I bought a second-hand car from a dealer and it broke down within a week. Am I covered by consumer guarantees?

What the Law Says

The Australian Consumer Law (ACL) provides automatic consumer guarantees that apply to all goods sold by businesses — including second-hand cars sold by licensed or unlicensed dealers. These guarantees exist regardless of any 'as is' disclaimer or separate warranty.

When you buy a car from a dealer (even a private seller acting as a business), the ACL guarantees it will be of acceptable quality, fit for its purpose, and match its description or sample. 'Acceptable quality' means the car should be safe, durable, free from defects, and suitable for normal use — considering its age, price, and advertising.

The guarantee applies no matter the car’s age or mileage, and there is no price threshold: even cars over $100,000 are covered. The guarantee lasts for a reasonable time — which could be months or years depending on factors like the car’s condition, price, and advertised reliability.

If the car breaks down within a week, this strongly suggests it failed to meet the acceptable quality guarantee at the time of sale — especially if the fault was not obvious before purchase and wasn’t caused by misuse.

Statutory Text

A consumer is entitled to a guarantee that goods are of acceptable quality.

— Australian Consumer Law, s. 54 — Goods must be of acceptable quality

Statutory Text

Goods are of acceptable quality if they are safe, durable and free from defects; and acceptable to a reasonable consumer.

— Australian Consumer Law, s. 54(2)

Statutory Text

These guarantees apply whether or not the supplier intends to provide them and cannot be excluded, restricted or modified.

— Australian Consumer Law, s. 64 — Guarantees cannot be excluded

What to Do

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