The Malinauskas Labor Government is introducing harsher penalties for shonky used car dealers.
For the first time, any dealer convicted for winding back an odometer will face imprisonment for up to two years or a tripled fine of up to $30,000 (up from $10,000).
For unlicensed dealing, we are doubling the potential jail time for third or subsequent offences from one year to two years in prison and raising the fine from $100,000 to $250,000.
The fine will increase from $100,000 to $150,000 for a first or second offence.
For body corporates, it would increase to $500,000.
In the last financial year, inspectors from Consumer and Business Services inspected nearly 170 used car dealers operating both from home and in car yards.
And there has been some concerning trends emerge.
We have seen an increase in licensed dealers intentionally selling under the guise of being a private seller to avoid their legal obligations such as providing a statutory warranty and failing to disclose whether a car was a repairable write off and that they are a licensed dealer.
Second-hand vehicle dealers must have a licence if they buy, sell or offer for sale four or more vehicles in 12 months.
We have also seen an uptick in complaints about unlicensed dealers selling from home via sites such as Facebook Marketplace and engaging in dodgy practices including selling with false papers and winding back the odometer to make it seem like the car has travelled fewer kilometres.
Licensed dealers operating both from home and in car yards have also been caught winding back odometers.
Over the last financial year, a total of six individuals were convicted of tampering with odometers, getting slugged a total of more than $35,000 in fines and compensation orders.
Of those, four were unlicensed.
Over the coming year, Consumer and Business Services will be cracking down on dodgy operators in the second-hand vehicle industry to stamp out those shonky dealers who do the wrong thing and we encourage people to report any vehicle dealer – licensed or unlicensed – who they suspect of behaviour.
As put by Andrea Michaels
We’re cracking down on dodgy second-hand car dealers.
For the first time, anyone caught winding back an odometer will face jail time or a fine that has tripled to up to $30,000 along with longer sentences and higher fines for unlicensed dealing.
As cost-of-living pressures continue to bite, many people are turning to second-hand car sales as a more budget-friendly way of purchasing a vehicle.
And while most dealers do the right thing, there are unscrupulous operators out there who’ll try to take advantage of people by engaging in dodgy practices.
It’s disgusting behaviour, which is why we are continuing to target this area to better protect people with harsher penalties.
When buying privately, exercise a great degree of caution – get the car inspected, check the odometer reading to see if the wear and tear on the car is consistent with the car’s supposed usage and visit the personal properties securities register to check the car hasn’t been stolen, flood damaged or written off.
As put by RAA Mobility Expert Mark Borlace
RAA certainly welcomes tougher penalties for dealers and unlicensed dealers who are trying to rip off unsuspecting car buyers.
A car is often the second largest investment a family or person might make after their house – so we’re potentially talking about a large chunk of their hard-earned savings.
When buying a used car the odometer is one of most obvious ways to gauge how much life is left in the car and if that has been tampered with then you might be buying a car that may have expensive repairs waiting for you.
As more cars have digital odometers, there’s a host of new devices infiltrating the market that scammers are using, but most can be detected.
RAA’s advice is to get the vehicle inspected by a trusted mechanic before purchase as that might be the cheapest form of pre-emptive insurance you could have!
