$10,000 fine for unlicensed car dealer (Faizan Afzal)

A Bentley man who sold 27 cars in one year when he didn’t have a motor vehicle dealer’s licence has been fined $10,000 and ordered to pay $425 in costs by the Perth Magistrates Court.

Faizan Afzal bought the vehicles between February 2011 and March 2012 either through individual private sales or an auction house. He then placed 191 adverts on the online classifieds website Gumtree.

Commissioner for Consumer Protection Anne Driscoll described it as a clear breach of the law.

“Under the Motor Vehicle Dealers Act anyone buying and selling cars in a business capacity must hold a licence. Mr Afzal sold many cars and made a significant profit in the process, so he was clearly carrying on a business,” she said.

Ms Driscoll explained that the licensing system exists to protect car buyers.

“In order to obtain a car dealers licence, operators must prove themselves to be fit and proper to trade within the motor vehicle industry.

“Backyard dealers have not passed these checks and consumers should be very mindful of this. Once a car is paid for and driven away, it may turn out to be un-roadworthy; putting the driver and any passengers at risk. There is no warranty either.”

Western Australians considering buying a car should look at the Consumer Protection website: www.commerce.wa.gov.au/motorvehicles first for guidance and information.

Illegal car dealing in WA can be reported to Consumer Protection by calling 1300 30 40 54 or emailing: consumer@commerce.wa.gov.au.


(Consumer Protection is a division of the Department of Commerce)

Follow us on Twitter: @ConsumerWA or like our Facebook page – www.facebook.com/ConsumerProtectionWesternAustralia

Media Contact: Alina Cavanagh  9282 0679 or 0423-846397  alina.cavanagh@commerce.wa.gov.au

Consumer Protection
Media release
12 Mar 2013

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