Lexi Webster
Used car buyers in South Australia are protected by the Second-hand Vehicle Dealers Act 1995 (SA) and the Second-hand Vehicle Dealers Regulations 2010 (SA). The Australian Consumer Law also applies, requiring that goods supplied by businesses to consumers are of 'acceptable quality'. In South Australia, if the car is under 15 years old and has been driven for less than 200,000 km, it is covered by a warranty. The duration of the warranty depends on the purchase price of the car. If the car costs under $3000, there is no warranty. For cars between $3001 and $6000, a two-month or 3000 km statutory warranty applies. For cars over $6000, a three-month or 5000 km statutory warranty applies. It's important to note that these warranties only apply to cars purchased from a dealership, as private sales do not include any warranty.
| Characteristics | Values |
|---|---|
| Age of the car | Under 15 years old |
| Mileage | Less than 200,000 km |
| Purchase price | $3,001 to $6,000 |
| Warranty period | Two months or 3,000 km |
| Purchase price | Over $6,000 |
| Warranty period | Three months or 5,000 km |
| Applicable to | Used cars purchased from a dealership |
| Private sales | No warranty, buyer beware |
| Dealer responsibility | Dealer not responsible for repairs due to accidental damage, normal wear and tear, or damage caused by negligence or misuse |
| Australian Consumer Law | Goods supplied by businesses to consumers must be of 'acceptable quality' and must match descriptions made by the salesperson and in promotions or advertising |
| Extended warranty | May provide additional cover but may have exclusions and special conditions |
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What You'll Learn
Used car warranty period
In South Australia, the used car warranty period depends on the age, mileage, and purchase price of the vehicle. If the car is under 15 years old and has been driven less than 200,000 km, it is typically covered under the following guidelines:
- If the purchase price is below $3,000, there is usually no warranty provided.
- For prices ranging from $3,001 to $6,000, you are entitled to a two-month or 3,000 km statutory warranty.
- For prices exceeding $6,000, you receive a warranty of three months or 5,000 km after the sale, whichever comes first.
It is important to note that these warranties only apply to used cars purchased from a dealership. Private sales in South Australia do not include any warranty, and it is solely the buyer's responsibility to ensure the vehicle's quality.
The Second-hand Vehicle Dealers Act 1995 and the Second-hand Vehicle Dealers Regulations 2010 govern the sale of second-hand vehicles in South Australia. These laws outline the obligations of dealers and the rights of purchasers. For instance, dealers are not responsible for repairing defects in accessories not originally fitted by the manufacturer or for damage caused by accidents, deliberate acts, or normal wear and tear.
Additionally, the Australian Consumer Law provides consumers with certain guarantees when purchasing a used car from a dealership or importer. These guarantees include the expectation that the vehicle will be of ''acceptable quality' and will match any descriptions provided by the salesperson or in promotions.
It is worth noting that modifications to your car that do not conform to Australian standards or manufacturer specifications may void your warranty. This includes modifications such as window tinting that is too dark or lowering the vehicle's height below the acceptable limit.
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Dealer guarantees
In South Australia, the buying and selling of second-hand vehicles are regulated by the Second-hand Vehicle Dealers Act 1995 and the Second-hand Vehicle Dealers Regulations 2010. While purchasing a used car from a private seller offers little protection for the buyer, buying from a licensed motor dealer means your purchase is covered by a warranty.
The dealer guarantee does not cover caravans and trailers, vehicles greater than 4.5t GVM, or vehicles bought at auction with a dealer's notice specifying that dealer guarantees do not apply. It also does not cover incidental or accidental damage to the vehicle after the sale when it was not in the dealer's possession, damage caused by negligence or misuse by the driver, superficial damage to the paintwork or upholstery that would have been visible upon reasonable inspection at the time of sale, or a prescribed defect notice and eSafety inspection report attached to the vehicle.
The dealer is also not responsible for repairs to defects in accessories not originally fitted by the vehicle's manufacturer or approved by the manufacturer for fitting to vehicles of that kind, unless the dealer has stated otherwise. Repairs due to damage caused by an accident or deliberate act, or normal wear and tear, are also not covered by the dealer. However, insurance may cover accidental damage.
It is important to note that the time a vehicle is with the dealer for repairs does not count towards the warranty period. The warranty period for a used car in South Australia is typically two or three months or 3000-5000km after the sale, depending on the purchase price.
An extended warranty policy can provide additional cover to the standard dealer guarantee, but it usually comes with exclusions and special conditions. It is recommended to carefully read the terms and conditions to understand what is covered.
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Exclusions and limitations
It is important to understand that the time a vehicle spends with a dealer for repairs does not count toward the warranty period. Additionally, the warranty does not cover tyres, batteries (unless they render the car unroadworthy), or defects in upholstery or paintwork that are reasonably apparent. Dealers are not obligated to repair defects in accessories not originally fitted or approved by the manufacturer. Damage caused by accidents, deliberate acts, or normal wear and tear is also excluded from the dealer's responsibility, although insurance may cover accidental damage.
Furthermore, modifications that do not conform to Australian standards or manufacturer specifications, such as excessive window tinting or lowering the car's height, can void the warranty. Using the vehicle for purposes other than private use, such as taxis or ridesharing, may also result in a denied warranty claim. Negligent or reckless behaviour, including driving unlicensed or under the influence of substances, can also void the warranty.
It is worth noting that some extended warranties may have exclusions and limitations, such as restricting coverage for specific car parts, requiring the use of nominated repairers, or setting limits on the number or value of claims. These extended warranties are usually not transferable to new owners when the car is sold. Therefore, it is crucial to carefully review the terms and conditions of any extended warranty before purchase to understand the specific exclusions and limitations.
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Private sales
In South Australia, the purchase of second-hand vehicles from private sellers offers limited protection for the buyer. Private sellers have no legal obligation to provide a warranty for the vehicle, and it is the buyer's responsibility to conduct thorough checks before purchase.
It is important to note that, in the case of private sales, the buyer assumes all risks associated with the purchase. This means that if any issues or defects arise after the sale, the buyer may not have recourse to seek repairs or compensation from the seller.
To mitigate potential issues, it is recommended that buyers of second-hand vehicles from private sellers take certain precautions. Firstly, it is essential to have the car inspected by a qualified mechanic to identify any mechanical issues or potential problems. This includes checking for substantial claims made by the seller, such as the vehicle's ability to tow a trailer, the year of manufacture, or the odometer reading.
Additionally, buyers can request documentation and service history to verify the vehicle's condition and any work that has been carried out. It is also advisable to test drive the vehicle to identify any potential issues with its performance or handling.
While these precautions can help reduce the risk of unexpected problems, it is important to understand that private sales in South Australia generally do not provide the same level of protection as purchases from licensed dealers, which are regulated by the Second-hand Vehicle Dealers Act 1995 (SA) and the Second-hand Vehicle Dealers Regulations 2010 (SA). These regulations outline specific warranty periods and coverage for used cars purchased from dealerships, offering buyers additional safeguards.
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Extended warranty
In South Australia, buying a second-hand vehicle from a private seller offers little protection for the purchaser. However, if you buy a used car from a licensed motor dealer, it will likely be covered by a warranty. This warranty is based on the consumer guarantees provided under Australian Consumer Law, and additional dealer guarantees may apply under the Motor Dealers and Repairers Act 2013.
An extended warranty provides additional cover to the standard dealer guarantee or manufacturer's warranty for new or used vehicles. Generally, you need to pay for an extended warranty, but some dealers may include it in the sale price or offer it for free. It's important to read and understand any benefits you will get before agreeing to purchase an extended warranty. Some extended warranties can come with exclusions and special conditions, and limitations that could mean you need to return to the dealer for all maintenance services.
The dealer guarantee does not include caravans and trailers and vehicles greater than 4.5t GVM. It also does not cover damage caused by an accident or deliberate act by someone, or normal wear and tear. Insurance may cover accidental damage. The time that the vehicle is with the dealer for repairs does not count in calculating the warranty period.
In South Australia, if the car was first registered more than 15 years before the sale or driven more than 200,000 kilometres, there is no duty for the dealer to repair it (aside from ensuring that it is roadworthy). The duty to repair by the dealer is also limited by time or distance driven:
- Up to $3,000 - no warranty, although the vehicle must be roadworthy
- $3,001 - $6,000 - 2 months or 3000 kilometres after the sale, whichever occurs first
- Over $6,000 - 3 months or 5000 kilometres after the sale, whichever occurs first
If you're considering an extended warranty, the ACCC recommends checking to see if it “provides value for money and benefits greater than what you automatically receive” under a statutory warranty and the Australian Consumer Law (ACL) before deciding. It's also important to be aware that extended warranties, unlike manufacturer warranties, are usually not transferable to the new owner when a car is sold later.
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Frequently asked questions
In South Australia, a used car under 15 years old with less than 200,000 km on the odometer is covered under warranty. The duration of the warranty depends on the purchase price: for prices between $3001 and $6000, the warranty lasts for two months or 3000 km; for prices over $6000, the warranty is extended to three months or 5000 km.
A used car warranty in South Australia covers mechanical defects in a vehicle. However, it does not cover tyres, batteries, or reasonably apparent defects in upholstery or paintwork. It also does not cover defects in accessories not originally fitted by the vehicle's manufacturer or produced/approved by the manufacturer for fitting.
Yes, there are certain circumstances under which a used car warranty claim may be denied. These include modifications to the car that do not conform to Australian standards or manufacturer specifications, such as window tinting that is too dark or lowering the car's height excessively. Using the car for purposes other than private use (e.g., taxi, rideshare, or rental) may also void the warranty. Additionally, failure to register the car, driving under the influence, or negligent behaviour that causes damage to the vehicle can result in a denied warranty claim.
Buying a used car from a private seller in South Australia offers limited protections for the purchaser. Private sellers have no legal obligation to repair a second-hand car or provide a warranty. Therefore, it is crucial to have the car thoroughly inspected before purchase. In contrast, licensed motor dealers are required by Australian Consumer Law to ensure that goods and services are of "acceptable quality" and match any descriptions provided.
