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Work & Business Licenses
Media releases
21 June 2017

An unlicensed car dealer from the northern suburbs has been convicted and ordered to pay more than $5,000, following prosecution by Consumer and Business Services (CBS).

Mr Nsimba Paul Paiva pleaded guilty in the Elizabeth Magistrates Court to carrying on business as a second-hand vehicle dealer without holding a licence.

Commissioner for Consumer Affairs, Dini Soulio, said Paiva was the subject of investigations by CBS after South Australia Police advised he was offering vehicles for sale on the roadside and queried whether he had breached the Second-hand Vehicle Dealer Act 1995.

“The Act states that if a person buys or offers to buy - or sells or offers for sale - at least four second-hand vehicles within a 12-month period, the person will be presumed to be a dealer,” he said.

“Records indicated that between 15 May 2015 and 21 April 2016, Paiva transferred seven second-hand vehicles into other people’s names.”

While Pavia held a licence between 2006 and 2009, he did not hold a licence during the time of the offending.

Mr Soulio welcomed the penalty against Paiva.

“At the time Pavia held his licence, he entered into an assurance that he would stop selling second-hand vehicles without displaying a notice stating he was a registered dealer,” he said.

“This, coupled with the fact he previously held a licence, indicates to me he should have been well aware of the law and the responsibilities to be licensed as a dealer.

“Buying a used car from an unlicensed dealer can be fraught with risks—there is no cooling-off period, no warranty and no guarantee that the car is free of problems.

“Vehicles are an expensive purchase and we want to ensure both consumers and licensed dealers are protected. We don’t want to see the actions of dishonest dealers tarnish the reputation of the second-hand vehicle sales industry.

“We want to ensure we are getting the message out to those in the community that there are laws in place limiting the amount of cars that can be sold by somebody who does not hold the appropriate licence.”

If any consumers have concerns about a second-hand vehicle, they can find out more at www.cbs.sa.gov.au or contact CBS on 131 882.