New, demo or used: what comes with each when you buy from a dealer

Three cars sit side by side on a dealer's forecourt. One still has plastic on the seats, one has a few thousand test-drive kilometres on the clock, and the third arrived as a trade-in last week with a full service book. Same badge, and on paper three quite different purchases.

All three come with real protections when you buy from a licensed dealer. What changes is the warranty clock, the state rules and the dates on the paperwork. Here's how each works, what typically comes with it, and the kind of buyer each tends to suit.

The protection all three share

The ACCC says consumer guarantees "apply to new and second-hand cars purchased from a licensed dealer", and that they can't be taken away by anything a business says or does. Whichever you choose, the car must be of acceptable quality, be fit for any purpose you disclosed before the sale, match its description and come with clear title.

What counts as acceptable quality depends on the car. The ACCC's list of factors includes how old the product is, what it cost and whether it was sold new or second-hand. If something does come up, the ACCC says the dealer must help and must not send you off to the manufacturer.

New: the simplest paperwork

The ACCC notes that manufacturer warranties are usually provided for new cars and are usually included in the sale. It's a voluntary promise in addition to the consumer guarantees, and the ACCC requires any warranty against defects to state how long it lasts, so the term is there in writing for your dealer to walk you through.

Some states add their own layer. In NSW, a new car with less than 15,000 km at purchase comes with a dealer guarantee of 12 months or 20,000 km, whichever comes first, and NSW notes the dealer must fix defects during the first 12 months of ownership. Tasmania's statutory warranty also covers eligible new cars, for three months or 3,000 km from delivery.

Who it tends to suit: buyers who want a particular colour, specification or option pack, or the latest model year, and those who'd like to be the car's first registered owner. A factory order can mean a wait, which suits buyers whose timing is flexible.

Demonstrator: near-new, with a registration history

The ACT spells out what a demonstrator is in law: a car sold only to a dealer or wholesaler, registered only in the dealer's name (or a buyer's, in anticipation of the sale), and used only in connection with its sale or to demonstrate it to potential buyers. NSW puts it plainly: a demo "is not a new vehicle. It is classed as a used vehicle." Its used-car dealer guarantee expressly includes demo cars.

That registration is what shapes the warranty picture. In NSW, a car a dealer has registered for test drives is sold with a Form 5, which NSW says "discloses that the vehicle has already been registered and can impact the dealer guarantees and manufacturer's warranty." The state's dealer guarantee is also reduced by one month for every 2,000 km driven before purchase. Its own worked example is a car sold at 10,000 km, which leaves seven months or 20,000 km of dealer guarantee.

Same badge, three different sets of paperwork: the dates tell you which one you're buying.

Who it tends to suit: buyers who want a current model that's ready now rather than on order, and who are comfortable with some kilometres and some warranty time already on the clock.

Used: wider choice, with a state warranty behind it

The ACCC says most second-hand cars bought from a dealer are covered by an automatic state or territory statutory warranty, in addition to the consumer guarantees. Any unexpired manufacturer warranty can also come with the car: the ACCC notes these can in some cases be transferred to a new owner when the car is resold.

The car's history is covered too. The ACCC lists kilometres travelled, service history and accident or written-off status among the things a dealer must describe accurately on a second-hand car, part of what makes buying used from a licensed dealer a confident choice.

Cars, not motorcycles, as at 6 October 2026. Check the linked official source.

Who it tends to suit: buyers who want the widest choice of models and years, including ones no longer sold new, and those who like knowing how a particular car has been looked after.

Build dates, compliance dates and the national register

The age that decides a statutory warranty isn't measured the same way everywhere. Victoria uses the build plate, Queensland the built date, the ACT the date of manufacture, and Tasmania the date the compliance plate was fitted or the car was entered on the national register.

Under the federal Road Vehicle Standards rules, a build date is the month and year the vehicle was substantially completed. Since the Road Vehicle Standards laws were fully implemented on 1 July 2021, the Register of Approved Vehicles (RAV) has replaced the need for physical compliance plates, and it is publicly searchable. NSW suggests searching the VIN on the RAV to find the date a car was built, and checking that a new car's odometer reading is appropriately low.

Build date and first registration date are different dates, and your dealer can put both side by side for any of the three.

The bottom line

New, demo and used each come with the consumer guarantees of a licensed dealer sale, and each adds something different: a manufacturer warranty on a car you'll be first to register, a near-new car with a documented registration history, or a state statutory warranty on a car with a track record. Ask your dealer for the key dates in writing, and check the linked official source for your state.