The Law Handbook 2024

Chapter 6.7: Buying a car 633 Roadworthiness certificates Apart from certain exceptions (see regs 72, 75 RSV Regulations), all registered cars must be roadworthy when sold or otherwise disposed of. Under section 42A of the MCT Act, a person must not sell a registered car (this includes a car with suspended registration) without a current roadworthiness certificate unless the buyer is a licensed car trader, or a special trader, or the car is sold at a public auction by a licensed auctioneer acting on behalf of the owner (penalty: 50 pu). A roadworthiness certificate is current if it has been issued within 30 days prior to the sale or disposal of the car (s 42A(4)). In order to be sold without a roadworthiness certificate, a car’s registration must be cancelled before the sale (unless the sale falls within one of the exceptions above). You should think carefully before buying a used car that is being sold without a roadworthiness certificate. Subject to certain exceptions (see reg 12 RSV Regulations), it is an offence to drive an unregistered car (s 7 RS Act). Before registering a car, VicRoads may request evidence verifying that the car complies with the standards for registration (reg 15 RSV Regulations). In the case of a used car, this is usually a roadworthiness certificate (reg 15(b)). Insurance companies also generally require proof of roadworthiness before they insure a car. If a car has significant problems that need to be fixed to get a roadworthiness certificate (e.g. rust), the cost of these repairs may exceed the car’s purchase price! Warning about roadworthiness certificates A roadworthiness certificate is primarily a test of a car’s safety, not its mechanical soundness. If you want to check the mechanical soundness of a car, you should get it inspected by an organisation such as the RACV or the VACC. If you believe that the roadworthiness certificate misrepresents the condition of the car, you should get another roadworthiness certificate from a licensed tester within 30 days of the date of the certificate provided by the seller. You should then go back to the original tester to discuss any faults that were verified by the second test. If you take the car along, you should ask the tester to contact the tester’s area supervisor to discuss the car. If the faults are dangerous, or the tester refuses to cooperate, or you suspect the car was actually not at the original tester’s premises on the day the certificate was issued (i.e. that the car was not inspected), you should contact VicRoads. Your complaint will be assessed and referred to VicRoads roadworthiness supervisors if necessary. Although VicRoads cannot force the tester to rectify the faults or compensate you, it can penalise the tester or cancel their licence (s 15A RS Act; reg 211 RSV Regulations). If you want to pursue the tester for compensation, you should seek legal advice about taking civil action in the Victorian Civil and Administrative Tribunal ( VCAT ) or in court (see Chapter 2.4: Legal services that can help). If the seller is a car trader and the roadworthiness certificate obtained by you is signif­icantly different from the one provided by the car trader, then you can use the new certificate as evidence to try to force the car trader to cancel the sale contract. You can also complain to Consumer Affairs Victoria. Is there a warranty? Is the warranty worthwhile? Car traders often offer ‘extended warranties’ as part of car sales. You should be wary of such warranties, as they can be so limited in their application that they are not worth the price you pay for them. You should only buy an extended warranty if you fully understand its terms and are certain that it will be worthwhile. New cars New car buyers must rely on the manufacturer’s guarantee, or on other legal remedies (e.g. in contract or the Australian Consumer Law). See ‘Motor Car Traders’ Guarantee Fund’, below. Used cars Private sellers do not give warranties. If you buy a used car privately and something goes wrong with the car, you have to rely on other legal remedies. If you buy a used car from a car trader, the MCT Act (s 54) requires the car trader to give a warranty in certain circumstances; this warranty is different from any ‘extended warranty’ that a car trader may offer.