Selling caravans and RVs
Photoelectric smoke alarms required in caravans and RVs
From 1 July 2024, all caravans and recreational vehicles (RVs or motorhomes) must have a photoelectric smoke alarm installed when their registration is commencing or being transferred.
For more information visit the Queensland Fire and Emergency Services website.
If your business sells caravans or recreational vehicles (RVs or motorhomes) in Queensland you must abide by:
- the Australian Consumer Law (ACL), including the automatic consumer guarantees
- any statutory, manufacturer or other warranties that apply.
It's your responsibility to understand your obligations and honour any warranties that apply.
To sell used caravans or RVs you must be a licensed motor dealer and comply with relevant Queensland motor dealing laws.
Your ACL obligations
You (and your staff) must understand your ACL obligations as a caravan or RV sales business.
You must be aware of the key rules about:
- consumer guarantees
- false and misleading representations
- lay-by agreements—you may be entering into this type of agreement without realising it.
For more information about your ACL obligations access our ACL guides for businesses and legal practitioners or order copies.
Selling used caravans or RVs
If you buy or sell used caravans or RVs in Queensland—including on consignment—you must be licensed as a motor dealer under the Motor Dealers and Chattel Auctioneers Act 2014 and comply with the Motor Dealers and Chattel Auctioneers Regulation.
In certain circumstances, you must also comply with the Agents Financial Administrations Act 2014 (AFA Act) and Agents Financial Administration Regulation 2014.
These laws specify the rules you must follow, the approved forms you must use, and how to handle any money you receive for consignment sales. If you don't have the correct licence or use the correct forms you can face penalties.
Selling on consignment
Before selling caravans or RVs on consignment the customer must appoint you to do this on their behalf. To be appointed, complete the Appointment of a motor dealer or chattel auctioneer form (Form 9).
If you're not correctly appointed, you won't be entitled to a commission or fees for the sale and you could face penalties.
Any payments you receive from a buyer while selling on consignment must be placed in a trust account. Misuse of trust money and other breaches of the AFA Act are severe and can attract significant fines and prison time. You can also be prosecuted under the Criminal Code 1899.
Download the Trust accounts guide or order a copy to understand your legal obligations.
Read more about dealing with trust accounts in the motor industry.
Types of warranties and what they cover
A warranty is a promise you provide to your customer. Once they buy a caravan or RV the warranty becomes a right that can be enforced under legislation.
Warranties are separate from—and additional to—automatic consumer guarantees under the ACL. Consumer guarantees apply for a reasonable time and may continue to apply after a warranty has expired.
Your warranty obligations vary depending on the type and value of the caravan or RV you're selling.
Several different warranties can apply to a vehicle, part of a vehicle or its body. For example, certain motorhomes and campers attach to a vehicle—these may attract different warranties for the vehicle part and the camper part.
Statutory warranty for used vehicles
Statutory warranties are compulsory for all second-hand vehicles sold in Queensland. However, dealers don't need to provide statutory warranties for used caravans—automatic consumer guarantees still apply. For campers or motorhomes that attach to used vehicles you don't need to provide a statutory warranty for the body and contents of the camper or motorhome part, only the 'car' portion, which is classed as a vehicle. However the ACL consumer guarantees apply to both the vehicle and the camper.
How long a statutory warranty applies to the vehicle depends on its age and/or the kilometres it has travelled.
Read more about statutory warranties for used vehicles.
Express warranty
An express warranty applies if you make extra verbal or written promises or representations about the quality or standard of the caravan or RV. For example, you'll be providing an express warranty if you make statements about:
- its quality, state, condition, performance or characteristics
- what it can do and for how long
- the availability of servicing, parts or identical goods.
If you don't comply with an express warranty, your customer will have legal rights under their ACL consumer guarantees.
Manufacturer's warranty (or warranty against defects)
A manufacturer's warranty is a promise to the customer that if the caravan or RV—or part of it—fails or becomes defective within a certain period it will be repaired, replaced or resupplied, or you'll compensate the customer.
A manufacturer's warranty doesn't need to be a formal document. Any written document containing promises about the product—like the words on a package, in a user manual or on a sticker—could be evidence of a manufacturer's warranty.
If you manufacture a product—including caravans, campers, motorhomes or RVs—and offer a manufacturer's warranty, you must ensure it's easy to read and includes:
- your business name, address, phone number and email address
- information about how the customer can make a claim under the warranty
- information about how you'll honour a claim
- a statement that the warranty is offered in addition to the customer's ACL consumer guarantees and can't exclude them.
If you sell a used vehicle with some manufacturer's warranty still remaining, you must help consumers who raise issues under that warranty.
Extended warranty or care package
Some retailers offer extended warranties or care packages to extend the length of the manufacturer's warranty. This type of warranty is an insurance product and is optional.
When offering an extended warranty you risk breaching the ACL if:
- you use unfair tactics or put undue pressure on the customer to make the purchase by offering them an extended warranty, or pressure the customer into thinking they need one
- you mislead the customer by stating they'll receive additional guarantees under this type of warranty—their consumer guarantees apply automatically, regardless of the warranty you offer
- it contains unfair contract terms.
If you're offering an extended warranty you should also consider the requirements set by ASIC for insurance products.
More information about warranties
Read more about:
Resolving consumer complaints
The most common complaints the Office of Fair Trading receives about caravan and RV sellers relate to:
- unacceptable quality
- warranty conditions
- misrepresentations made to buyers
- non-supply or delayed supply.
To resolve consumer complaints before they get to us we recommend you:
- develop and implement an effective consumer complaint handling policy
- quickly and effectively respond to complaints you receive
- show customers you’re willing to work with them to fix issues.
Read more about dealing with complaints about your business.