New laws commenced on 29 November 2010 which will change the way second-hand vehicle dealers do business with South Australian consumers.
The Second-hand Vehicle Dealers (Cooling-off Rights) Amendment Act 2009 amends the Second-hand Vehicle Dealers Act 1995.
To read more about cooling off rights, click here.
Key features of the legislation are the introduction of a negative licensing scheme for salespersons, changes to the definition of dealers, addition of airbags to a dealer’s statutory duty to repair and changes to forms.
Negative Licensing
Dealers must check that there are no disqualifying factors (such as criminal convictions) for the salespeople they employ.
A person must not act or be employed by a dealer as a salesperson if he or she:
- has been convicted of an indictable offence of dishonesty; or
- has been convicted of a summary offence of dishonesty during the last 10 years; or
- is suspended or disqualified from practising or carrying on an occupation, trade or business under a law of a State or Territory or Commonwealth.
It is an offence for both the dealer and the salesperson.
The prohibition of employing or acting as a salesperson will not apply to a salesperson already employed or acting before 29 November 2010 unless the salesperson is convicted, disqualified or suspended after that date.
A salesperson may be subject to disciplinary action if they have acted unlawfully, improperly, negligently or unfairly.
Changes to backyard selling
From November 29, 2010 a person will be presumed to be a dealer if he or she buys or offers to buy or sells or offers for sale, at least 4 second-hand vehicles during a period of 12 months (unless they can demonstrate the vehicles were bought or sold for private purposes).
Under the changes to the law, a person and a close associate are presumed to be dealers, if between them, they buy or offer to buy or sell or offer for sale, six or more second-hand vehicles during a 12 month period (unless they can demonstrate the vehicles were bought or sold for private purposes).
If a vehicle’s registration is transferred from one person to another, it is presumed that the vehicle was sold, unless it can be proved to the contrary.
Duty to repair
According to the law, a dealer has a statutory duty to repair defects present in the vehicle or that appear in the vehicle after the sale. Though some accessories are exempt from this requirement, airbags (supplementary restraint systems) are no longer exempt.
Forms
There are minor changes to all currently existing Forms. Click here to see amended forms.
There is a new form for purchasers to waive their cooling off rights. This form must be witnessed by a person other than the dealer or a salesperson involved in any way in the sale.
There are four new Commissioner approved forms.
- Legal title to vehicle during cooling-off period (PDF, 32KB)
- Details of Condition of Trade-in Vehicle (PDF, 26KB)
- Rescission of contract by Dealer (PDF, 26KB)
- Option to purchase vehicle subject to contract for sale (PDF, 30KB)
ALL CHANGES COMMENCED ON 29 NOVEMBER 2010
A video is available which outlines the new obligations and responsibilities of second-hand vehicle dealers.
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