Statutory warranty in Victoria: what licensed traders must give
Yes. A licensed motor car trader in Victoria must give a statutory warranty on a used car that is under 10 years old and has travelled under 160,000 km, lasting 3 months or 5,000 km, whichever comes first. It comes from section 54 of the Motor Car Traders Act 1986, and the Australian Consumer Law guarantees apply on top.
- Under 10 years old (by the build plate date) and under 160,000 km: 3 months or 5,000 km.
- Motorcycles, commercial vehicles, cars sold at public auction and sales to another trader are excluded.
- Defects listed on a defect notice, tyres, batteries and some accessories aren’t covered.
- Your contract must say whether the car has the section 54 warranty.
Classes and thresholds
Victoria has one class and no price threshold. Age is taken from the build date on the car’s build plate, usually on the firewall.
| Car at sale | Statutory warranty (whichever comes first) |
|---|---|
| Under 10 years old and under 160,000 km | 3 months or 5,000 km |
| 10 years or older, or 160,000 km or more | None (ACL still applies) |
Victoria’s Consumer Legislation Amendment Act 2026 (assented 8 September 2026) allows warranty periods to be prescribed by regulation for classes of cars. We found no new periods announced as of October 2026, so the 3 months or 5,000 km rule above is still the one on Consumer Affairs Victoria’s pages. Check with Consumer Affairs Victoria before relying on it.
Test a car with the statutory warranty checker, and see the VIC dealer licence guide for who must be licensed. The national comparison covers every other state.
What’s excluded
- Motorcycles, commercial vehicles and cars sold at public auction.
- Sales to another motor car trader.
- A car sold to someone who had it in their possession or control for at least 3 months immediately before the sale.
- Defects listed on a defect notice you attach to the car.
- Accidental damage, misuse or negligence after delivery.
- Tyres, batteries, and accessories such as audio and video units, GPS, non-standard alarms and keyless entry.
What the trader must do
- State in every contract whether the car is covered by the section 54 warranty.
- Repair covered faults during the warranty period so the car is in reasonable condition for its age.
- Where the warranty doesn’t apply, attach a notice to the car saying it is sold without any obligation under the Act to repair or make good defects.
The warranty belongs to the buyer under your contract. If they sell the car privately inside 3 months or 5,000 km, it doesn’t pass to the new owner.
Consignment and trade sales
Section 54 doesn’t apply to a sale to another motor car trader, so a trade sale carries no statutory warranty. Confirm the current wording with Consumer Affairs Victoria. Its pages don’t say how the warranty applies to a car you sell on consignment for a private owner, so check that with Consumer Affairs Victoria before treating it as exempt.
Penalties
We couldn’t confirm the penalty for failing to repair under the warranty. Consumer Affairs Victoria’s penalties page lists the maximum court and infringement penalty for each Motor Car Traders Act offence; check it, or ask Consumer Affairs Victoria. A buyer who loses out because a trader didn’t meet the warranty can also claim against the Motor Car Traders Guarantee Fund.
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 | Statutory warranty: 3 months or 5,000 km, whichever comes first |
| Sample: 2019 SUV | 7 years | 140,000 km | $22,000 | Statutory warranty: 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 Victoria
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.