The Government of South Australia is launching a new campaign to warn people about the dangers of buying second-hand cars from unlicensed sellers.
The campaign reminds people of the potential dangers of buying a second-hand car from an unlicensed seller and is being supported by the Motor Trade Association.
New advertisements will run across social media reminding people to do their due diligence when buying a second-hand car and to know their rights.
When buying a car from a licensed dealer, consumers have added protections including a statutory warranty in most cases, consumer guarantees and a requirement for any defects such as being a repairable write off to be disclosed.
However, these protections don’t exist in a private sale. If consumers are going to buy from an unlicensed dealer, the campaign encourages people to have a mechanic inspect the car and to check the Federal Government’s Personal Properties Securities Register to check if money is owed on it.
The campaign comes in the wake of the state government introducing the harshest penalties in the nation for unlicensed dealing and odometer tampering with fines of up to $500,000 for selling without a license and $150,000 for odometer tampering as well as jail time.
Cost-of-living pressures and difficulty acquiring new vehicles have seen more people purchasing second-hand vehicles and as a result, there has been an increase in complaints to the state’s consumer watchdog Consumer and Business Services (CBS) about dodgy dealers.
Any person must have a licence if they buy, sell or offer for sale four or more vehicles in 12 months.
All licensed dealers have the same legal obligations regardless of whether they are selling vehicles from a caryard or their home.
And yet, we have seen licensed dealers intentionally selling from home under the guise of being a private seller to attempt to avoid their legal obligations.
We have also seen a rise in complaints about unlicensed sellers selling via sites such as Facebook Marketplace and engaging in dodgy practices including selling with false papers and winding back the odometer to make it seem like the car has travelled fewer kilometres.
Licensed dealers have also been caught winding back odometers.
Anyone with concerns about a licensed vehicle dealer or unlicensed seller can contact Consumer and Business Services for advice and support on 131 882.
Campaign assets can be viewed here:
- Buying a used car? Avoid hidden damage - https://youtu.be/OlODrB8_r5I
- Buying a used car? Know your rights - https://youtu.be/ZzFXaTjLxqo.
Read more on the CBS website about responsibilities selling cars.
