Dealer visits aim to safeguard members

12 May 2023

VACC Industry Policy Advisor Michael McKenna is touring Victorian Automobile Dealers Association (VADA) member dealerships to deliver crucial briefings following the release of his LMCT guide on best practice (cooling-off procedures, deposits, unlawful contract terminations by consumers). Book a briefing for your dealership.

With interest rates rising and the financial bite hitting the community, dealers must be prepared for claims citing the Australian Consumer Law (ACL) for issues that could simply be buyer's remorse.

The first stop was Mazda Ballarat, with Mr McKenna and the team tackling manufacturer indemnity obligations under Section 274 and 276 of the ACL. Mazda Ballarat Dealer Principal Daniel White and Fixed Operations Manager Joel Nutley discussed VACC’s 2022 Victorian State Election Manifesto, Fully Charged, and the call for further resourcing at VCAT that may help identify spurious claims bought against dealers.

VACC research shows an analysis of seven weeks of VCAT data – drilling down on 8,060 VCAT hearings (across all sectors under its purview) heard in that period – revealed 0.008 per cent of VCAT hearings noted the LMCT as a respondent. This equates to 65 hearings over a seven-week period, or one in every 124 VCAT hearings. With these findings in mind, Mr McKenna questioned the validity of some claims that it is an 'industry in crisis'.

Eastern Gippsland was the next destination on the dealer roadshow. Mr McKenna visited VADA members to discuss issues such as manufacturer indemnity supplier (dealer) rights under Australian Consumer Law Section 274, dealer 'cooling off' rights, and steps to take if a dealer terminates a contract as a result of a consumer breach.

The visits were fruitful, with many key issues identified that will help inform future chamber advocacy work. Thanks to Trent McKenzie at Dwyers Toyota, Anthony Cefala and Jason Tselepis at Sale Mazda and Mitsubishi, Darren Robbie at The Big Garage Nissan, and Gary Shannahan and the team at Traralgon Automotive Group for hosting the briefings.

Next up, Mr McKenna headed to Healesville Toyota to meet with Adam Pollock and his crew. The key agenda items? Manufacturer indemnity, consumer contract breaches, consumer odometer fraud, issues relating to Uncollected Goods, and how to deal with issues that may turn into an ACL-facing matter. 

Download: VACC Guidance for Licensed Motor Car Traders: How to deal with cooling-off procedures, deposits and unlawful contract terminations by consumers.

Book a briefing for your dealership