Consumers Protected By Mta Lobbying On Second Hand Vehicle Dealers Act

THE MOTOR TRADE ASSOCIATION OF SOUTH AUSTRALIA INCORPORATED
Level 1, 81 Greenhill Road, Wayville SA 5034 THE MOTOR TRADE ASSOCIATION OF SOUTH AUSTRALIA INCORPORATED GPO BOX 2204, ADELAIDE 5001
TELEPHONE: (08) 8291 2000 FACSIMILE: (08) 8291 2099
INTERNET: http://www.mta-sa.asn.au EMAIL: [email protected]

CONSUMERS PROTECTED BY MTA LOBBYING ON SECOND HAND VEHICLE DEALERS ACT

Successful lobbying by the Motor Trade Association has ensured that a compensation fund set up to assist car buyers with claims against dealers will not be plundered by the State Government to fund public servants.

MTA Executive Director John Chapman said the Association had strongly opposed the move by the Government in changes to the Second Hand Vehicle Dealers Act to transfer responsibility for claims from the Magistrates Court to the Commissioner for Consumer Affairs.

"We believe the Courts are the best place to determine claims," Mr Chapman said.

"We were also concerned that under the proposed legislation to introduce a two day cooling off period, the State Government was trying to open the second hand vehicle compensation fund up to pay for running the Office of Consumer and Business Affairs."

"That we strongly opposed and the Minister for Consumer Affairs, Hon Gail Gago agreed that the cost savings originally envisaged were not there."

The fund has more than $4 million which is the direct result of legislated contributions paid by car and motorcycle dealers annually. Claims against the fund in 2007/08 totalled $128,000.

"This fund must be managed responsibly for the benefit of consumers," Mr Chapman said.

The legislation, which has just been passed by State Parliament, provides for a two day cooling off period for people who buy a used car or motorcycle from a licensed dealer.

The MTA has also been successful in securing a simple cooling off waiver form which will allow buyers to take a vehicle at time of purchase rather than wait for two business days to complete their purchase.

"We believe that most people are in a position to make a decision on a purchase and they should be allowed to take a vehicle on the spot if they so choose," Mr Chapman said.

"For those who want time to think, they will have two business days to do so but the dealer will also be compensated for their time if a buyer cools off."

The MTA was also successful in securing a change to the legislation to allow for dealers to secure a deposit of up to 10% on execution of the sales contract.

"The Government's proposal was for only the amount of the non-refundable cooling off fee of $100 or 2% whichever was lesser to be charged as a deposit with the balance having to be secured by the dealer after the cooling off period had expired," Mr Chapman said.

"This was not really workable and I am pleased we were able to convince the Consumer Affairs Minister, Hon Gail Gago MLC, that this should be amended so dealers can secure a reasonable deposit which we believe will stop unnecessary shopping around by consumers."

Mr Chapman said the MTA was also successful in having the legislation amended to provide funding for education of consumers, dealers and salespeople as well as increased compliance activities on backyarders.

"We believe these are appropriate uses for the compensation fund which has grown substantially in recent years," Mr Chapman said.

Mr Chapman said the MTA welcomed tougher penalties which were also part of the changes.

"The Government has recognised the issue of backyarders and the damage they do to consumers by selling dodgy and unroadworthy vehicles," Mr Chapman said.

"The widening of the legislation to include family, members of the same household or business partners in the net for illegal dealers is a great step forward."

Mr Chapman said too often backyarders had been able to avoid the law because they claimed vehicle sales were in other peoples names.

For further information:

John Chapman T 08 8291 2000
MTA Executive Director M 0418 829 964


SOURCE: The Motor Trade Association of South Australia Incorporated