08/10/2026
KNOW YOUR RIGHTS WHEN BUYING A USED CAR FROM A DEALER IN NSW
I've recently had 2 different people come to me for advice after being told by a dealer that their vehicle wasn't covered by warranty, despite appearing to meet the eligibility requirements. Also their form 5 is filled out signed by them and the dealers employee that the vehicle does not have warranty
It is important for consumers to know their rights.
Under NSW dealer guarantee laws, a used vehicle sold by a licensed motor dealer is generally covered by a statutory warranty of 3 months or 5,000km (whichever occurs first) if, at the time of sale, the vehicle is:
✅ Less than 10 years old
✅ Has travelled less than 160,000km
This dealer guarantee is provided under NSW law and cannot simply be replaced by a dealer's own warranty product. A dealer cannot avoid their statutory obligations by directing customers solely to a separate warranty or imposing their own repair spending limit where statutory warranty obligations apply.
Also, when purchasing a used vehicle from a dealer, a current Safety Inspection Report (Pink Slip) should generally be available. For vehicles covered or not by statutory warranty, dealers must provide a roadworthiness inspection report, unless the registration was renewed or established within the previous 90 days using an applicable inspection.
Consumers should always:
• Ask whether the vehicle qualifies for statutory warranty coverage.
• Request copies of any inspection reports.
• Keep all sale documents and correspondence.
• Contact NSW Fair Trading if they believe their legal rights are not being met.
This post is not aimed at any particular dealership. It is simply intended to help local buyers understand their rights and make informed decisions when purchasing a used vehicle from a licensed motor dealer in NSW.
Knowledge is power. Before accepting "that's not covered," take the time to check your rights.
