Motorists pay the price for roadworthy oversight

12 November 2018

The cost of unnecessary roadworthy certificates to Victorian consumers is estimated to be $22.2 million per annum, not to mention the unnecessary red-tape businesses endure.

The Victorian Automobile Chamber of Commerce (VACC) is serious about driving change, lobbying VicRoads for the last three years to exempt select dealer owned cars. The cars in question are those that have less than 50km on the clock and have been held as dealer stock for a period of less than three months.

A recent dealer survey, spearheaded by VACC, yielded results that support the call for reform. Results were unsurprising to dealers and VACC but may raise eyebrows of otherwise unaware motorists.

Over 600 responses were gathered, revealing that 84.5 percent of low kilometre dealer stock, which had a roadworthy certificate completed, showed an odometer reading of less than 50km. Furthermore, 99.4 percent of vehicles required no rectification work to be completed as part of the roadworthy certificate.

These vehicles should not require a roadworthy certificate. However, as it is currently a legal requirement, Victorian consumers are covering the certificate cost and unnecessarily paying over $200 extra upon purchase of a new vehicle.

Members of the Victorian Automobile Dealer Association (VADA) have been frustrated for some time about the requirement to obtain a roadworthy certificate when retailing a new, registered, low kilometre vehicle, that has only ever been owned by a new car dealer. These low kilometre cars can be demonstrator vehicles, Retail Delivery Advice cars (also known as cyber cars) or vehicles where a consumer reneges on a deal.

The growing prevalence of low kilometre trading stock within car dealerships has resulted in unprecedented internal price rises. Costs are absorbed by VADA members, as they are required to obtain a roadworthy certificate for these vehicles when presenting them for retail sale. It then lands in the lap of the consumer.

Above would constitute a sensible reform, benefitting both Victorian businesses and consumers.

VACC has provided a formal submission to VicRoads in pursuit of this reform, and will keep motorists and the automotive industry updated.