Statutory warranty in NSW: the dealer guarantee
Yes. In NSW the statutory warranty is called the dealer guarantee: a used car under 10 years old and driven under 160,000 km is covered for 3 months or 5,000 km, whichever comes first. It comes from the Motor Dealers and Repairers Act 2013, and the Australian Consumer Law guarantees apply on top.
- Cars under 10 years old with under 160,000 km: 3 months or 5,000 km, whichever comes first.
- Motorcycles under 5 years and under 30,000 km: 3 months or 3,000 km. Trailers and caravans joined the guarantee on 1 September 2026.
- You can exclude listed defects with a dealer’s notice and a current inspection report, but not safety items such as tyres or brakes.
- No guarantee once another dealer acquires the car, or at a bona fide auction with the right notice attached.
Classes and thresholds
NSW has one class for cars and no price threshold. The time limit starts when you sell the car, and time the car is with you for assessment or repair doesn’t count.
| Vehicle | Limits at sale | Dealer guarantee (whichever comes first) |
|---|---|---|
| Second-hand car | Under 10 years old and under 160,000 km | 3 months or 5,000 km |
| Second-hand motorcycle | Under 5 years old and under 30,000 km | 3 months or 3,000 km |
| Second-hand trailer or towable recreation vehicle (from 1 September 2026) | Up to 10 years old | 3 months |
| Anything older or higher km | Outside the limits above | No dealer guarantee (ACL still applies) |
These limits are as NSW guidance states them. The guidance doesn’t say how age is measured or how a car exactly 10 years old is treated, so check boundary cases with NSW Fair Trading.
Test a car with the statutory warranty checker, and see the NSW dealer licence guide for who must be licensed. The national comparison covers every other state.
What’s excluded
- Accidental or incidental damage after the sale while the car wasn’t with you, and damage from misuse, negligence, motor racing or rallying.
- Superficial paint or upholstery damage that was apparent on a reasonable inspection.
- An unregistered car that needs substantial repair at the time of sale.
- Defects listed on a compliant dealer’s notice with a current inspection report attached (see below). Items that make the car unsafe, such as tyres or brakes, can’t be excluded this way.
- Vehicles over 4.5 tonnes GVM, according to the NSW Government’s dealer guarantee page.
- Appliances in the living or sleeping area of a towable recreation vehicle. Trailers and towable recreation vehicles themselves were outside the guarantee until 31 August 2026; from 1 September 2026 the 2025 Regulation brings them in. Check the details for trailers, which have no odometer, with NSW Fair Trading.
What the dealer must do
- Repair covered defects at your cost so the car is in reasonable condition. The guarantee is enforceable by the owner as if it were a term of the contract.
- To exclude known defects on a second-hand car (not a motorcycle), attach a dealer’s notice listing them with an estimated repair cost, plus a current inspection report, when you offer the car for sale. If you underestimate a repair, the buyer can recover the difference from you as a debt.
- Don’t advertise a car covered by the guarantee if you knew, or ought to have known, of a defect the guarantee would make you fix, unless the ad states the defect. For the penalty, check the current Act and Regulation or ask NSW Fair Trading.
Auctions, consignment and trade sales
A dealer stops being liable for the dealer guarantee once the car is acquired by any motor dealer, so a trade sale carries none. A licensee isn’t liable for a car another dealer sells on its behalf. A car sold at a bona fide auction is excluded if a dealer’s notice saying the guarantee doesn’t apply is attached at the time of sale. The NSW pages we checked don’t separately address private consignment, so check with NSW Fair Trading.
Penalties
The dealer guarantee is enforced like a contract term. Penalty amounts for individual offences vary between provisions and versions of the Act and Regulation, so check the current text on the NSW legislation website or ask NSW Fair Trading.
Worked examples
These sample cars are sold to a consumer. Figures are samples, not real stock.
| Sample car (consumer buyer) | Age | Odometer | Price | Result |
|---|---|---|---|---|
| Sample: 2021 hatch | 5 years | 90,000 km | $15,000 | Dealer guarantee: 3 months or 5,000 km, whichever comes first |
| Sample: 2019 SUV | 7 years | 140,000 km | $22,000 | Dealer guarantee: 3 months or 5,000 km, whichever comes first |
| Sample: 2015 ute | 11 years | 175,000 km | $14,000 | No statutory warranty |
| Sample: 2012 sedan | 14 years | 210,000 km | $5,500 | No statutory warranty |
| Sample: 2011 wagon | 15 years | 190,000 km | $2,800 | No statutory warranty |
How it works with the Australian Consumer Law in NSW
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.