Office of Fair Trading Issues Reminder on Unwarranted Used Vehicle

The Office of Fair Trading is reminding motor dealers of their obligations when selling unwarranted motor vehicles.

The OFT continues to crack down on unfair practices in the motor industry.

Under a statutory warranty, a motor dealer must guarantee the vehicle is free from defects, at the time of sale and for the warranty period. During the statutory warranty period the motor dealer must fix defects covered by the warranty.

Statutory warranty applies when:

• the odometer reading is less than 160,000kmand

• the date of ma

nufacture is less than 10 years before the sale date.

The warranty expires after 3 months or the first 5000km.

A motor dealer may advertise or display for sale an unwarranted vehicle but must tell a buyer it does not come with a statutory warranty. You can do this by

• clearly stating it in any advertisements for the vehicle

• putting a notice on the windshield or price tag

• placing signs at the main entrance to the dealership if all vehicles are unwarranted.

Failure to do so can result in a maximum penalty of $11,780. More information on guarantees and warranties for second-hand vehicles is available from the OFT website.