VACC Supports Consumer Affairs Victoria Action Against Unlicensed Motor Car Traders

VICTORIA, AUSTRALIA – Sept 26, 2011: “The net is closing in on unlicensed motor car traders. Anyone who suspects someone is operating as an unlicensed motor car trader is encouraged to dob them in by calling Consumer Affairs Victoria’s free hotline on 1800 351 591,” The Honourable Michael O’Brien, MP, Minister for Consumers Affairs, said.

VACC has welcomed legal action against a number of unlicensed motor traders in Victoria.

Consumer Affairs Victoria’s (CAV) annual report has highlighted how the agency has increased its crackdown on unlicensed and unlawful motor car traders in the last financial year.

CAV finalised 15 court actions against licensed and unlicensed motor car traders in 2010-2011. Unlawful motor car traders incurred convictions, good behaviour bonds and financial penalties and paid compensation of nearly $158,000 in the last financial year.

Under the Motor Car Traders Act 1986, a person who carries on the business of trading in motor cars must have a licence. The Motor Car Traders Act and Regulations applies to all motor vehicle traders including motorcycles and trucks, in Victoria, who buy, exchange or sell cars irrespective of whether a car is new, old, used, damaged, complete or incomplete. In short, anyone who offers to buy, sell or exchange four or more cars in 12 months is deemed to be acting as a motor trader.

VACC supports the hotline which was launched in May and encourages motorists and Licensed Motor Car Traders (LMCT’s) to report anyone suspected of illegally selling vehicles from the home, kerbside, pub or any other unlicensed premises. CAV received more than 100 reports by the end of June. VACC understands this figure is now fast approaching 200.

“Car buyers should only deal with a LMCT as, by law, they provide a three-day cooling-off period; a three month or 5,000 kilometre statutory warranty; and clear title, which certifies that the car is not listed as having money owing on it,” VACC Executive Director, David Purchase, said.

“They should also read ‘Better car deals – a car buyer’s guide’ which is available from VACC’s website, vacc.com.au. Unlicensed car and motorcycle traders present an unacceptable risk to consumers and should be identified quickly and prohibited from trading before they cause damage,” Mr Purchase said.