What is statutory warranty on a used car?

What is statutory warranty on a used car?

Secondhand vehicles For a second hand motor vehicle the Motor Dealers and Repairers Act 2013 provides a statutory warranty of 3 months or 5,000km from the date of sale (whichever occurs first). This applies to second hand vehicles that have traveled less than 160,000 km and are less than 10 years old.

What is dealer statutory warranty?

NSW. Warranty – When you buy from a dealer, a car that’s less than 10 years old and hasn’t travelled more than 160,000km carries a three-month or 5000km statutory warranty (whichever occurs first). This also applies to demonstrator vehicles.

Does selling a car void warranty?

When a vehicle is sold or otherwise transferred, the manufacturer warranty follows the vehicle and not the owner. For example, if you purchase a two-year-old vehicle that has 20,000 miles on the odometer, the manufacturer’s warranty is still valid for another year or 16,000 miles, in most cases.

Can car dealers sell cars without warranty?

A warranty is not a legal requirement for a used car, and it’s fairly common on very cheap used cars (less than a couple of thousand pounds or so) to be sold without any warranty at all. Unlike your statutory rights, a dealer can also offer you a discount in return for waiving the warranty.

How long should a warranty be on a used car?

A used-car warranty typically lasts for three, six or 12 months, with older cars often supplied with shorter policies. Cars sold by franchised dealers are typically marketed under an ‘approved used’ scheme and are generally covered by a 12-month warranty.

How long does warranty last on a car?

about three years
Essentially, an auto warranty is a promise given by the manufacturer or dealer to cover various defects and repairs over an allotted amount of time and/or certain amount of mileage on the car. In general, a basic warranty will last about three years or 36,000 miles.

Do dealerships get paid for warranty work?

Generally, the manufacturer pays a lower labor rate to the dealer for warranty work. And, because the parts come from the manufacturer, the dealership can’t earn its usual markup on the cost of parts. The manufacturers have traditionally made it less appealing for dealers to do repairs under warranty.

Does extended warranty add value to car?

Increase Your Car’s Resale Value It’s likely that the potential buyer will feel more comfortable buying a used vehicle that comes with protection in case anything happens. An extended warranty will add value to your vehicle and will justify a higher price.

Can you get your money back from an extended warranty?

You can cancel an extended warranty at any time and you’ll get a prorated refund for the unused portion of your policy. If the warranty was included in your loan, your car payment won’t drop, but you may pay off the car sooner after the refund is deducted from your balance.

Do private sale cars have warranty?

Private sales aren’t covered by any warranty and if any problems arise, they’ll be your responsibility to repair. With a private sale, an independent inspection is even more important than if buying through a dealer. Arrange for a mechanic to inspect the car and provide you with a written report.

A used-car warranty typically lasts for three, six or 12 months, with older cars often supplied with shorter policies. Cars sold by franchised dealers are often marketed under an ‘approved used’ scheme and are generally covered by a 12-month warranty.

Is it illegal to sell a car without a spare TYRE?

While it’s a useful feature to have – no-one wants to be stranded with a flat tyre – there is no legal requirement to have a spare wheel in your vehicle. In fact, the RAC estimates that 90 per cent of new cars don’t come with a spare wheel. Most now feature either run-flat tyres, or repair foam and a compressor.

What is the statutory warranty on a car?

The statutory warranty is a legal obligation imposed on licensed motor vehicle dealers under the Motor Vehicle Dealers Act to repair certain defects in second-hand vehicles they have sold.

Are there any warranties on a car sold at auction?

Restorable vehicles sold at auction are not covered by any statutory warranty. If a restorable vehicle is sold other than at auction, you can choose to waive the statutory warranty. The following vehicles do not have a statutory warranty:

How old does a car have to be to have a warranty?

A licensed motor car trader must provide a statutory warranty if the car: is less than 10 years old, and has travelled less than 160,000 kilometres.

Who is responsible for a car’s warranty when it is sold?

If the motor dealer business has been sold: the original dealer is still responsible for your vehicle’s warranty (even if they are no longer a motor dealer) the new owner of the business is not responsible for any repairs. The law automatically gives you rights when you buy goods and services, including vehicles and trailers.