Crucial reforms to the Motor Dealers and Repairers Act 2013 that improve consumer protection and deter illegal behaviour when selling, repairing or recycling motor vehicles have passed the NSW Parliament.
NSW is the leader in new vehicle purchases in the nation, with 31 per cent of the 1 million purchases nationwide made by consumers of this state.
NSW holds the biggest segment of Australia’s $37 billion automotive industry.
The Government’s reforms to this critical sector will;
- Allow for the online end-to-end sale of motor vehicles in NSW
- Introduce specific consumer protection requirements for online motor dealers, including requiring dealers to display their licence number on all advertising material so buyers can research them and capping deposits from potential buyers.
- Provide new protections for consumers when purchasing vehicles at auction who will now have access to the vehicle’s inspection report before purchase.
- Enhance powers to crack down on odometer tampering by banning possession of odometer tampering devices to minimise fraud in the sale of second-hand vehicles.
- Reduce the potential for sale of stolen parts by supporting the introduction of cashless transactions for motor vehicle recyclers by banning licensed recyclers from accepting cash or in-kind payment.
The reforms follow extensive consultation with key stakeholders in the motor industry, including the Motor Traders’ Association of NSW.
Minister for Fair Trading and Better Regulation Anoulack Chanthivong said:
“Whether it’s brand new or second hand, a car is a major investment and consumers should have confidence that what they are buying is exactly as advertised.
“We can’t have cars being sold which have had their odometers wound back, or stolen vehicles or parts unloaded at motor recycling yards in exchange for under the table cash.
“These changes will go a long way to ensuring buyers in NSW have the best possible protection when purchasing a vehicle.”