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
- 3 month/5000km
for cars with less than 160,000 km and are less than 10 years old
- 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 vehicles 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 buyers 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.
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