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Statutory warranty in the NT: limits and the Form 12 waiver

Yes. In the Northern Territory a used car from a licensed dealer that is not more than 10 years old and has travelled not more than 160,000 km has a statutory warranty of 3 months or 5,000 km, whichever comes first. Unlike other states, the buyer can give it up, but only by signing a Form 12 waiver in front of a Consumer Affairs officer or a police officer.

Written by
TradeBeat, a licensed QLD motor dealer
Last reviewed
Applies to
Northern Territory
The short version
  • 10 years or less and 160,000 km or less: 3 months or 5,000 km, whichever comes first.
  • Motorcycles up to 5 years and 30,000 km are also covered.
  • A buyer can waive it only on a witnessed Form 12. ACL guarantees can’t be waived.
  • Commercial vehicles, trade sales and licensed auction sales are excluded.

Classes and thresholds

The warranty sits in Part 10 of the Consumer Affairs and Fair Trading Act 1990. The repair must bring the car to a reasonable condition for its age and distance travelled.

Vehicle at saleStatutory warranty (whichever comes first)
Car 10 years or less and 160,000 km or less3 months or 5,000 km
Motorcycle 5 years or less and 30,000 km or lessCovered (check the period with NT Consumer Affairs)
Over both limitsNone (ACL still applies)
Over one limit onlyCheck with NT Consumer Affairs

The NT Government page says the warranty doesn’t apply if the car is more than 10 years old or has travelled more than 160,000 km, while an NT Consumer Affairs guide words the exclusion as more than 10 years old and more than 160,000 km. If a car is over one limit only, confirm with NT Consumer Affairs before selling it without a warranty.

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

What’s excluded

  • Defects caused by misuse or negligence, or by accidental or malicious damage while the car was with the buyer.
  • Commercial vehicles: those built or adapted to carry goods, ten or more people, or for commercial or agricultural use. Utes, wagons, panel vans, camper vans and 4WDs count as commercial only if the buyer confirms in writing they will be used mainly for business.
  • Sales to a trade owner, cars sold at auction by a licensed auctioneer, and cars the buyer had held for at least 3 months before the sale.
  • Cars still under an unexpired manufacturer’s warranty, according to an NT Consumer Affairs guide.

The exclusions in the last two points come from the Act as summarised in the NT Law Handbook; confirm them with NT Consumer Affairs.

What the dealer must do

  • Use the NT information and contract form for a second-hand vehicle. It asks whether a “notice to purchaser: sale excluding statutory warranties” has been completed and, if not, sets out the warranty conditions.
  • If the buyer chooses to waive the warranty, the warning on Form 12 must be read to them by an officer authorised by the Commissioner or a police officer witnessing the contract.
  • Repair covered defects at your cost.

There is no cooling-off period for car purchases in the NT, and a dealer can’t keep more than 10% of the price as a deposit.

Penalties

The official pages we checked don’t set out warranty penalty amounts. Check the current Act or ask NT Consumer Affairs.

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 NT

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 NT have a used car statutory warranty?

Yes. Cars 10 years old or less with 160,000 km or less from a licensed dealer get 3 months or 5,000 km.

Can a buyer waive the warranty in the NT?

Yes, but only by signing Form 12 with the warning read to them by a Consumer Affairs officer or police officer. The ACL guarantees still apply.

Is there a cooling-off period for cars in the NT?

No. There is no cooling-off period for vehicle purchases in the Northern Territory.

Are utes covered by the NT warranty?

Yes, unless the buyer confirms in writing that the ute will be used mainly for commercial purposes.

Sources

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

  1. NT Government: Buying a used vehicle
  2. NT Government: Warranties
  3. NT Consumer Affairs: Motor vehicle service and repairs
  4. Consumer Affairs and Fair Trading Act 1990 (NT)
  5. NT Government: Information and contract for the sale of a second-hand vehicle
  6. ACCC: Consumer rights and guarantees
  7. ACCC: Warranties against defects

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