The alternative to buying privately, or from an auction or car market, is to purchase a second-hand car from a licensed dealer. MTA dealer members are required to guarantee the title of any vehicle they sell and in most cases provide a warranty covering mechanical defects.

If you buy from an MTA member you are also protected by the MTA Code of Ethics - a commitment that sets out the obligations of members to the public and the standards by which a member will go about its business.

Incidentally, if you purchase a vehicle from a licensed dealer and it later turns out to have stolen the dealer is legally required to refund your purchase money. If the dealer is no longer trading your money will be repaid from the Motor Dealer Compensation Fund.

Forms 4, 6 and 8
When you buy from a licensed dealer in NSW you will find that most second-hand passenger vehicles offered for sale carry at least one notice prominently displayed. The notice tells you such important details about the vehicle as its make, model, price, engine number and distance travelled. It also summarises the dealer’s legal obligations to the purchaser and the terms of the warranty, if any, that applies to that particular vehicle.

Form 4 - is the simplest, applying to cars with no known defects which are covered by the minimum warranty of 3 months or 5,000 kilometers, whichever comes first.

Form 6 - is used when cars are covered by a warranty but where specific defects have been noticed and excluded from the warranty. This form also provides an estimate of repair costs. Cars which are sold under Form 6 must also be accompanied by a Certificate of Inspection which shows they are roadworthy at the time of sale.

Form 8 - is for cars not covered by a warranty. These are generally those more than ten years old, or those that have travelled more than 160,000 kilometers. A roadworthy certificate should be available for any vehicle which displays a Form 8.

Form 14 - is displayed on vehicles which are priced above the luxury car tax limit.
These vehicles are not covered by a statutory warranty. However they must be in a roadworthy condition when sold.