Consumer Affairs Victoria is pursuing legal action to protect consumers from car sellers who break the law.
It’s currently targeting licensed and unlicensed sellers whose conduct has undermined consumers’ rights when buying a used car.
Two companies operating car businesses in metropolitan Melbourne were recently suspended from trading.
They had failed to deliver cars to customers, to pay or transfer stamp duty, and to return deposits on cancelled contracts.
More than 200 customers have so far claimed over $330,000 from the Motor Car Traders Guarantee Fund, after losing money dealing with two suspended traders.
The fund compensates Victorians who suffer financial loss from dealing with a licensed car business that breaks the law.
In Victoria, unlicensed traders face maximum penalties of up to $19,000, or 15 per cent of the sale price, for each car they buy, sell or exchange.
Consumer Affairs is also launching a new campaign that will promote the laws that protect consumers when buying a car and encourage them to only buy from licensed dealers.
Buying from a licensed trader provides a cooling-off period, clear title and warranty. Combined with having access to compensation from the Motor Car Traders Guarantee Fund if things go wrong, these are protections that are not available if buying from an unlicensed seller.
To learn more about the fund, visit: https://www.consumer.vic.gov.au/about-us/funds-we-administer/motor-car-traders-guarantee-fund
To learn more about buying a used car safely, visit: https://www.consumer.vic.gov.au/consumers-and-businesses/cars/buying-a-used-car
