Motor Car Traders Act 1986

This section applies if a motor car trader sells a used motor car to a person and the car—

was manufactured not more than 10 years before the date it is sold; and

has been driven for less than 160 000 kilometres.

The warranty set out in subsection (2A) is a part of the sale contract.

The motor car trader warrants that if a defect appears in the motor car before the end of the warranty period, the motor car trader at her, his or its own expense—

will arrange for the car to be taken to a place where it can be repaired or made good; and

will repair or make good, or cause to be repaired or made good by another motor car trader or by a qualified repairer, the defect so as to place the car in a reasonable condition having regard to its age.

The warranty period is whichever of the following periods is the shorter—

the period from when the car is delivered to the person buying it until it has been driven for a further 5000 kilometres; or

the period of 3 months from the day after the car is delivered to the person buying it.

A motor car trader who offers or displays for sale a used motor car to which this section will not apply if the car is sold must ensure that there is attached to the car a notice in the form required by the regulations stating that the car is sold without any obligation under this Act to repair or make good any defects that the car may have.

For the purposes of calculating the period referred to in subsection (2B)(b), no regard is paid to any period during which the motor car trader has the motor car in possession for the purpose or purported purpose of ascertaining or carrying out the obligations under this section.

The warranty imposed by this section does not apply to or in relation to any defect—

excluded from the operation of this section by section 55; or

arising from or incidental to any accidental damage to the motor car that occurred after the taking of delivery; or

arising from misuse or negligence on the part of a driver of the motor car that occurred after the taking of delivery; or

occurring in the tyres, battery or any prescribed accessory of the motor car; or

This section does not apply to or in relation to—

the sale of any commercial vehicle; or

the sale of a motor car to another motor car trader or to a special trader;

the sale of a motor car to any person who has had the motor car in possession or under control for a continuous period of not less than three months immediately before the sale; or

the sale of a motor cycle within the meaning of the Road Safety Act 1986; or

the sale of a motor car to an employee of the motor car trader or, if the motor car trader is a body corporate, of a related company of the motor car trader.

If a licensed motor car trader acts on behalf of another motor car trader in the selling of a used motor car, this section does not apply to the motor car trader on whose behalf the used motor car is sold.

This section does not apply to a motor car that is sold by auction at a public auction by a person acting on behalf of the owner of the car.

For the purposes of this section, the date of manufacture of a motor car is—

if the car has affixed to it a metal plate, or has stamped on one of its metal components, "Built" or "Built Date" together with a date, that date; or

in any other case, the date stamped on the car's compliance plate.

If a date referred to in subsection (8) only refers to a month in a particular year, the date of manufacture is to be taken to be the first day of the next month.

For the purposes of this section and section 55, a motor car has a defect if one or more of its components—

is no longer in proper working condition having regard to its likely age or the number of kilometres it has travelled; or

is defective to the extent that the car is unroadworthy or is not able to be driven.

This section as amended by section 31 of the Motor Car Traders (Amendment) Act 1996 does not apply to any motor car sold before the day that section came into operation.