Proposals for motor vehicle consignment sales reform 2020
Consultation status: CLOSED
Submissions closed at 5pm on 4 December 2020.
We are reviewing the regulation of consignment sales of vehicles under the Motor Vehicle Dealers Act 1973 (WA) and we want to hear from you.
In 2019 we conducted a review of legislation regulating motor vehicle dealers and repairers which identified vehicle consignment sales as an area of significant potential risk to consumers.
The consignment sale of a vehicle is where the owner engages a licensed motor vehicle dealer to sell their vehicle. The dealer undertakes the transaction on behalf of the owner and pays the proceeds of sale to the owner, less any agreed costs and commission. There are 985 licensed motor vehicle dealers in Western Australia, of which 138 were approved to sell vehicles on consignment.
For those who are time poor or don’t think they have the skills or confidence to negotiate the sale of their vehicle privately, selling on consignment through a licensed motor vehicle dealer is a viable option but comes with some risk. For example, some unscrupulous dealers may behave in a way that is designed to avoid transparency and to take advantage of vehicle owners who may not be aware of their rights. We have had several major cases of non-compliance with the laws recently which have resulted in significant financial losses to vehicle owners.
Current consultation phase
We encourage consumers and people involved WA’s motor vehicle industry to let us know their views about whether motor vehicle consignment sales should continue in its current form.
Key points of the consultation
The consultation paper identifies a number of options for reforming vehicle consignment sales, including:
- no change to existing vehicle consignment sales laws;
- strengthening existing motor vehicle dealer licensing provisions for consignment sales; or
- banning vehicle consignment sales, with the exception of vehicles sold at auction.
Your views are important
We encourage you to take the time to read the detailed public consultation discussion paper in full and share your thoughts with us. The paper contains questions for consideration that may help you prepare your feedback.
It's easy to have your say
Your input will help us make decisions about the regulation of vehicle consignment sales in Western Australia.
Complete a brief online survey
The motor vehicle consignment sales online survey closed on 4 December 2020.
Submit feedback in writing
You are welcome to:
- write a short email or letter outlining your views; or
- make a formal submission.
Submissions closed at 5pm, Friday 4 December 2020.
How your feedback will be used
Your feedback will help us understand your thoughts on vehicle consignment sales in Western Australia and will help us develop policy that may be put into law. Submissions will be treated as public documents, unless explicitly requested otherwise.
If you do not consent to your submission being treated as a public document, you should mark it as confidential, or specifically identify the confidential information, and include an explanation.
Please note, even if your submission is treated as confidential by Consumer Protection, it may still be disclosed in accordance with the requirements of the Freedom of Information Act 1992 (WA), or any other applicable written law.
Consumer Protection reserves the right to delete any content that could be regarded as racially vilifying, derogatory or defamatory to an individual or an organisation.
A summary of feedback will be released publicly after the consultation period has closed.
Downloads and resources
- Decision Regulatory Impact Statement: Review of the Motor Vehicle Dealers Act 1973 and the Motor Vehicle Repairers Act 2003 (final report) July 2019
- Motor vehicle industry review stage two consultation paper 2015
- Review of the Motor Vehicle Dealers Act 1973 and Motor Vehicle Repairers Act 2003 Consultation Discussion Paper
- Motor Vehicle Dealers Act 1973 (WA)
Enquiries can be made by calling Consumer Protection on 1300 304 054 or by email to firstname.lastname@example.org.
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