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Buying a Car During the Holiday Period? Then Avoid the Kerbside Disaster


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MELBOURNE – Dec 27, 2012: VACC, working closely with Consumer Affairs Victoria (CAV), encourages car buyers to report unlicensed motor traders during the Christmas holiday period.

Unlicensed traders often use this time of year to tempt buyers with ‘bargains’ and ‘cheap deals’ and vehicles are often parked on kerbsides, outside pubs or advertised online.

In May 2011, VACC and CAV launched a hotline telephone number for licenced motor car traders, and buyers, to report suspected unlicensed car traders.

Since then, CAV has received 608 reports of alleged unlicensed motor car trading, of which 599 inquiries were commenced, with nine still pending.

From May 2011 to November 2012, CAV issued 263 actions against unlicensed car traders, including:

  • 122 SMS messages
  • 48 Compliance assistance letters
  • 45 warning letters
  • 48 major investigations

    “Some buyers over the holiday period will be tempted by what appears to be a cheap car for sale typically, from the kerbside, a backyard, outside a pub or online. These are not ‘bargains’ but costly mistakes, especially if the odometer has been wound back. Buying from an unlicensed trader means no consumer protection,” VACC Executive Director, David Purchase, said.

    Anyone who offers to buy, sell or exchange four or more cars in 12 months is deemed to be acting as a motor trader and anyone who trades in cars online, from their home or elsewhere without a licence is breaking the law.

    “Buyers should visit their local licensed motor car trader (LMCT) when they are ready to buy a vehicle. The LMCT number will be clearly displayed and they operate from a permanent building or premises. A licensed trader will provide the buyer with a three day cooling off period, a statuary warranty for passenger cars not more than ten years or less than 160,000km old and clear title on the vehicle. You will also be told, by the dealer, if the car has previously been written off,” Mr Purchase said.

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