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Car owners are being urged to be aware of their rights and car dealers to be aware of their obligations when selling vehicles by consignment.
Following a Consumer Protection investigation, charges have been laid against Perth motor vehicle dealer Luxuride Pty Ltd, trading as Luxuride of West Perth, and its Director Nicolas Ngo for allegedly failing to comply with laws relating to selling vehicles on consignment and for allegedly making false or misleading representations to the owners of the vehicles.
The company and its Director have been charged with breaching the Motor Vehicle Dealers Act by:
It’s further alleged the Australian Consumer Law was also breached when false or misleading representations were made to vehicle owners regarding the sale price, enabling the dealership to gain a higher profit.
Commissioner for Consumer Protection David Hillyard said the laws surrounding consignment sales are designed to protect the owner of the vehicle and ensure the process is totally transparent.
“By not being directly involved in the sale of their vehicle, owners who agree to consignment deals need to be sure that they know exactly how much they will be getting from the sale,” Mr Hillyard said.
“Verbal agreements can lead to confusion, which is why the law requires any agreement to be in writing. And if the agreed sale amount changes over time, the written agreement needs to be amended.
“The law requires the agreement to clearly set out how much will go to the owner and the proportion that will be retained by the dealer as a commission, to prevent a dispute arising after the sale.”
Under the Act, motor vehicle dealers must adhere to the following conditions that apply to consignment sales:
For more information regarding the laws covering the selling of vehicles on consignment, go to the Consumer Protection website www.consumerprotection.wa.gov.au or enquiries can be made by email email@example.com or by calling 1300 30 40 54.
Media Contact: Alan Hynd, (08) 6552 9248 / 0429 078 791 / firstname.lastname@example.org