Make / Model Search

News - General News - Regulation

Victoria trims red tape for car traders

Paper cuts: Changes to Victoria’s Motor Car Traders Act 1986 affect how buyers are told about the three-day cooling-off period after signing a contract, as well as cutting red tape for dealers.

Tweaked car trade laws to help dealerships and buyers

18 Aug 2014

VICTORIAN car buyers should soon start to benefit from amendments to laws that simplify the information that dealers need to disclose.

Amendments to the Motor Car Traders Act 1986 aim to streamline some of the red tape tied up in buying a car, and now mean that a dealer must make it clearer to buyers that they have up to three days to back out of a purchase after signing a contract.

The changes also mean used car dealers will not need to display the details of a car’s previous owner, even if asked to provide them by a potential customer.

New cooling-off period and ownership disclosure regulations, which come into effect from November 1, simplify the amount of paperwork that licensed motor car traders (LMCTs) are required to complete.

According to the Victorian Automotive Chamber of Commerce (VACC), which represents the interests of used-car dealerships in the state, the cuts should save the industry $1 million a year, while consumers will benefit from having “clearer documentation on the purchase of vehicles”.

“The current car buying process in Victoria works well and when purchasing from an LMCT, buyers receive a number of protections, including a three day cooling-off period,” VACC executive director David Purchase said.

“However, a number of administrative changes will make documents even clearer and provide more safeguards for buyers,” he said.

“For example, information about the three day cooling off period will become more prominent on the contract of sale.

“The three-day cooling-off period change alone is a big win for motorists, and when you take into consideration the many other significant red tape cuts contained in the bill, this really is welcome news.

“It is a good piece of legislation and ... Victoria deserves credit for listening to industry, assisting small business and showing decisive leadership,” Mr Purchase said.

He said the chamber looked forward to working on more opportunities to cut red tape.

The Road to Recovery podcast series

Read more

Click to share

Click below to follow us on
Facebook  Twitter  Instagram

General News articles

Motor industry news

GoAutoNews is Australia’s number one automotive industry journal covering the latest news, future and new model releases, market trends, industry personnel movements, and international events.

Catch up on all of the latest industry news with this week's edition of GoAutoNews
Click here