NSW is the leader in new vehicle purchases in the nation, with 31% 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 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 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 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.
“These changes will go a long way to ensuring buyers in NSW have the best possible protection when purchasing a vehicle.”
