Dealer Says the Car Was “Sold As Is, No Warranty”? Why That’s Illegal in Australia

You bought the car from a licensed yard. The contract has “SOLD AS IS” stamped across it, or a line saying “no warranty given or implied”, or the salesman told you “it’s a wholesale car, mate, you take it as you find it”. Now the head gasket’s gone and the dealer points at the stamp.

Here’s the thing the stamp can’t change: a dealer cannot contract out of the Australian Consumer Law, and a term that tries to is void. In most states, the statutory dealer warranty can’t be excluded either. “As is” on a dealer contract is at best meaningless and at worst a misleading representation about your rights, which is itself an offence.

Your rights

Section 64 of the Australian Consumer Law makes any term that purports to exclude, restrict or modify the consumer guarantees void. Section 29(1)(m) makes it unlawful for a business to make a false or misleading representation about the existence or exclusion of a guarantee, right or remedy; the ACCC and state regulators prosecute “no refunds” and “no warranty” signs under it. So the guarantee of acceptable quality (s 54) applies to every car a dealer sells in trade or commerce, regardless of the contract. What “as is” can legitimately do is narrow what a reasonable buyer would expect: a 20-year-old car sold for $2,000 with disclosed faults is judged against that. It cannot turn a dealer sale into a private one.

Two genuine exceptions exist and dealers stretch both. First, the ACL guarantees don’t apply to a sale by auction where the auctioneer acts as agent for the owner. A dealer selling its own stock through an “auction” format is not that. Second, some state dealer warranties exclude very old or high-kilometre cars, or cars sold below a price threshold; but the ACL still applies to those cars in full.

By state

• New South Wales. Motor Dealers and Repairers Act 2013: the 3-month / 5,000 km warranty on cars under 10 years and 160,000 km cannot be excluded by contract. NSW Fair Trading, then NCAT.
• Victoria. Motor Car Traders Act 1986, s 54: 3 months / 5,000 km (under 10 years, under 160,000 km); the trader must give the prescribed warranty notice and cannot contract out. Consumer Affairs Victoria, then VCAT.
• Queensland. Motor Dealers and Chattel Auctioneers Act 2014: Class A (3 months / 5,000 km) or Class B (1 month / 1,000 km) applies by law; a dealer must display the warranty class. Office of Fair Trading, then QCAT.
• Western Australia. Motor Vehicle Dealers Act 1973: cars $4,000 and over, up to 12 years / 180,000 km, carry a warranty (3 months / 5,000 km, or 1 month / 1,500 km for older cars) that must be disclosed on the Form 5A notice. Consumer Protection WA, then the Magistrates Court.
• South Australia. Second-hand Vehicle Dealers Act 1995: the 3-month / 5,000 km warranty on eligible vehicles applies by force of the Act. CBS, then the Magistrates Court.
• Tasmania. Motor Vehicle Traders Act 2011, s 43: 3 months / 3,000 km on cars under 7 years and 120,000 km; older cars still get the full ACL. CBOS, then the Magistrates Court.
• Australian Capital Territory. Sale of Motor Vehicles Act 1977: 3 months / 5,000 km on cars under 10 years and 160,000 km. Access Canberra, then ACAT.
• Northern Territory. Consumer Affairs and Fair Trading Act 1990, Part 10: 3 months / 5,000 km on cars under 10 years and 160,000 km. NT Consumer Affairs, then NTCAT or the Local Court.

The Claim Done document asks your state first and drafts to that state’s dealer-warranty rules and tribunal, with the ACL provisions that apply everywhere.

What to do right now

1. Photograph the contract and every sign. “As is”, “no warranty”, “no refunds”: these are evidence of a s 29 misrepresentation, not a defence.
2. Check whether your car meets the state warranty thresholds. Age, kilometres and price at sale. If it does, the dealer owes you a repair under the state Act as well as the ACL.
3. Get the mechanic’s report. Independent, itemised, with an opinion on whether the fault existed at sale.
4. Send a notice that names s 64. State that the exclusion is void, cite s 54 and the state warranty, list the faults, elect your remedy (reject and refund, or repair by a date), and give 14 days.
5. Report the sign or clause to the regulator. Regulators act on “no warranty” representations, and a dealer facing a licence complaint tends to settle the underlying claim quickly.

The other lines, and what they’re worth

• “It was a trade-in / wholesale car.” Irrelevant. If a dealer sold it to you, it’s a dealer sale.
• “You had it inspected before you bought.” A pre-purchase check doesn’t waive the guarantees; it goes to what a reasonable buyer expected.
• “Sold unregistered / for parts.” Only helps the dealer if the car was genuinely sold as a non-runner and the price and paperwork reflect that.
• “You signed the contract.” You did. Section 64 says the exclusion is void anyway.
• “Take it up with the extended warranty company.” A third-party warranty sits on top of your rights against the dealer, not instead of them.

Who to complain to

Your state dealer regulator: NSW Fair Trading, Consumer Affairs Victoria, Queensland OFT, Consumer Protection WA, South Australia CBS, Tasmanian CBOS, Access Canberra, NT Consumer Affairs. The ACCC for systemic “no warranty” conduct. For the refund or repair order: NCAT, VCAT, QCAT, the Western Australia, South Australia or Tasmanian Magistrates Court, ACAT, or NTCAT / the Northern Territory Local Court.

Call the dealer’s bluff — $49

Stop reading. Start doing. Claim Done drafts a Used Car Dealer Dispute letter that voids the “as is” clause under s 64, cites the acceptable-quality guarantee and your state’s dealer warranty, itemises the faults with your mechanic’s report, states your election, and gives the dealer 14 days before you lodge with the regulator and tribunal.

Send the Dealer My Faulty Car Notice — $49 →

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