carassessments.com.au Book a demo

Statutory warranty in the ACT: the dealer’s duty to repair

Yes. The ACT’s Sale of Motor Vehicles Act 1977 makes a dealer repair defects in a second-hand car made not more than 10 years before the sale and driven not more than 160,000 km, for 3 months or 5,000 km, whichever comes first. Access Canberra also points buyers to their Australian Consumer Law rights, which apply on top.

Written by
TradeBeat, a licensed QLD motor dealer
Last reviewed
Applies to
Australian Capital Territory
The short version
  • Made 10 years or less before the sale and 160,000 km or less: 3 months or 5,000 km.
  • The duty is to repair or make good defects so the car is in reasonable condition for its age.
  • Commercial vehicles, dismantled vehicles and cars the buyer already had for 3 months are excluded.
  • The duty is a term of the contract. ACL guarantees apply on top.

Classes and thresholds

Section 23 of the Act requires the dealer to repair or make good, at the dealer’s cost, any defect that appears within the limit, whether or not it existed at the sale, so the car is in reasonable condition for its age. The obligation is taken to be a term of the contract of sale.

Car at saleDealer warranty (whichever comes first)
Made not more than 10 years before the sale and driven not more than 160,000 km3 months or 5,000 km
Over 10 years and over 160,000 kmNone (ACL still applies)
Over one limit onlyCheck with Access Canberra

ACT material is not consistent on a car that exceeds only one of the two limits: legal guides say both limits must be met, while reporting of a 2019 Assembly motion described the warranty as covering cars under 10 years old or under 160,000 km. If a car is over one limit only, confirm with Access Canberra before selling it without a warranty. The same reporting said second-hand motorcycles get no ACT statutory warranty; check that with Access Canberra too.

Test a car with the statutory warranty checker, and see the ACT dealer licence guide for who must be licensed. The national comparison covers every other state.

What’s excluded

  • A second-hand car the buyer had possessed for at least 3 months before the sale.
  • Commercial vehicles.
  • Substantially demolished or dismantled vehicles.
  • Superficial paint or upholstery damage that would have been apparent on a reasonable inspection.

What the dealer must do

  • Attach the required notice to every second-hand car you offer for sale (section 20).
  • Repair covered defects at your cost. Approved forms under the Act cover a notice of required repairs (section 24) and loss of the right to terminate (section 25B).
  • If you want to exclude known defects, list them on the approved defect notice before the sale. If repairing a listed defect costs more than your estimate, the buyer can recover the difference. Check the current form with Access Canberra.

Consignment and trade sales

The pages we checked don’t say how the warranty applies to cars sold on consignment or to another dealer. Check with Access Canberra.

Penalties

At the current republication (R46, in force from 5 January 2026) a penalty unit under the Act is worth $160 for an individual and $810 for a corporation. Check the Act for the number of units for each offence.

Worked examples

These sample cars are sold to a consumer. Figures are samples, not real stock.

Sample car (consumer buyer)AgeOdometerPriceResult
Sample: 2021 hatch5 years90,000 km$15,000Statutory warranty: 3 months or 5,000 km, whichever comes first
Sample: 2019 SUV7 years140,000 km$22,000Statutory warranty: 3 months or 5,000 km, whichever comes first
Sample: 2015 ute11 years175,000 km$14,000No statutory warranty
Sample: 2012 sedan14 years210,000 km$5,500No statutory warranty
Sample: 2011 wagon15 years190,000 km$2,800No statutory warranty

How it works with the Australian Consumer Law in the ACT

The Australian Consumer Law (ACL) consumer guarantees apply to every used car a dealer sells to a consumer, on top of any state warranty. They cover goods under $100,000 (including GST), and vehicles used mainly to carry goods whatever the price. The car must be of acceptable quality, judged on its age, price and condition, and must match its description.

The guarantees have no fixed time limit and you can’t contract out of them. A state warranty that has expired, or never applied, doesn’t end them. Private sales sit outside most of the guarantees, though private sellers still guarantee clear title, undisturbed possession and no undisclosed securities.

If you also give a voluntary or extended warranty, the ACL treats it as a warranty against defects. The document must carry the mandatory text that starts “Our goods come with guarantees that cannot be excluded under the Australian Consumer Law”, and it adds to the guarantees rather than replacing them.

Questions dealers ask

Does the ACT have a statutory warranty on used cars?

Yes. Under the Sale of Motor Vehicles Act 1977, dealers must repair defects in second-hand cars within 10 years and 160,000 km for 3 months or 5,000 km.

What if the car is over 10 years old in the ACT?

Over 10 years and 160,000 km, there’s no dealer warranty. If only one limit is exceeded, check with Access Canberra. ACL guarantees apply either way.

What does an ACT dealer have to do under the warranty?

Repair or make good covered defects at the dealer’s cost so the car is in reasonable condition for its age. ACL remedies, including a refund for a major failure, are separate.

Are commercial vehicles covered in the ACT?

No. Commercial vehicles are excluded from the dealer warranty.

Sources

Rules and fees change. Check the official source before you rely on anything here; this guide is general information, not legal advice.

  1. Sale of Motor Vehicles Act 1977 (ACT)
  2. Access Canberra: Buying an ACT registered vehicle
  3. Access Canberra: Fair trading and consumer rights
  4. ACCC: Consumer rights and guarantees
  5. ACCC: Warranties against defects

Stop doing this in a spreadsheet.

The app works this out on every car automatically, from appraisal to settlement. Leave your email and we’ll show you on one of yours.

More free calculators and templates, or see pricing.