10 May 2024

Reminder for dealers about upcoming changes

From 7 June 2024, dealers must disclose whether a second hand vehicle they sell has been listed as a repairable write-off on the written-off vehicle register.

A previous bulletin provides further information about the changes to the Motor Vehicle Dealers (Sales) Regulations 1974. The prescribed forms and vehicle sale contract are changing.  Dealers should make sure they are familiar with the new requirements, including new prescribed forms.

Summary of changes – prescribed forms
The updated forms are now available to download on Consumer Protection’s website. All dealers must use the new forms from 7 June 2024.  The forms are:

Form 4 – Vehicle particulars

What has changed:
Form 4 is the form that must be used with any second hand vehicle, including a motor cycle, that is displayed for sale.  Dealers who sell vehicles and motor cycles must complete all the details on Form 4.  New details include:

• A Yes/No box indicating whether the statutory warranty under the Motor Vehicle Dealers Act applies to the vehicle.
• A Yes/No box indicating whether the vehicle has been recorded as a repairable write-off on any written-off vehicle register.

Minor changes have also been made to the wording on Form 4.  Form 4 no longer contains details about the statutory warranty. This information must be given to a purchaser as a separate form (outlined below).

Form 5 – Notice of defects excluded from warranty

What has changed:
Minor amendments to Form 5 have been made to:

• Delete the reference to a chassis number.
• Refer to mileage as “kms/miles”.
• Update the web address for the Department.

Form 5A – Information statement – statutory warranty (for vehicles, other than motor cycles), and Form 5A – Information statement – statutory warranty (for motor cycles)

What has changed:
Form 5A is a new form. It contains information about the statutory warranty that applies to a vehicle, including a motor cycle.  Two versions of Form 5A are available to download:

1. Form 5A for vehicles, other than motor cycles, has information about ‘The Used Car Warranty’.
2. Form 5A for motor cycles has information about ‘The Used Bike Warranty’.

The statutory warranty information was previously part of Form 4. If a statutory warranty applies to a vehicle, including a motor cycle, Form 5A must be given to the purchaser.

Form 6 – Information statement – no statutory warranty

What has changed:
Form 6 has been amended and is now an information statement that must be given to a purchaser if a vehicle, including a motor cycle, is not covered by the statutory warranty. Minor changes have also been made to the wording on Form 6.

Summary of changes – vehicle sale contract
The vehicle sale contract has changed.  Clause 8 of the vehicle sale contract has been amended to protect consumers and provide clarity for dealers by inserting a new clause which states that any amount sought by the dealer when the contract has been cancelled and the purchaser has breached the contract must be a genuine estimate of the dealer’s loss.

Pre-estimated damages are still limited to a maximum of 5%. From 7 June 2024 all vehicle sale contracts must include the amended clause 8.

Further information
The previous bulletin contains additional information and Frequently Asked Questions.   If you have any questions or would like more information about these changes, please contact Consumer Protection on 1300 30 40 54 or by email.