Important changes came into effect on 1 September 2019.

Dealers and chattel auctioneers are now required to provide a ‘class B’ statutory warranty when a vehicle has clocked up 160,000km or more, or has a built date of more than 10 years before the day of its sale.

The warranty expires after one month or 1,000km, whichever comes first.

Licensed motor dealers and chattel auctioneers were advised of the changes via email and letter in August, however, if you are part of those industry groups and are not aware of your new obligations, it’s very important you read on.

The approved form, Form 12 – Cooling-off period and statutory warranty (motor dealer or chattel auctioneer to buyer) has been updated and is available on the Office of Fair Trading’s (OFT) motor industry forms and fees page.

The new statutory warranty laws only apply to vehicles sold on or after 1 September 2019.

There are exceptions to the types of vehicles and defects covered by the ‘class B’ statutory warranty, so I recommend you visit www.qld.gov.au/fairtrading for further information on how the changes affect motor dealers and chattel auctioneers.

The OFT has been raising awareness of these changes with the Queensland public, advising used car buyers of the added protections that are automatically applied when they buy from a licensed seller, rather than via a private sale.

We know that the vast majority of those that operate in the used car business are doing the right thing, and it’s pleasing that these new measures will increase consumer confidence in the industry.

Another related change that came into effect on 1 September was the raising of the Queensland Civil and Administrative Tribunal’s jurisdictional limit from $25,000 to $100,000 for motor vehicle matters. This includes both old and new cars, motorhomes and caravans. More information on this change is available at www.qcat.qld.gov.au.

Source: OFT article – changes to motor vehicle sales laws

12 Sept 2019