The Government of South Australia is introducing the strongest penalties in the nation under a crackdown on shonky used car sellers.
This week, a bill will be introduced to Parliament to massively increase the maximum penalty for winding back an odometer from $10,000 to $150,000 for a first or second offence and/or up to two years imprisonment for a third or subsequent offence.
The government proposal also increases the penalty for unlicensed selling from $100,000 to $150,000 for a first or second offence.
For third or subsequent offences potential jail time is doubled from one year to two years and the fine raised from $100,000 to $250,000.
For body corporates, the potential penalty would increase to $500,000.
In September, consultation on harsher penalties for odometer tampering and unlicensed dealing. was based on a proposal to raise the fine for odometer tampering to $30,000.
However, feedback received, including from the Motor Trade Association of South Australia (MTA) was that the penalty for odometer tampering needs to be even higher to act as an effective deterrent.
This is because the profits that can be made from winding back odometers and selling a vehicle for much more than it was purchased for can far exceed the proposed penalty.
As a result, South Australia will now lead the nation with the toughest penalties for odometer tampering. Penalties in other jurisdictions are significantly lower, ranging from $17,600 to $50,000.
This crackdown has been prompted by unlicensed selling and odometer tampering – detected through a rise in complaints as well as inspections by Consumer and Business Services – as cost-of-living pressures and difficulty acquiring new vehicles have seen more people purchasing second-hand vehicles.
Any person must have a licence if they buy, sell or offer for sale four or more vehicles in 12 months.
We are also seeing some licensed dealers intentionally selling under the guise of being a private seller to attempt to avoid their legal obligations such as providing a statutory warranty and disclosing whether a car was a repairable write off and that they are a licensed dealer.
All licensed dealers have the same legal obligations regardless of whether they are selling vehicles from a car-yard or their home.
We have also seen an uptick in complaints about unlicensed sellers 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 have also been caught winding back odometers.
Over the last financial year, six individuals were convicted of tampering with odometers, getting slugged a total of more than $35,000 in fines and compensation orders. Of those, four were unlicensed.
Anyone with concerns about a vehicle dealer - licensed or unlicensed – can contact Consumer and Business Services for advice and support on 131 882.
Odometer tampering penalties across Australia
Jurisdiction | Maximum Penalty |
$50,000 (individual or body corporate) | |
$46,154 and/or 2 years imprisonment (individual) $192,310 for body corporate | |
$8000 (individual) $40,500 (body corporate) | |
$30,960 or 2 years imprisonment (individual or body corporate) | |
$22,000 (individual or body corporate) | |
$17,600 (individual or body corporate) | |
$39,000 (individual) $195,000 (body corporate) | |
South Australia (proposed) | $150,000 for first or second offence $150,000 and/or two years imprisonment for a third or subsequent offence (individual or body corporate) |
Selling used cars without a licence penalties across Australia
Jurisdiction | Maximum Penalty |
$50,000 + daily penalty of $,1000 for each day or part day during which the offence continues (Individual or body corporate) | |
$19,231 per car bought, sold or exchanged, or offered to be bought, sold or exchanged. Court may also order a fine equal to 15 % of the sale price of each vehicle involved in the offence (Individual or body corporate) | |
$8,000 (individual) $40,500 (body corporate) | |
$61,920 or 2 years imprisonment (individual or body corporate) | |
Expiation of $5,500 or prosecution with penalty of up to $110,000. For second (or more) offence $110,000 and/or 12 months imprisonment (individual or body corporate) | |
$88,000 (individual or body corporate) | |
$39,000 and $3,900 for each vehicle bought, sold or exchanged by an individual $195,000 and $9,750 for each vehicle bought, sold or exchanged by a body corporate | |
South Australia (proposed) | $150,000 for first or second offence (individual) $250,000 and/or 2 years imprisonment for a third or subsequent offence (individual) $500,000 (body corporate) |
