Tougher penalties for shonky used car dealings are being put to South Australia's parliament.
For the first time, any dealer convicted for winding back an odometer will face imprisonment for up to two years or a tripled fine of up to $30,000 (up from $10,000).
For unlicensed dealing, the potential jail time is being doubled for third or subsequent offences from one year to two years in prison and the fine raised from $100,000 to $250,000. The fine will increase from $100,000 to $150,000 for a first or second offence. For body corporates, it would increase to $500,000.
In the last financial year, inspectors from Consumer and Business Services inspected nearly 170 used car dealers operating both from home and in car yards and there has been some concerning trends emerge.
We have seen an increase in licensed dealers intentionally selling under the guise of being a private seller to avoid their legal obligations such as providing a statutory warranty and failing to disclose whether a car was a repairable write off and that they are a licensed dealer.
Second-hand vehicle dealers must have a licence if they buy, sell or offer to do either in relation to four or more vehicles in 12 months.
We have also seen an uptick in complaints about unlicensed dealers selling from home via sites such as Facebook Marketplace and engaging in dodgy practices including selling with false papers and winding back the odometer to make it seem like the car has travelled fewer kilometres.
Licensed dealers operating both from home and in car yards have also been caught winding back odometers.
Over the last financial year, six individuals were convicted of tampering with odometers, being slugged more than $35,000 in fines and compensation orders. Of those, four were unlicensed.
Over the coming year, Consumer and Business Services will be cracking down on dodgy operators in the second-hand vehicle industry to stamp out those shonky dealers who do the wrong thing and we encourage people to report any vehicle dealer – licensed or unlicensed – who they suspect of dodgy behaviour.
Consumers are advised when buying privately to exercise caution by getting the car inspected, check the odometer reading to see if the wear and tear on the car is consistent with its supposed usage and visit the personal properties securities register to check the car hasn't been stolen, flood damaged or written off.
