The NSW Government says legislation passed by state parliament reforming the Motor Dealers and Repairers Act 2013 improves consumer protection and deters illegal behaviour when repairing, selling, or recycling motor vehicles.
According to the government, the reforms will:
- Allow for the online end-to-end sale of motor vehicles in NSW
- Introduce specific consumer protection requirements for online motor dealers, including capping deposits from potential buyers and requiring dealers to display their licence number on all advertising material to enable buyers to research the vehicle
- Provide new protections for consumers when purchasing vehicles at auction by providing access to a vehicle’s inspection report before a 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 the sale of stolen parts by supporting the introduction of cashless transactions for motor vehicle recyclers, along with banning licensed recyclers from accepting cash or in-kind payment
“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,” said Anoulack Chanthivong, Minister for Fair Trading and Better Regulation. “We cannot 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.”
The government said the reforms follow extensive consultation with key stakeholders in the motor industry, including the Motor Traders’ Association of NSW (MTA NSW).
The association welcomed the move, with CEO Stavros Yallouridis saying: “MTA NSW has been steadfast in its commitment to representing the interests of the motoring industry. This has been achieved through our work on multiple submissions, conversations, and engaging with members of Parliament, including the minister, the shadow minister, and members of the cross bench.”
The association said that while the passage of the Motor Dealers and Repairers Amendment Bill through the NSW Parliament is a significant achievement, it marks the beginning of a comprehensive process, including a review and amendment of the regulations.
“The industry still requires certainty that the regulations provide, and MTA NSW is committed to ensuring that these regulations align with the needs and expectations of both businesses and consumers,” said Yallouridis.