Motor vehicle consignment sales law reforms - Motor vehicle industry bulletin 12
4 May 2022
Motor vehicle consignment sales law reforms
The Department of Energy, Mines, Industry Regulation and Safety has completed a review of motor vehicle dealers’ laws which apply to the sale of vehicles on consignment.
Why is the review necessary?
The review started in October 2020 with the public release of a consultation paper in the form of a Consultation Regulatory Impact Statement (CRIS).
The review was necessary due to several consignment sale events where consumers suffered serious financial harm and losses.
The review’s findings
The review examined the need for further regulatory intervention, including the possibility of banning consignment sales.
The review discovered a significant section of the motor vehicle industry relies on consignment selling. As such, it was found necessary to keep this method of selling, but there is a need for a number of regulatory reforms to improve consumer protection.
The Decision Regulatory Impact Statement (DRIS) is the third and final stage of the review. The DRIS recommends some key reforms including strengthening existing licensing eligibility provisions and updating motor vehicle dealer training on dealer obligations when selling vehicles on consignment. The Minister accepts the recommendations.
What happens next?
We will seek the Government’s approval to draft the changes to the law. Parliament will need to review and approve of these changes so they can become the new law.
What does this mean for me?
Motor vehicle dealers who are currently authorised to sell vehicles on consignment can continue to operate as normal and will not need to do additional training.
General information about the current requirements, including trust accounts, is available on our consignment selling of vehicles page.