The Motor Vehicle Dealers Act imposes serious obligations on licensed dealers, yard managers and salespersons and the way they operate their business. Failing to meet those obligations can result in the Department prosecuting offending licence holders before a Court, or initiating disciplinary action against them in the State Administrative Tribunal, or giving them an infringement notice.
Maximum penalties can range from fines as high as $50,000, infringements as high as $500, and the State Administrative Tribunal has the power to take a licence holder's licence away from them. The offences most commonly detected by the Department are listed below. This is not an exhaustive list, and licence holders should read it in context with the full provisions of the Motor Vehicle Dealers Act and relevant Regulations.
21. Dealer's premises and advertisements to bear name and number
A dealer must include the business name and dealer's licence number:
On a sign of reasonable dimensions at every authorised premises, and,
In every advertisement published by him or on his behalf.
Penalty: $1 500.
27. Inspection of second-hand vehicles
Except in certain circumstances, dealers must keep their second-hand, trade owned vehicles at their authorised premises.
Penalty: $5 000.
31A and 31B. Yard managers to be licensed
A person cannot work for a dealer as a Yard Manager or a Salesperson, unless he or she holds a Yard Managers or Salespersons licence, or an Interim Authorisation.
Penalty: $5 000 and a daily penalty of $100.
31C. Unlicensed person not to be employed
A dealer cannot employ or engage an unlicensed Yard Manager or Salesperson.
Penalty: $5 000 and a daily penalty of $100.
Division 2, Sales on consignment
The obligations on dealers selling vehicles on consignment are extensive. Any dealer doing so should be conversant with the whole of Division 2 of the Motor Vehicle Dealers Act, and Part 3 - Trust Accounts in the Motor Vehicle Dealers (Sales) Regulations 1974.
Maximum penalties of up to $5 000 apply to offences under these provisions.
32B and 42A. Agreements for sale of vehicles by dealer
A dealer cannot sell a vehicle, unless the contract or agreement for the sale of that vehicle is in writing, signed by all parties, and includes the prescribed particulars, terms and conditions.
Penalty: $5 000.
45. Odometer tampering
It is an offence for any person to willfully and with intent to deceive another person, alter, cause to be altered, or connive in the alteration of the reading of an odometer on the vehicle.
Penalty $50 000.
Where a dealer advertises a second-hand vehicle for sale, the advertisement must contain;
Penalty $2 000.
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Motor Vehicle Dealers Act 1973 TABLE of DESCRIPTIONS of OFFENCES |
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| Section | Description of Offence | Penalty |
| 20G(3) | Failing to display the 'Certificate of Authorised Premises' in a conspicuous position at the premises to which the certificate applies. | $150 |
| 21(a) | Failing to cause the business name and licence number to appear on a sign of reasonable dimensions at every premises. | $150 |
| 21(b) | Failing to cause the business name and licence number to appear in every advertisement published by him or on his behalf. | $150 |
| 21C(3) | Failing to display a ‘certificate for car market operators premise’ in a conspicuous position at the premises to which the certificate applies. | $150 |
| 21D | Failing to cause the business name and licence number to appear on a sign of reasonable size at every premises, and/or in every advertisement published by the operator or on his behalf. | $150 |
| 23(1) | Failing to notify the Commissioner of a change in the membership of a licensed firm. | $200 |
| 23(2) | Failing to notify the Commissioner of a change in the membership of a licensed body coprporate. | $200 |
| 24(3) | Being a licensed salesperson or yard manger, failing to notify the Commissioner of a change in residential address. | $150 |
| 25 (1) | Failing to have a register in the prescribed form at every authorised premises. | $500 |
| 25(2e) | Making, or causing to be made, a false entry, in the register kept by a licence holder. | $100 |
| 26(1) | Failing to immediately notify the licensing authority of the acquisition or sale of a second-hand vehicle, and if the vehicle is not licensed in WA, fail to forthwith return the number plates. | $200 |
| 26(2) | Failing to return the number plates of a second-hand vehicle where the licence has expired or is cancelled. | $200 |
| 27(3) | Keeping a second-hand vehicle elsewhere than at the premises. | $500 |
| 28(10) | Failing to comply with an order to remedy defects or surrender number plates. | $200 |
| 28(11) | Removing, damaging or obliterating a remedy notice attached to a vehicle. | $200 |
| 30(2) | Carry on business at premises that was not in accordance with an authorisation or permit. | $500 |
| 31D(2) | Carrying on business at a premise that is not an authorised premise. | $500 |
| 33(1) | Offering for sale a second-hand vehicle without a notice in the prescribed form attached. | $200 |
| 33(4) | Inserting, or allowing to be inserted, a false or misleading statement, in a material particular. | $500 |
| 33(7) | Failing to complete and maintain required notices (e.g. Form 4, Form 6, etc) | $100 |
| 40B(1) | Being a licensed car market operator, allowing a vehicle to be displayed for sale without the required notice attached. | $200 |
| 41(1) | Carrying out, or giving effect to, an undesirable practice (as specified in Schedule 2 of the Motor Vehicle Dealers (Sales) Regulations). | $200 |
| 43(1) | Failing to provide a purchaser with a written note stating the monetary value of the item used as a trade-in. | $100 |
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Motor Vehicle Dealers (Sales) Regulations 1974 |
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| 14 | Causing an advertisement to be published which fails to conform to regulatory advertising requirements. | $200 |
Licensed dealers must use certain forms as set out in the Regulations.
A dealer's register (Form 1) must be maintained at each authorised premises of the dealership. The register records details of every transaction that the dealer conducts, identifying the vehicle, the seller and the car buyer and the name of the person who makes the entry in the register. Alternatively, dealers can use an electronic register which must comply with Regulation 4A of the Motor Vehicle Dealers (Sales) Regulations. The register must be kept in its entirety for the duration of the dealer's licence. This form advises car buyers that the vehicle is covered by a statutory warranty and describes certain particulars about the vehicle. Different Form 4's are to be displayed for used cars and used motorcycles. The following links provide you with copies of the Form 4 for used cars and the Form 4 for used motorcycles. A dealer must display a "Vehicle Particulars" form on any second-hand vehicles being offered or displayed for sale in the windscreen of a vehicle, or attached to a motorcycle. A copy of the form, signed by the purchaser, must be retained for two years after the sale of a vehicle. Form 5 is to be displayed next to form 4 in the windscreen of a vehicle, or attached to a motorcycle, and may used by the dealer to notify a buyer of an existing defect, in the event that the dealer proposes to exclude the defect from warranty and/or to advise the buyer of an estimated repair cost. The dealer's estimate of repair cost must not be understated because the dealer will be liable to compensate the purchaser for any shortfall. The dealer is still responsible for any other warrantable defects not listed on Form 5. Form 6 advises the vehicle or motorcycle is not covered by a statutory warranty and describes certain particulars about the vehicle. This form is to be displayed in the windscreen of a vehicle, or attached to a motorcycle. A copy of the form, signed by the purchaser, must be retained for two years after the sale of a vehicle.
Form 1 - Dealer's Register
Form 4 - Vehicle Particulars and Warranty
Form 5 - Notice of excluded defects
Form 6 - Vehicle Not Provided with Warranty
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