In the first half of 2001 a new law was introduced regarding warranties. Under this law, Queensland motor dealers now have to provide a statutory warranty on every car they sell.

Used cars with odometer readings of less than 160,000km or which were manufactured less than 10 years before the sale date carry a warranty of three months or 5000km (whichever occurs first).

Used cars with odometer readings of more than 160,000km or which were manufactured more than 10 years before the sale date now carry a warranty of one month or 1000km (whichever occurs first).

The statutory warranty doesn't cover every single vehicle defect and buyers should obtain a written document from the dealer, which explains exactly what is covered by the statutory warranty.

Extended warranties

Most 'extended warranties' require a vehicle to be serviced at specified intervals. Some even require that all work carried out under the warranty is to be done at the dealership you buy the vehicle from.

Most extended warranties won't cover wear and tear or existing defects. REMEMBER: read the fine print on the warranty so you are aware of all the conditions that must be adhered to before the warranty will apply.

Before you undertake repairs that are covered by the warranty you must contact the warranty provider for authorisation, otherwise the provider might not pay up and you will be left with the bill.