranty
  • Applies to motor dealers as owners or on consignment for other dealers or auctioneers
  • Consignment (private) vehicles to be identified as not subject to warranty

Can customers contract out of a statutory warranty with a dealer?
No. The statutory warranty is mandatory.

What vehicles are excluded from statutory warranties?
Commercial vehicles, motor cycles, caravans, consignment vehicles and vehicles being sold for the express purpose of wrecking or dismantling.

What are commercial vehicles?
Commercial vehicles are described in the dictionary that can be found in the third schedule of the Property Agents and Motor Dealers Act 2000. "Commercial vehicle" means a motor vehicle-( a) built mainly for carrying or hauling goods; or (b) designed to carry more than 9 persons. A utility with a nominal load carrying capacity of 1 tonne or less is not a commercial vehicle.

Do vehicles sold for restoration require a statutory warranty?
Yes. Only those for vehicles sold for wrecking and dismantling are not required to be given a statutory warranty.

If a vehicle is sold for wrecking purposes only, does the dealer give a statutory warranty?
No. Caution is required when selling a vehicle for wrecking or dismantling. The motor dealer should get the buyer to sign documentation confirming that the intention is to sell the vehicle for wrecking or dismantling. The dealer should be careful about making statements about work needed to repair the vehicle as this could be seen as a representation of the vehicle being sold for restoration which could therefore be covered by statutory warranty.

If a buyer purchases a car for wrecking, but then proceeds to repair the vehicle so that it can be registered, is the dealer required to give or honour a statutory warranty on that vehicle?
No. The vehicle was purchased for the purpose of wrecking and does not have a statutory warranty attached to it.

If a vehicle still has two months of a new vehicle warranty remaining , does the motor dealer have to give the buyer a statutory warranty?
Yes. The statutory warranty must still be given as it is an obligation on the motor dealer. However, the dealer and the buyer may seek to have the repairs undertaken by the manufacturer.

If a buyer claims the vehicle has an oil leak during the warranty period, can the dealer take it to Queensland Transport to confirm the leak? Would it end there?
No. This may be a safety certificate issue, but if the seal has failed to perform as intended it could be a defect requiring repairs under the statutory warranty. Alternatively, the buyer can take the matter to the Small Claims Tribunal.

If a buyer has a dispute with the motor dealer that can't be resolved between the two parties and the buyer then takes the matter to the Small Claims Tribunal, how long will the matter take to be resolved?
Approximately six weeks, depending on the caseload of the Small Claims Tribunal.

Does the statutory warranty period extend for the period of any claims against the warranty?
Yes, the Act states that the warranty extends for the time the vehicle is in for repair. This is to prevent the motor dealer holding the vehicle until the warranty expires.

Can a dealer insure the statutory warranty?
No. The statutory warranty is the responsibility of the motor dealer and they must deal directly with their customers. However, the motor dealer may get an insurer to underwrite the warranty. Ultimately, the motor dealer is responsible for the statutory warranty.