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When there is a disaster such as a fire, flood, storm or earthquake a vehicle can suffer various degrees of damage.
If you are in the market for a second-hand vehicle you should be aware of the different obligations motor vehicle dealers, insurance companies and private sellers have to comply with before they sell a damaged vehicle.
Damaged motor vehicles may fall under two categories:
A statutory write-off is too badly damaged to be repaired to a standard that is safe for road use. The vehicle identification number (VIN) or chassis number is recorded as a statutory write-off, and the vehicle is not allowed to be registered. These vehicles are only suitable for use as parts or scrap metal.
In the case of water damage, a statutory write-off would include a:
A repairable write-off has been assessed as uneconomical to repair. The vehicle identification number (VIN) or chassis number is recorded as a repairable write-off and the vehicle will only be registered if it:
A repairable write-off may include a:
The Department of Transport maintains a register of written off motor vehicles. It has details of vehicles under 15 years old that have been classified as written off. A written-off vehicle certificate provides information on the status of a written-off vehicle. It will detail the date of the write-off and the reason (for example, impact, fire or water damage).
While there is no legal obligation for a dealer to disclose the history of a motor vehicle (unless specifically asked), it is an offence under the Australian Consumer Law for the vehicle to be misrepresented.
Consequently, a dealer cannot misrepresent the vehicle in any advertising or during the negotiation process.
It is therefore imperative for the buyer to ask the dealer about the history of the vehicle, and specifically, if it has been a write-off.
The majority of Auctioneers will advise if a vehicle is a repairable write off or statutory write off prior to the vehicle being auctioned.
If you buy a damaged vehicle privately, we strongly recommend you have it checked by a qualified mechanic. If you undertake your own checks, you should check for the following:
You should also undertake a Personal Properties Securities Register (PPSR) check. This will let you know if the vehicle has been written off, stolen or has money owing on it. You will need to have the vehicle identification number (VIN) to perform the search.
The Department of Transport has set up three main safeguards to help consumers and businesses protect themselves against purchasing vehicles that have been written off. These safeguards are:
Organisations that work with written-off vehicles are required to notify the Department of Transport when a vehicle is written off or dismantled for parts.
The written-off vehicle register captures information about written-off vehicles that are 15 years old or less, including:
The majority of information supplied to the written-off vehicle register will come from insurance companies. If you fall in to one of the categories below you will need to become a written-off vehicle notifier:
Individuals who are self-insured (this includes businesses) are required by law to notify the Department of Transport if their vehicle is written off or is being dismantled and this hasn’t been notified to the Department of Transport by an insurance assessor.
Individuals and businesses that don’t normally handle written-off vehicles, but take possession of a vehicle that isn’t recorded on the register, will need to inform the Department of Transport. To do this, you must complete and lodge the relevant form with the Department of Transport. This will cancel the vehicle’s registration.
If the vehicle is a repairable write-off and the owner wants to have it registered, a written-off vehicle inspection must be undertaken.
Fact sheet provides the above tips and advice about storm and flood damaged vehicles.