Problems with a motor vehicle you bought from a dealer

When you buy a motor vehicle from a motor dealer or get your motor vehicle repaired, it is covered by either the manufacturer’s warranty or dealer guarantees for a specific period. These warranties are in addition to consumer guarantees under the Australian Consumer Law (ACL).

Warranties

When you buy a new motor vehicle from a licensed dealer it will usually come with a manufacturer’s warranty. This warranty covers faults or problems for a period of time.

The warranty explains:

• what is covered, and 

• what you can claim if something goes wrong. 

If you sell the car while the manufacturer warranty is still valid, the remaining warranty will usually transfer to the new owner. It will not transfer if the warranty specifically says that it won’t transfer. 

Usually, extended warranties can’t be transferred to the new owner.

For more information, see Dealer guarantees and warranties on the NSW Government website.  

Alert: If you have problems with your car after the warranty period expires, you might still be able make a claim under the ACL. You should get legal advice about your situation.

Dealer guarantees

The dealer guarantees mean that licensed motor dealers must repair or fix any defective vehicles they sell. They must not charge for this. The motor dealer must repair the vehicle so that it’s in a reasonable condition based on its age. 

The dealer guarantees only apply to a motor vehicle that is or becomes a defective vehicle before the end of the limitation period for the motor vehicle. For more information about what a defective vehicle is, see Dealer guarantees and warranties on the NSW Government website.

ALERT: If you have a complaint about a vehicle you bought from a licensed dealer, you can choose to claim under the dealer guarantee, the ACL or any other warranty the dealer may have given you for the vehicle. If you’re not sure, get legal advice.

When dealer guarantees don’t apply

Dealer guarantees don’t apply:

• to caravans, trailers or vehicles weighing over 4.5t GVM

• if the dealer’s notice said that the dealer guarantee did not apply and it was attached to the motor vehicle when you bought it 

• if the motor vehicle was not registered and needed major repairs when it was sold

• if you caused the damage after buying the motor vehicle 

• if the problem is normal wear and tear, like small scratches or worn seats of a second-hand motor vehicle

• if the dealer gave you a prescribed defect notice and inspection report, including an estimate of the repair costs 

• if you purchased a motorcycle that is over 5 years old or has travelled over 30,000km. 

Resolving your dispute with the dealer 

If you have a problem, try to resolve it directly with the dealer or the mechanic who has serviced your car.  To negotiate with the dealer or mechanic:

• contact them as soon as you notice the problem

• explain the issue clearly and ask for what you want

• use email where possible so you have a written record

• keep evidence of the issue, such as videos and photos.

If you can’t reach an agreement, you can complain to NSW Fair Trading. For more information, see Negotiating with the business and making a complaint.   

If the problem is still not resolved after taking these steps, you can apply to the NSW Civil and Administrative Tribunal (NCAT). If you are unsure whether you should apply to NCAT, get legal advice.

For more information, see Making a motor vehicle consumer claim application at the NSW Civil and Administrative Tribunal.

Last updated: June 2026