If you bought a used car from a licensed dealer and it has problems, the Australian Consumer Law gives you consumer guarantees that the dealer cannot contract out of, and every state and territory adds a short statutory warranty for cars within its age, kilometre or price limits. If the fault is a major failure, you choose between a refund, a replacement or compensation; if it is minor, the dealer can choose to repair it, but must do so within a reasonable time. Put the faults and the remedy you want in writing, and go to your state’s consumer protection agency and tribunal if the dealer will not move.
What the law says when a dealer sells you a faulty used car
A licensed dealer selling a car to a consumer is bound by the consumer guarantees in the Australian Consumer Law (ACL), which is Schedule 2 to the Competition and Consumer Act 2010 (Cth). The ones that matter most for a faulty used car are:
- Acceptable quality (s 54). The car must be safe, durable, free from defects, acceptable in appearance and finish, and fit for the things cars are normally used for.
- Fit for any disclosed purpose (s 55). If you told the dealer you needed it to tow a caravan, for example, it has to be able to do that.
- Matches its description (s 56). The advertisement, the listing and what the salesperson said all count.
A used car is not expected to perform like a new one. The national motor vehicle guide to the ACL, developed by the ACCC and the state and territory regulators, says the test takes account of the nature of the vehicle, its price and what the dealer said about it. Normal wear and tear is not a failure, but a car that deteriorates faster than you would reasonably expect can fail the test. You are not expected to find hidden engine, brake or gearbox faults on inspection.
Private sales and true auctions are different: the guide explains they carry only the consumer guarantees about title, undisturbed possession and undisclosed securities.
Major or minor failure: who chooses the remedy
The ACL sets out what you can do when a consumer guarantee is not met (s 259), defines a major failure (s 260) and explains what happens when you reject goods (s 263). In plain terms, according to the Queensland Office of Fair Trading and the national guide:
| Type of failure | What it looks like | Who chooses the remedy |
|---|---|---|
| Major | A reasonable buyer who knew about the problem would not have bought the car; it is unsafe; it is substantially unfit for its normal purpose, or a purpose you told the dealer about, and cannot easily be fixed within a reasonable time; or it is very different from its description | You do: refund, replacement, or keep the car and be compensated for the drop in value |
| Minor | A fault that can be fixed within a reasonable time | The dealer chooses repair, replacement or refund. If a repair is not done within a reasonable time, you can treat it as a major failure, or have it repaired elsewhere and recover the reasonable cost |
Two limits matter. You lose the right to reject the car once the “rejection period” has passed (s 262), which depends on the type of car, how it is used and how long a problem would reasonably take to appear; the national guide notes a statutory warranty can end before it does. And you must give the dealer a reasonable chance to fix a fault before going elsewhere, unless it refuses or takes too long. A written refund or repair demand to the dealer records the faults and your choice.
If you were told something that turned out to be false, such as “one owner”, “no accidents” or “full service history”, the ACL also prohibits misleading or deceptive conduct (s 18) and false or misleading representations about goods (s 29).
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Used car statutory warranties by state
On top of the ACL, every state and territory makes licensed dealers repair defects in eligible used cars for a set period, at no cost to you. These warranties do not replace your ACL rights. Each period below ends at whichever limit comes first.
| State | Car is covered if | Warranty period |
|---|---|---|
| NSW | Under 10 years old and under 160,000 km at purchase | 3 months or 5,000 km (NSW Government) |
| Victoria | Under 10 years old and under 160,000 km; not sold at public auction | 3 months or 5,000 km (Consumer Affairs Victoria) |
| Queensland | Class A: under 160,000 km and built no more than 10 years before sale. Class B: older or higher-kilometre cars | Class A: 3 months or 5,000 km. Class B: 1 month or 1,000 km (Queensland Government) |
| Western Australia | Price $4,000 or more, and either up to 10 years and 150,000 km, or over 10 and up to 12 years or 150,000 to 180,000 km | 3 months or 5,000 km for the first group; 1 month or 1,500 km for the second; no warranty over 12 years or 180,000 km (Consumer Protection WA) |
| South Australia | Price over $3,000; no duty to repair (beyond roadworthiness) if first registered more than 15 years before sale or driven more than 200,000 km | $3,001 to $6,000: 2 months or 3,000 km. Over $6,000: 3 months or 5,000 km (SA Law Handbook, CBS) |
| Tasmania | Under 120,000 km and compliance plate fitted less than 7 years before sale (s 42) | 3 months or 3,000 km from delivery (s 44, Motor Vehicle Traders Act 2011) |
| ACT | Not more than 160,000 km and made not more than 10 years before sale | 3 months or 5,000 km after sale (s 23 and sch 1, Sale of Motor Vehicles Act 1977) |
| Northern Territory | Under 10 years old and under 160,000 km | 3 months or 5,000 km (NT Government) |
The details differ. In Queensland you must give the dealer written notice of a defect that appears within the warranty period; the dealer has 5 days to respond and, once it accepts the claim, 14 days to fix the car. In Tasmania the repair claim must be made within 7 days of first discovering the defect, unless your written warranty allows longer (s 46). In Victoria, arranging repairs before contacting the dealer may void the warranty. In the Northern Territory the warranty can only be signed away on a specific form that must be witnessed and read out to you. Since 1 September 2025, South Australia’s duty to repair also covers the main propulsion battery of hybrid and electric vehicles.
“Sold as is”: what the law says about as-is car sales
A dealer cannot remove your consumer guarantees with a sign, a stamp on the contract or a “no warranty” clause. The ACL says the consumer guarantees cannot be excluded by contract (s 64), and Queensland’s Office of Fair Trading says a dealer cannot make you sign them away.
What a dealer can do is tell you about a specific defect before you buy. If the dealer pointed out a defect before you agreed to buy, you cannot later rely on that defect to say the car is not of acceptable quality, and in some states a listed defect is excluded from the statutory warranty. A car that falls outside the statutory warranty because of its age or kilometres still carries the ACL consumer guarantees. For more on this, see why a dealer’s “sold as is, no warranty” is not the end of it.
What to do this week
- Stop driving if the fault affects safety, and note when each problem first appeared and the odometer reading at the time.
- Get an independent mechanic’s report on each fault and the repair cost.
- Collect your paperwork: contract, advertisement, defect notice, warranty form and messages.
- Notify the dealer in writing, inside any statutory warranty period, and give them a reasonable chance to inspect and repair.
- Send a formal demand that lists the faults, cites the ACL and your statutory warranty, states the remedy you want and sets a deadline.
- Escalate to your state regulator and then the tribunal or court if the deadline passes.
If you want that demand drafted for you, the used car dealer refund or repair letter is built for exactly this situation. For a car with repeated or serious faults, our guide to demanding a refund for a lemon goes further into rejecting the car.
Regulators, tribunals and where to lodge a claim
Every state and territory has a consumer protection agency that deals with dealers; the national guide lists them.
- NSW: NSW Fair Trading offers a free dispute resolution service for issues with licensed motor dealers. If that fails, NCAT can make binding orders up to $100,000 (unlimited for a new vehicle). Apply to NCAT within 3 years of when the problem began.
- Victoria: VCAT’s Civil Claims List hears faulty goods disputes. To cancel the sale of a car bought for under $40,000 under the Motor Car Traders Act, apply within 3 months of purchase. If a licensed trader will not repair a statutory warranty fault, you can claim compensation from the Victorian trader fund; there is no fee and the maximum award is $40,000.
- Queensland: QCAT hears motor vehicle disputes against licensed dealers up to $100,000, including a failure to repair a statutory warranty defect after written notice. It does not hear private sales.
- Other states and territories: contact Consumer Protection WA, Consumer and Business Services SA, Consumer Affairs Tasmania (CBOS transitioned to it from 1 October 2026), Access Canberra or NT Consumer Affairs, and ask which court or tribunal handles a claim of your size.
For a wider view of refund rights, see your consumer rights if you bought a lemon and how to demand a refund in Australia.
Frequently asked questions
Can I return a used car to a dealer if it has problems?
Yes, if the problem is a major failure and you are still within the rejection period: you can reject the car and choose a refund or replacement. For a minor failure the dealer can repair it first, but if that is not done within a reasonable time you can treat it as a major failure and ask for a refund or replacement.
Are “as is” car sales legal in Australia?
A dealer can label a car “as is”, but the label does not remove the consumer guarantees (ACL s 64). Defects disclosed to you before the sale are treated differently, and private sales and true auctions carry far fewer rights.
What if the statutory warranty has run out?
You may still have ACL rights. Consumer Affairs Victoria and the national guide say the level of protection then depends on the car’s age and condition.
Do I have to let the dealer repair it before going elsewhere?
Generally yes. If the dealer refuses or fails to repair the car within a reasonable time, you can have the work done elsewhere and seek the reasonable cost from the dealer.
Claim Done prepares your demand to the dealer for a refund or repair from your answers for $49. It is not legal advice and Claim Done does not represent you. You review and approve the letter, then Claim Done sends it to the dealer.
What happens when you put it in writing — properly
Same problem. What a prepared case looks like.