- Inspections reveal some dealers not complying with repairable write-off rules
- Up to $2,000 fines apply for using wrong forms or providing inaccurate information
- Advice for consumers to ask questions and report non-compliance
Consumer Protection has sounded a warning for motor vehicle dealers to ensure they are complying with tighter regulations on the sale of repairable write-offs or face penalties, after inspections to date revealed mixed levels of compliance.
Since 7 June 2024, motor vehicle dealers in Western Australia must disclose to prospective buyers whether a vehicle under 15 years old is a repairable write-off by marking a check-box on the updated form required to be displayed in the window of every second-hand car being offered for sale.
To make sure the new rules were being followed, Consumer Protection deployed proactive automotive inspectors to conduct spot checks. Their findings ranged from some dealers still using the old pink and blue forms, to others displaying incomplete forms on vehicles offered for sale.
In the coming weeks, dealers who use incorrect, incomplete, or inaccurate forms will be subject to fines of up to $2,000 as compliance action is strengthened.
Further penalties of up to $5,000 may also be imposed by courts for any false or misleading statement or representation made on the form, under the Motor Vehicle Dealers Act. It would also be a breach of the Australian Consumer Law if dealers and auctioneers failed to disclose the true history of the vehicle when asked.
Dealers are responsible for providing all required information to consumers before they sign the vehicle sale contract, as well as ensuring their sales software uses the most up-to-date forms and that all information is accurate. While the updated forms are available online, dealers can adjust the formatting (for example, font, size, print size) as needed.
Commissioner for Consumer Protection Trish Blake said the crackdown was necessary to protect consumers from making a purchase they might later regret.
“Repairable write-offs can be a risky investment for consumers due to potential safety issues and low resale value,” Ms Blake said.
“Six months have passed since the introduction of rules mandating upfront disclosure of repairable write-offs, so it is unacceptable for dealers to be using outdated forms or failing to accurately mark the new forms with this vital information.
“We’re putting dealers on notice that our upcoming spot checks may result in fines for any detected breaches.
“It is recommended used car buyers continue questioning dealers about the history of the vehicles they are looking to buy and report any suspected non-compliance to us.”
A $2 search of the Personal Properties Securities Register (PPSR) will also reveal if a vehicle under 15 years old is a repairable write-off, has been stolen and is free of outstanding debts. To further protect consumers, there is also Consumer Protection’s easy-to-follow used car buyer’s checklist.
Complaints about dealers suspected of not following the new rules on repairable write-offs can be lodged on the Consumer Protection website. Enquiries can be made by calling 1300 30 40 54 or emailing consumer@demirs.wa.gov.au
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Media Contact: cpmedia@demirs.wa.gov.au