Proposed Changes to QLD Second Hand Car Buying Consumer Protection Bill

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BUYERS of second-hand vehicles more than a decade old will be left with no consumer protection in Queensland under law changes proposed by the State Government.

The Motor Dealers and Chattel Auctioneers Bill due to go before Parliament this year, removes the requirement for licensed dealers to provide a statutory warranty for older vehicles and those with more than 160,000km on the clock.

The one-month or 1000km warranty protects consumers if the vehicle has mechanical problems but can cost dealers a considerable sum.


A significant number of cars on Queensland roads are 10 years or older, with the average age of 4.6 million registered vehicles 9.6 years.

Queensland's peak motoring body, the RACQ, has voiced its concern about the change, saying it would leave first-time car buyers and those least able to afford mechanical repairs without any safety net.

Technical researcher Russell Manning said the RACQ supported change that reduced red tape but this change to consumer protection would only benefit dealerships. "The consumers will be the biggest losers if the proposed changes go ahead, particularly young drivers and those who aren't able to afford a newer car," Mr Manning said.

"The vehicles most likely to require the cover from a statutory warranty are those that won't be covered if this Bill goes ahead."

Unlicensed and backyard dealers are not required to provide a statutory warranty for older vehicles, making licensed car dealers a better option for buyers of older vehicles.

Mr Manning said the dealers had lobbied the Government for the change to reduce costs and regulatory burden.

"It could encourage buyers to opt for a non-dealer sale," he said

Vehicle safety was another issue, Mr Manning said.

"The people buying those sorts of cars can least afford to have something go wrong," he said.

"If it does and they can't afford to fix it, you're left with some pretty dangerous vehicles on the road."

Brisbane Motor Auctions' principal Michael Kennedy also raised concerns about the removal of consumer protection in a submission to the Legal Affairs and Community Safety Committee which is examining the Bill.

But Attorney-General Jarrod Bleijie told Parliament last year the legislation would cut costs and the regulatory burden for dealers.

"Removing short-term, statutory warranty requirements for older, typically low-value vehicles will make legitimate sales of these vehicles more viable," he said.

"It will also reduce the prevalence of illegal dealings in these vehicles."

The committee will report to Parliament on February 24.
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