The Code of Practice for Motor Vehicle Traders

The Code of Practice for Motor Vehicle Traders covers a range of issues surrounding the sale of a motor vehicle and by law imposes certain obligations on Motor Vehicle traders. These include:

In advertising a motor vehicle, a trader must not make a claim which is or may be false or misleading.
A trader must not conceal or misrepresent the condition of a vehicle.
If there are doubts about the accuracy of the odometer reading of a used vehicle, the trader must verify the accuracy of the reading and inform any prospective buyer of the cause for doubts and the verified facts in relation to the reading (if known).
A trader must ensure that a vehicle sold is of merchantable quality.
Any encumbrances on the vehicle must be discharged at the time it is transferred to the trader - that is before it is sold.
If a vehicle has travelled less than 120,000 kms and is less than 7 years old, the trader must give a written warranty. The warranty period is 3 months or 3,000 kilometres, whichever comes first.
Certain vehicles such as four wheel drive vehicles, commercial vehicles and motor cycles are not required to have a warranty.

Even if the car you are buying is not required by law to have a warranty, you can still negotiate with the dealer to provide one.  Make sure you understand what the warranty covers.

If during the warranty period a defect occurs which is covered by the warranty, the trader must repair the defect at no cost to the owner.

Private sales of motor vehicles are not covered by the Code.