Australian Capital Territory Consolidated Acts

SALE OF MOTOR VEHICLES ACT 1977 - SECT 23

    (1)     Except as provided in this section and sections 24 and 25, if a motor vehicle described in schedule 1, column 2 is sold by a dealer and before—

        (a)     the vehicle has been driven for the number of kilometres after being manufactured or sold, as the case may be, specified opposite the description of the vehicle in schedule 1, column 3; or

        (b)     the end of the period, specified opposite the description of the vehicle in schedule 1, column 4, after the vehicle is so sold;

whichever first occurs, a defect appears or occurs in the vehicle, the dealer shall, whether or not the defect existed at the time of the sale, at the dealer's own expense, repair or make good, or cause to be repaired or made good the defect so as to place the vehicle in a reasonable condition having regard to its age.

    (2)     The dealer's obligation under subsection (1) shall be taken to be a term of the contract of sale relating to the vehicle.

    (3)     For subsection (1), a defect that occurs in a vehicle includes a defect—

        (a)     that existed in the vehicle at any time before the occurrence of an event referred to in subsection (1) (a) or (b); and

        (b)     that first became apparent after the event occurred;

but only if the defect is reported to the dealer within a reasonable period after it becomes apparent.

    (4)     For the purposes of calculating the period referred to in subsection (1) (b), no regard shall be paid to any period during which the dealer has the motor vehicle in his or her possession for the purpose or purported purpose of ascertaining or carrying out his or her obligations under subsection (1).

    (5)     The obligation of a dealer under subsection (1) in relation to a new motor vehicle sold by the dealer is extinguished if, subsequent to that sale, the dealer or another dealer acquires ownership of the vehicle, or the vehicle is repossessed by a financier.

    (6)     Subject to subsection (5), the obligation of a dealer under subsection (1) in relation to a new motor vehicle sold by the dealer subsists for the benefit of the owner, from time to time, of the vehicle and, for this purpose, the owner from time to time shall be taken to have entered into a contract of sale with the dealer in relation to the vehicle.

    (7)     The obligation of a dealer under subsection (1) in relation to a second-hand motor vehicle sold by the dealer is an obligation only to the person who purchased the vehicle from the dealer.

    (8)     The fact that a dealer's licence has been revoked, or that a dealer is not the holder of a dealer's licence or has ceased to be a dealer, does not affect the dealer's obligation under subsection (1).

    (9)     If the holder of a dealer's licence sells a motor vehicle on behalf of another dealer, this section does not apply to the other dealer.