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1800 351 591 - VACC Advises Motorists to Steer Clear of Unlicensed Motor Traders


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SYDNEY – May 31, 2012: VACC, the peak automotive industry body in Victoria, has repeated its advice to car buyers to give unlicensed 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 for reporting 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 and distributing a ‘dob in an unlicensed car trader’ postcard as well as running a series of radio advertisements. Among VACC’s 5,000 members in the retail, service and repair sector of the automotive industry in Victoria, are more than a thousand VACC Licensed Motor Car Trader members, including used and new car dealers, motorcycle and commercial vehicle dealers.

“Unlicensed motor traders are a big problem for our members and for consumers. They present an unacceptable risk and should be identified quickly and prohibited from trading before they cause damage,” VACC Executive Director, David Purchase, said.

“Buying from an unlicensed motor trader means no consumer protection and no avenue for recourse. Buyers should only deal with a Licensed Motor Car Dealer because, by law, they provide a three-day cooling-off period; a three month, or 5,000 kilometre, statutory warranty; and clear title, which certifies that the car is not listed as having money owing on it,” Mr Purchase said.

Of the 430 reports of unlicensed motor traders received by CAV, 170 resulted in compliance and enforcement activities and court action has started against 12 alleged unlicensed motor car traders.

“Stamping out unlawful conduct by motor car traders will not only better protect consumers but ensure that responsible operators are not placed at a competitive disadvantage by illegal operators,” Minister for Consumer Affairs, Michael O’Brien, said.

To report an unlicensed motor trader, telephone 1800 351 591

Potential car buyers are advised to read ‘10 good reasons to buy from a Licensed Motor Car Trader’ (below) and download a copy of ‘Better car deals – a car buyer’s guide’ 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 business failure
  • 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 a registered vehicle
  • LMCTs offer a choice of many vehicle makes and models at one convenient location
  • A 3 day cooling off period applies to sales made by LMCTs
  • Drive away pricing clearly states the total cost with no additional hidden charges

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