Andrea Michaels MP
Minister for Consumer and Business Affairs
South Australia will soon have the toughest penalties in the nation for dodgy car dealers caught winding back odometers and selling cars without a license.
Car dealers should be on notice that Consumer and Business Services will be cracking down on those doing the wrong thing, with a campaign launching this week to ensure sellers understand their obligations and the increased penalties they will be hit with for non-compliance.
From 1 July, the maximum penalty for winding back an odometer will increase 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.
The penalty for unlicensed dealing will also rise from $100,000 to $150,000 for a first or second offence.
And the potential jail time for third or subsequent offences will double from one year to two years in prison. The fine will increase from $100,000 to $250,000 for an individual and $500,000 for a body corporate.
The tougher penalties have been sparked by an uptick in complaints about unlicensed selling and odometer tampering as cost-of-living pressures and difficulty acquiring new vehicles have seen more people purchasing second-hand.
You must have a licence if you 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.
The government is aware of 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 or disclosing whether a car was a repairable write off.
We have also seen an uptick in complaints about unlicensed sellers selling from 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.
To report a dodgy car dealer, consumers can contact Consumer and Business Services for advice and support on 131 882.
Quotes
Attributable to Andrea Michaels
South Australia will have the toughest penalties in the nation for dodgy second-hand car dealers from July 1.
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.
Purchasing a car is a significant investment and we don’t want to see people being ripped off or taken advantage of by being sold a lemon.
Attributable to Motor Trade Association SA/NT Chief Executive Darrell Jacobs
Time is ticking for odometer frauds. Your number is up.
Industry and government have our eyes on dodgy vehicle sellers. We will find you and you will face the nation’s toughest fines.
We thank Minister Michaels and the Malinauskas Labor Government for hearing the MTA’s calls to crack down on dodgy vehicle sellers.
