Consumer rights for new and second-hand cars
Under the Australian Consumer Law, products and services that consumers buy from a business come with automatic guarantees that they will work and do what they’re supposed to do. These are called consumer guarantee rights.
These rights apply to new and second-hand cars purchased from a licensed dealer. The basic rights covered by consumer guarantees cannot be taken away by anything a business says or does.
If a car fails to meet one or more of the consumer guarantees, consumers can ask the dealer for a remedy.
These rights include that the car must:
- be of acceptable quality
- be fit for any purpose disclosed before the sale
- match the description provided or the demonstration model
- come with title and undisturbed possession.
Learn more about products and consumer rights.
Manufacturer warranties and extended warranties
Voluntary warranties such as manufacturer warranties or extended warranties may also apply. These are in addition to the automatic rights consumers have under the law and state and territory statutory warranties. However, voluntary warranties cannot replace, change or take away consumers' automatic rights. Warranties do not alter consumer rights and guarantees.
- Manufacturer warranties are usually provided for new cars. Manufacturer warranties are usually included in the sale price of the new car. In some cases, manufacturer warranties can be transferred to a new owner if the car is resold.
- Extended warranties may also be offered by dealers. They are usually sold for an additional cost and are optional. They may or may not give any extra rights than those consumers already have under the law and state or territory statutory warranties. Before purchasing an extended warranty, consumers should understand the terms and limitations.
New car sales - specific information
Fuel consumption values
New motor vehicles are required to display fuel consumption values in a label on the front windscreen. The fuel consumption values come from testing conducted in a laboratory under an international framework. The fuel consumption values produced generally won't be achieved in actual on-road driving.
Displayed fuel consumption values should be used for comparative purposes only.
When considering fuel consumption values:
- use values to compare the fuel consumption of different car models
- don't take values to represent the actual fuel consumption of a car.
The Department of Infrastructure and Regional Development Green vehicle guide lists fuel consumption figures calculated under the international testing framework and reported by vehicle manufacturers and importers. These figures can be used for comparison between vehicles.
Dealer obligations when selling cars
Car dealer licensing is administered and regulated by state and territory agencies. Dealers should know their state and territory-based licensing responsibilities under the law.
As businesses, car dealers also have responsibilities under the Australian Consumer Law.
Dealers must be honest and truthful
You must be honest and truthful in any representations you make to consumers. You must not make misleading or deceptive claims or representations, including by omission. This may include statements about:
- the suitability of a car for a particular purpose
- the dealer’s legal responsibilities to provide a repair, replacement or refund
- the cost and coverage of extended warranties
- for second-hand cars, the history and condition of the car, which may include the kilometres travelled, service history and accident history or written-off status.
Dealers and credit providers must meet responsible lending obligations
For cars being purchased using finance, dealers and credit providers should make sufficient enquiries and verify the consumers’ financial situation to meet their responsible lending obligations as a dealer or credit provider.
Dealers should also make sure the key terms of the loan or lease are explained to the consumer and provided in writing.
Repairs, replacements and refunds for cars
If a consumer discovers a problem that fails one or more of the consumer guarantees, they may be entitled to a repair, replacement or refund.
Consumers should go back to the dealer and explain the problem. The dealer must assist and must not tell the consumer to go to the manufacturer for a remedy. We provide some steps to help consumers contact a business to fix a problem.
A manufacturer or importer must provide spare parts and repair facilities for a reasonable time after purchase. This applies even if the consumer did not purchase the car directly from the manufacturer or importer.
When consumers are not entitled to a repair, replacement or refund
Consumers are not entitled to a repair, replacement or refund if they get what they ask for but:
- change their mind
- find the car cheaper somewhere else
- decide they don't like the purchase or have no use for it.
However, if a business has a ‘change of mind’ policy, that business must follow it.
If the problem with the car was caused by the consumer misusing it, they are not entitled to a repair, replacement or refund.
If the consumer knew of or were made aware of the problem with the car before they bought it, they are not entitled to a repair, replacement or refund. They may be entitled to a repair, replacement or refund for a different problem with the car that wasn’t made clear to them before they bought it.
Choice of repairer and service
The Motor Vehicle Information Scheme makes motor vehicle service and repair information available to all Australian repairers and registered training organisations.
Consumers can choose an independent repairer to service and repair their vehicle knowing it's mandatory for car manufacturers to make service and repair information available.
Help if the problem isn’t fixed
If the problem with a new or second-hand car is not fixed after contacting the dealer, there are contacts on where to go for consumer help. This includes state and territory consumer protection agencies, legal advice centres and small claims courts and tribunals.
