VACC calls for reforms to used car industry

Melbourne, 31 October – The Victorian Automotive Chamber of Commerce (VACC) has responded to Consumer Affairs Victoria’s (CAV) inquiry into the sale of used motor vehicles, calling for essential reforms to protect consumers and support Victoria’s automotive retail industry.

“Buying a used vehicle is inherently different from purchasing a new one,” said Geoff Gwilym, VACC CEO. “Consumers need to have realistic expectations about the nature of used vehicles, which often come with some level of wear and tear due to age and previous use. However, it’s clear the current laws have room to be refined to balance consumer expectations with industry standards.”

VACC’s submission outlines key recommendations, such as:

• Distinctive consumer guidelines for Used Vehicles: VACC is urging regulators to establish clear definitions around acceptable quality for used vehicles, recognising that these vehicles are not new and should not be expected to perform as such.
• Enhanced consumer awareness: Proposed reforms include a mandatory warning on online platforms and auction houses, informing consumers of the limited protections when purchasing vehicles from private sellers, as opposed to LMCTs who offer statutory protections and warranties.
• Accountability in private sales: To tackle prevalent odometer fraud and the misrepresentation of vehicle quality in private sales, VACC recommends the creation of a cross-agency task force. The task force would focus on unlicensed trading, odometer tampering, and fraudulent sales practices, protecting both consumers and legitimate traders.
• Proposed legislative changes: VACC is also calling on the Victorian Government to streamline remedies available under the Australian Consumer Law (ACL), particularly by ensuring that private vehicle sales meet transparent standards that licensed dealers are already upholding.

“We want to ensure a fair playing field,” Gwilym added. “With stronger, clear-cut consumer protection guidelines, consumers will have realistic expectations, and the industry’s reputation will be upheld.”

As the automotive industry continues to evolve with technological advancements and an increasingly digital marketplace, VACC remains committed to collaborating with CAV, other regulatory bodies, and consumer groups to ensure that the industry operates fairly and transparently.

This collaboration is essential to addressing the complexities of the used vehicle market, particularly given the potential for consumer detriment in unregulated private sales.