Double standards in used-car sales mean you could be on your own
I’m constantly astonished at the volume of used cars bought and sold privately in Australia each year.
It’s estimated that out of the total pool of used cars sold annually – around 3.8 million – nearly 60 percent are transacted by the owner either online or through other seller-to-buyer channels.
Representing VACC new- and used-car dealers in Victoria, I continue to remind government of the hurdles placed before industry when selling used cars, compared to the apparent no-holds-barred conditions for private sellers.
This is simply not fair.
While consumers fight hard for protections, like Australian Consumer Law and statutory warranties, they apparently throw this anxiety out the window when buying a car from someone they have never met, who doesn’t run a legitimate car sales business, and who may have a myriad of motives for shifting their lump of metal.
Used-car dealers must meet rigorous regulatory burdens when running their businesses – such as being a Licensed Motor Car Trader, which includes a criminal history and identity check, as well as submitting detailed business plans and financials to Consumer Affairs Victoria. They are also required to guarantee a clear title and check for any recalls before proceeding with a sale.
All while competing with the 60 percent of the market that is not required to meet these obligations.
From where I sit this just doesn’t seem right. If the industry is bound by statutory consumer protections, why shouldn’t everybody else who’s selling their car?
Think about that next time you’re searching for a used car.
Words: VACC CEO, Geoff Gwilym. As featured in the Herald Sun 13 December 2019.
Share your thoughts! E: ceo@vacc.com.au