Licensed dealers are your best protection against used car rip-offs, says VACC

12 July 2026

Melbourne - The Victorian Automotive Chamber of Commerce (VACC) has welcomed the Victorian Government's move to give Consumer Affairs Victoria (CAV) stronger powers to tackle unlicensed motor car trading, while urging that the reforms draw a clear line between the illegal operators driving these problems and the state's reputable, licensed dealers.

Responding to the Government's announcement and the accompanying Consumer Affairs Victoria (CAV) research, VACC said the findings — including that close to a third of sampled vehicles were advertised online with odometers wound back by at least 25,000 kilometres — reflected the conduct of unlicensed traders operating outside the law, not the Licensed Motor Car Traders (LMCTs) who form the backbone of Victoria's automotive retail industry.

"We support any measure that stamps out odometer tampering and the sale of unsafe or misrepresented vehicles," said VACC Chief Executive Officer, Peter Jones. "But it's important Victorians understand who is actually behind this behaviour. These are unlicensed operators — people pretending to be private sellers on social media to avoid the obligations that licensed dealers meet every single day."

Mr Jones warned that odometer tampering was only half the danger. VACC has growing concerns that unsuspecting buyers are also being handed fraudulent roadworthy certificates when purchasing through unregulated online marketplaces — compounding the risk in a way many consumers never see coming.

"This is a double negative for buyers," Mr Jones said. "Not only might the vehicle have travelled far more kilometres than advertised, but the very document that's supposed to certify it's safe to drive can be worthless. A wound-back odometer hides how tired the car really is, and a fake roadworthy hides the fact it may not be safe at all. Consumers are effectively being duped twice in the same transaction — and often the first they hear of it is when the car fails, or when they try to register it."

"Reputable, licensed dealers are the solution here, not the problem. When you buy from an LMCT, you get statutory warranty protections, a guaranteed clear title, a genuine roadworthy, and real recourse if something goes wrong. That's the safeguard the law is designed to protect, and it's exactly what these unlicensed operators are deliberately sidestepping."

VACC is encouraging all Victorians in the market for a used vehicle to take three simple steps to protect themselves:

• Buy from a Licensed Motor Car Trader. Licensed dealers are bound by the Motor Car Traders Act, and offer consumer protections that private and unlicensed sellers simply do not.
• Treat online marketplaces with caution. Buying through platforms such as Facebook Marketplace carries real risk. Sellers can be anonymous, vehicle histories can be hidden, roadworthy certificates can be falsified, and there is limited recourse if the vehicle is not as described.
• If you do buy privately, get the car inspected. Always have any used vehicle independently checked by a qualified mechanic before you hand over money — don't rely on a roadworthy certificate supplied by the seller — and run a vehicle history check through the Personal Property Securities Register (PPSR).

Mr Jones said the reforms also underscored the need for online platforms to lift their game. "State regulators currently have very limited power to compel social media platforms to hand over seller details. If we're serious about protecting consumers, these platforms need to take greater responsibility for the trading that happens on them, and cooperate with regulators when things go wrong."

VACC said a properly resourced regulator benefits everyone — honest consumers and honest dealers alike — and called for the crackdown to be matched by sustained funding and a consistent, national approach to unlicensed trading across all states and territories.

"Every dodgy sale by an unlicensed operator chips away at consumer trust and unfairly tarnishes the thousands of licensed dealers doing the right thing," Mr Jones said. "Backing enforcement, backing consumer education, and backing the licensed trade is how we lift standards for everyone."

 

ENDS 

 

Media contact:

 

Andrew Molloy

Manager, Marketing & Communications

P. 03 9829 1247 | M. 0457 188 375 | E. [email protected] | W. vacc.com.au

 

Karla Leach

Executive Manager, Marketing and Communications

P. 03 9829 1247 | M. 0429 334 832 | E. [email protected] | W. vacc.com.au

 

 

 

About VACC

 

Founded in 1918, the Victorian Automotive Chamber of Commerce (VACC) represents over 5000 businesses in Victoria and Tasmania who employ more than 50,000 people. Member businesses range from new and used vehicle dealers, repairers, vehicle servicing, parts and component wholesale/retail and distribution and aftermarket manufacture, tyre dealers and automotive dismantlers and recyclers.

VACC develops the future workforce, employing 610 apprentices and trainees through its group apprenticeship scheme, and maintains memberships with the Motor Trades Association of Australia and Australian Chamber of Commerce and Industry and contributes to the national policy debate through these leading industry associations.