Media releases

Illegal motor traders stopped in their tracks

13 March 2020

In a move set to hearten the motor trade industry, Consumer Affairs Victoria has taken criminal action against four individuals guilty of illegal motor car trading, hitting them with combined fines totalling over $123,000 – an outcome applauded by peak industry body, the Victorian Automobile Chamber of Commerce (VACC) and its new-car dealer division, the Victorian Automobile Dealer Association (VADA).

“VACC congratulates the Department of Justice and Community Safety on this initiative. For too long, unlicensed vehicle traders have been illegally trading in motor vehicles to the detriment of Licensed Motor Car Traders,” said VACC CEO, Geoff Gwilym.

Under the Motor Car Traders Act 1986, a person dealing in four or more cars per year is required to be licensed, a guide set in place to protect the best interests of motorists and business owners, but one that is often ignored.

In announcing the action, Acting Director of Consumer Affairs Victoria, Michelle Osborne declared, “It’s unfair for some motor car traders to ignore rules that the rest of the industry are abiding by... These court outcomes act as a strong deterrent for anyone considering this dodgy line of work”.

But, while VACC applauds the work of the Department of Justice and Community Safety, there remain illegal elements that need to be eliminated.

“Any action that sees the demise of unlicensed vehicle trading is welcome by VACC and VADA. But there is still work to be done,” said Mr Gwilym. 

“VACC reminds the Andrews Government that auction houses can inadvertently be sources that aid and abet the acquisition and disposal of excess stock at mainstream and salvage auctions by unlicensed traders.”

VACC urges Consumer Affairs Victoria to remind Victoria’s auction houses that under Section 50A(1) of the Act that it is an offence for a person to:

(a) in the course of carrying on a business, to provide to a person who is not a licensed motor car trader with motor cars that the person knows are likely to be disposed of in a manner that constitutes trading in motor cars by the unlicensed person; or
(b) in any other way cause or permit or aid or abet any person who is not a licensed motor car trader to carry on business as a motor car trader.

“When every element within the automotive industry is abiding by the law, then VACC and VADA will be satisfied,” said Mr Gwilym.

ENDS