Consumer Affairs Victoria is pursuing legal action to protect consumers from car sellers who break the law.
It’s currently targeting licensed and unlicensed sellers whose conduct has undermined consumers’ rights when buying a used car.
Two companies operating car businesses in Dandenong and Cranbourne were recently suspended from trading. They had failed to deliver cars to customers, to pay or transfer stamp duty, and to return deposits on cancelled contracts.
More than 200 customers have so far claimed over $330,000 from the Motor Car Traders Guarantee Fund, after losing money dealing with CMG Automotive and CHM Motors. The fund compensates Victorians who suffer financial loss as the result of dealing with a licensed car business that breaks the law.
Consumer Affairs is now asking VCAT to permanently cancel CMG Automotive’s licence.
In a separate case, unlicensed car trader Zequn Wang, was recently convicted and fined $25,000. Wang bought or sold 84 cars between January 2022 and September 2023. This is far greater than the four cars per year limit you can trade without a licence.
The Office of Public Prosecutions has now launched an appeal on Consumer Affairs’ behalf to the County Court, believing the sentence handed down was inadequate.
In Victoria, unlicensed traders face maximum penalties of up to $19,000, or 15% of the sale price, for each car they buy, sell or exchange.
Buying a used car? Things you need to know
Consumer Affairs also provides information and advice so Victorians can make informed choices when buying a car.
For many people, it’s one of the biggest purchases they’ll make. Understanding your rights can help you to be happy on the road.
A new campaign will promote the laws that protect you when you’re buying a second-hand car. Demand for used cars rose 12% nationally last year.
Buying from a licensed trader provides a cooling-off period, clear title and warranty. Combined with having access to compensation from the Motor Car Traders Guarantee Fund if things go wrong, these are strong protections not available if you buy from an unlicensed seller.
Learn more about buying a used car safely and follow Consumer Affairs Victoria on Instagram.