If you buy a used car from a motor car trader, the MCT Act requires the trader to give a
warranty in certain circumstances; this warranty is different from any “extended warranty” that a trader may offer.
If a defect appears during the warranty period, whether or not it existed at the time you took delivery of the used car, the motor car trader will have to repair or make good the defect at their own expense so as to place the car in a reasonable condition having regard to its age.
The warranty applies if the car was manufactured not more than 10 years before the date of sale and has been driven for less than 160,000 km. The warranty period is 5,000 km or three months from when you take delivery of the car, whichever occurs first. Any period during which the trader has the car for the purposes of meeting warranty obligations does not get counted as part of the three-month warranty period.
If you suffer loss as a result of a trader failing to honour the warranty, you may make a claim to the Motor Car Traders’ Guarantee Fund (see below) for compensation (s 76 MCT Act).