SYDNEY – May 31, 2012: VACC, the peak automotive industrybody in Victoria, has repeated its advice to car buyers to giveunlicensed motor traders a wide birth. In May 2011, VACC joined forces with Minister for Consumer Affairs,Michael O'Brien, at the launch of a telephone hotline forreporting unlicensed motor traders. During the last twelve months,Consumer Affairs Victoria (CAV) has received more than 430 reports. VACC promoted the hotline number to consumers by producing anddistributing a ‘dob in an unlicensed car trader'postcard as well as running a series of radio advertisements. |
AmongVACC's 5,000 members in the retail, service and repair sectorof the automotive industry in Victoria, are more than a thousandVACC Licensed Motor Car Trader members, including used and new cardealers, motorcycle and commercial vehicle dealers. "Unlicensed motor traders are a big problem for our membersand for consumers. They present an unacceptable risk and should beidentified quickly and prohibited from trading before they causedamage," VACC Executive Director, David Purchase, said. "Buying from an unlicensed motor trader means no consumerprotection and no avenue for recourse.
Buyers should only deal witha Licensed Motor Car Dealer because, by law, they provide athree-day cooling-off period; a three month, or 5,000 kilometre,statutory warranty; and clear title, which certifies that the caris not listed as having money owing on it," Mr Purchase said. Of the 430 reports of unlicensed motor traders received by CAV, 170resulted in compliance and enforcement activities and court actionhas started against 12 alleged unlicensed motor car traders. "Stamping out unlawful conduct by motor car traders will notonly better protect consumers but ensure that responsible operatorsare not placed at a competitive disadvantage by illegaloperators," Minister for Consumer Affairs, MichaelO'Brien, said. To report an unlicensed motor trader, telephone 1800 351 591 Potential car buyers are advised to read ‘10 good reasons tobuy from a Licensed Motor Car Trader' (below) and download acopy of ‘Better car deals – a car buyer'sguide' from vacc.com.au 10 Good reasons to buy from a Licensed Motor Car Trader All consumers are protected by the Motor Car Traders Act All vehicles must be sold with clear title and no money owed All vehicles are covered by a statutory warranty The Motor Car Traders Guarantee Fund protects against LMCT businessfailure All transactions are contracted in writing. LMCTs will often offer to trade-in making the change over easy A Roadworthiness Certificate is supplied with each sale of aregistered vehicle LMCTs offer a choice of many vehicle makes and models at oneconvenient location A 3 day cooling off period applies to sales made by LMCTs Drive away pricing clearly states the total cost with no additionalhidden charges.
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