Lemon car reforms welcomed: Vic Government takes first step but more needed to tackle faulty second-hand car sales
Consumer Action Law Centre has welcomed proposed amendments to the Motor Car Traders Act 1986 introduced by the Victorian Government last week, but more is needed for purchasers of faulty second-hand ‘lemon’ cars.
“These reforms have been literally decades in the making. Lemon cars are a chronic, harmful problem impacting thousands of Victorians, putting lives at risk and clogging up our Tribunal system,” Consumer Action Law Centre CEO, Stephanie Tonkin said.
“People need cars to get to work, go to school, fulfill their caring duties and in some sad cases, as shelter. Buying a car is one of the biggest financial decisions many people make and when it turns out to be faulty, clients of ours have lost their jobs, they’ve lost money and they’ve lost safety.”
Consumer Action welcomes the Government’s decision to empower the Victorian Civil and Administrative Tribunal (VCAT) to refer traders to the Business Licensing Authority for licensing consequences if a decision is made against them.
“This is a key reform and lever that should deter more dodgy traders from breaching the law, dragging out disputes or failing to provide adequate remedies required by our consumer laws.
“Increasing the consequences for dealerships and licensed motor car traders who exploit consumers is long-overdue, but there is opportunity for Government to increase penalties for breaches of statutory warranties and consumer guarantee laws that we hear about every week.” Ms Tonkin said.
Consumer Action also welcomes the proposed amendments to the statutory warranty criteria, that should add flexibility into the scope and availability of these warranties, to help more Victorians access redress for a faulty second-hand car.
“The Victorian Government must use that regulatory authority to meaningfully expand statutory warranties related to time, distance and odometer reading limits to provide more comprehensive consumer protections for people buying second-hand cards.”
While these are welcome changes that will give more consumers the protections they deserve, more must be done to ensure Victorians have a timely, simple and effective mechanism to get a lemon car fixed, replaced or get their money back. Currently, Victorians must wait over a year to have their rights enforced through VCAT if they’ve been sold a faulty second-hand car.
“Dodgy dealerships are aware of the long waitlist at VCAT and it perversely encourages them to drag out disputes that cause ongoing harm and distress to Victorians – many of whom just give up,” Ms Tonkin said.
“The Victorian Government must pursue urgent reform that enables consumers a timely and accessible path to justice and gives dodgy traders pause before they sell a faulty second-hand car.”
More must also be done to stamp out the sale of dodgy cars to First Nations communities who are disproportionately seeking legal support after the fact. Shelley Hartle, First Nations Project & Policy Manager says “…we invite government to join us through our No More Gammin Cars project, in co-designing meaningful systemic and regulatory reforms with First Nations Victorians, regulators and other identified stakeholders.
ENDS
Media contact: Mark Pearce, mark@consumeraction.org.au Tel: 0413 299 567
