The Government of South Australia’s bill introducing the strongest penalties in the nation for shonky used car sellers has passed the South Australian Parliament.
The bill massively increases the maximum penalty for winding back an odometer from $10,000 to $150,000 for a first or second offence and/or up to two years imprisonment for a third or subsequent offence.
We are also increasing the penalty for unlicensed dealing from $100,000 to $150,000 for a first or second offence.
And we are doubling the potential jail time for third or subsequent offences from one year to two years in prison and raising the fine from $100,000 to $250,000.
For body corporates, it would increase to $500,000.
South Australia will lead the nation with the toughest penalties for odometer tampering. Penalties in other jurisdictions are significantly lower, ranging from $17,600 to $50,000.
The government’s crackdown has been prompted by a rise in complaints about unlicensed selling and odometer tampering to Consumer and Business Services as cost-of-living pressures and difficulty acquiring new vehicles have seen more people purchasing second-hand vehicles.
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 car-yard 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 such as providing a statutory warranty and disclosing whether a car was a repairable write off.
We have also seen an uptick in complaints about unlicensed sellers selling from 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.
Over the last financial year, a total of six individuals were convicted of tampering with odometers, getting slugged a total of more than $35,000 in fines and compensation orders. Of those, four were unlicensed.
Anyone with concerns about a vehicle dealer - licensed or unlicensed – can contact Consumer and Business Services for advice and support on 131 882.
Odometer tampering penalties across Australia
Jurisdiction | Maximum Penalty |
$50,000 (individual or body corporate) | |
$46,154 and/or 2 years imprisonment (individual) $192,310 for body corporate | |
$8000 (individual) $40,500 (body corporate) | |
$30,960 or 2 years imprisonment (individual or body corporate) | |
$22,000 (individual or body corporate) | |
$17,600 (individual or body corporate) | |
$39,000 (individual) $195,000 (body corporate) | |
South Australia | $150,000 for first or second offence $150,000 and/or two years imprisonment for a third or subsequent offence (individual or body corporate) |
Selling used cars without a licence penalties across Australia
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Jurisdiction | Maximum Penalty |
$50,000 + daily penalty of $,1000 for each day or part day during which the offence continues (Individual or body corporate) | |
$19,231 per car bought, sold or exchanged, or offered to be bought, sold or exchanged. Court may also order a fine equal to 15 % of the sale price of each vehicle involved in the offence (Individual or body corporate) | |
$8,000 (individual) $40,500 (body corporate) | |
$61,920 or 2 years imprisonment (individual or body corporate) | |
Expiation of $5,500 or prosecution with penalty of up to $110,000. For second (or more) offence $110,000 and/or 12 months imprisonment (individual or body corporate) | |
$88,000 (individual or body corporate) | |
$39,000 and $3,900 for each vehicle bought, sold or exchanged by an individual $195,000 and $9,750 for each vehicle bought, sold or exchanged by a body corporate | |
South Australia | $150,000 for first or second offence (individual) $250,000 and/or 2 years imprisonment for a third or subsequent offence (individual) $500,000 (body corporate) |
We will have the strongest penalties in Australia for second-hand car dealers who do the wrong thing.
For the first time, anyone caught winding back an odometer will face jail time or a fine of up to $150,000 along with longer sentences and higher fines for unlicensed dealing.
As cost-of-living pressures continue to bite, more people are buying second-hand vehicles and I want to make sure that no one is taken advantage of.
Motor Trade Association SA Chief Executive Darrell Jacobs said, "We applaud the South Australian Government for adopting harsher penalties for unlicensed dealing and odometer tampering by increasing fines and longer jail terms."
"This regulatory reform actively targets “dodgy sellers” who prey on those who can least afford it and reinforces the value of using licensed dealerships where motorists have consumer protection and warranties."
RAA Mobility Expert Mark Borlace said, "RAA welcomes these tougher penalties for dealers and unlicensed dealers who are trying to rip off South Australian car buyers."
"At a time when rising cost-of-living is hitting households, the last thing they need is to be exposed to dodgy practices that could cost them thousands of dollars in future repairs.
"The odometer is a vital tool to help prospective buyers gauge how much life is left in a used car, so tampering with it should attract a severe penalty.
"We thank the state government for its collaboration with all groups that are affected by these changes to deliver a fair outcome for consumers."
