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CHANGES TO THE MOTOR VEHICLE DEALERS (SALES) REGULATIONS 1974 (WA)

April 5, 2024April 5, 2024admin

ISSUE 20 – APRIL 2024


CHANGES TO MOTOR VEHICLE DEALERS (SALES) REGULATIONS 

On 7 June 2024, amendments to the Motor Vehicle Dealers (Sales) Regulations 1974
(the Regulations) will come into effect.

You can start preparing now.  Download a copy of the Regulations to read more on
the changes that will start on 7 June 2024 and how to use the new prescribed
forms and vehicle sale contract.  Until then, use the current forms.  

The Consumer Protection website will be updated to reflect the various
changes. An Industry Bulletin will be sent closer to 7 June 2024 so that dealers
know when the new forms are available to download from Consumer Protection’s
website.

The amendments are explained in more detail below: 


REPAIRABLE WRITE-OFF DISCLOSURE

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

As you know, Form 4 – Vehicle particulars contains important information about a
vehicle for prospective purchasers to know before deciding whether to buy a
vehicle. You must use the new Form 4 for every second hand vehicle, including
motor cycles, and complete the new ‘Yes/No’ tick box on Form 4 to indicate
whether the vehicle is: 

 * a repairable write-off (referenced above)
 * covered by a statutory warranty.

Form 4 will no longer include the explanation about the statutory warranty for a
used car or motor cycle. Instead, a dealer must give a purchaser a separate
information statement (refer Form 5A below) about the statutory warranty.

It will continue to be a requirement that all details on the Form 4 are
completed. Dealers should especially note that the details include the date of
sale and odometer reading at time of sale, which as occurs now, must be inserted
in the Form 4 when the vehicle is sold.


STATUTORY WARRANTY INFORMATION STATEMENTS

Before a dealer sells a second hand vehicle, the dealer must give the purchaser
an information statement regarding the existence and nature of the statutory
warranty under the Motor Vehicle Dealers Act 1973, if any, that applies to the
vehicle. The information statements will be contained in:

 * A new Form 5A – Information statement – statutory warranty for vehicles that
   are covered by the statutory warranty. The Form 5A must include the
   applicable illustration ‘The Used Car Warranty’ or ‘The Used Bike Warranty’.
 * An amended Form 6 – Information statement – no statutory warranty for
   vehicles that are not covered by a statutory warranty.

The use of Form 5 – Notice of defects excluded from warranty is largely
unchanged. Small changes have been made to delete the reference to a ‘Chassis
No’, refer to mileage as “kms/miles”, and an update to the Department’s web
address.


VEHICLE SALE CONTRACT

The vehicle sale contract sets out that a dealer may seek damages up to, but not
exceeding, 5% of the purchase price of the vehicle as damages for the
purchaser’s breach of the contract. This will not change.

Clause 8 of the vehicle sale contract has been amended to insert a new clause
which states that any amount sought by the dealer when the purchaser breaches
the contract must be a genuine estimate of the dealer’s loss.  From 7 June 2024
all vehicle sale contracts must include the amended clause 8.


WHY HAVE THESE CHANGES BEEN MADE?

Repairable write-off disclosure – Requiring dealers to disclose to prospective
buyers if a vehicle they are selling is listed on the written-off vehicle
register as a repairable write-off was a recommendation in the Department’s
review of the Motor Vehicle Dealers Act 1973 and the Motor Vehicle Repairers Act
2003.   Consumers will benefit as this additional disclosure will help make an
informed purchasing decision.

Changes to prescribed forms – Listing the vehicle particulars that must be
disclosed, and amending the prescribed forms, ensures the requirements reflect
current industry practice and makes clear the requirements that apply to the
sale of all second hand vehicles. 

Vehicle sale contract pre-estimated damages – Consumer Protection has continued
to receive complaints from consumers about dealers attempting to automatically
charge the maximum 5% pre-estimated damages without regard to the dealer’s
actual or anticipated loss.  This small change will protect consumers by making
it clear to all dealers of second hand vehicles that any amount claimed by a
dealer must be a genuine estimate of loss arising from the breach of
the contract.


FREQUENTLY ASKED QUESTIONS (FAQS)

The following FAQs are intended to provide dealers with practical guidance on
the use of the new forms.

What is the size of the Form 4?
The Form 4 must be printed, typed, or written in a clear and legible manner. The
Regulations no longer specify any minimum dimensions for Form 4.

How do I use the Form 4 if I sell a motor cycle?
The Motor Vehicle Dealers Act 1973 specifies that Form 4 should be attached to a
motor cycle in a way and place to ensure the details of the Form 4 are clearly
visible. The Form 4 has been streamlined so that it can be printed and attached
to a second hand motor cycle.

How and when should I give the information statement to the purchaser?
The information statement must be given to the purchaser before you sell the
vehicle.  The vehicle is considered sold once the purchaser and dealer have
signed the vehicle sale contract.  This means there is some flexibility for
dealers who may wish to combine the forms or provide the forms as a ‘packet’ of
documents to the purchaser.

The engine number is difficult to locate. Can I list the engine number based on
paperwork I obtained with the vehicle?
The engine number that must be disclosed in Form 4 is the engine number of the
engine currently in the vehicle, regardless of what might be recorded on any
registration forms or other paperwork obtained by the dealer.  If you choose to
rely on the engine number recorded on the vehicle’s paperwork, and that number
is incorrect because the engine has been replaced, you will have inserted a
false particular in the Form 4.

Where can I read the new Regulations?
The Regulations will be updated on the WA Legislation website on 7 June 2024.

Until then, you can read the copy of the Regulations that compares the current
law with the law that will apply from June 7, 2024.  The Motor Vehicle Dealers
(Sales) Amendment Regulations 2024 are also available on the WA Legislation
website and shows the changes that are being made to the Regulations.

If you have further questions or would like more information about these
changes, please contact Consumer Protection on 1300 30 40 54 or by email
at automotive@dmirs.wa.gov.au.


NEW DEPARTMENT OF TRAINING AND WORKFORCE DEVELOPMENT (DTWD) WEBSITE LOCATION

April 5, 2024April 5, 2024admin

From 5 April 2024, the Department of Training and Workforce Development has
relocated its website to http://wa.gov.au/dtwd .

Redirects are in place from the old to new website, but you may also like to
update your bookmarks and/or websites and other items with new links for the
following key content items.

• Apprenticeship Office: wa.gov.au/dtwd/apprenticeship-office

• Support and information for training providers and schools: wa.gov.au/dtwd/vet

• JSWA contracted providers: wa.gov.au/dtwd/vet-jswa

• Class A/B Register for apprenticeships and traineeships:
wa.gov.au/dtwd/classab

• Training product (curriculum) search: wa.gov.au/dtwd/tps

• WA nominal hours guides: wa.gov.au/dtwd/nhg

• State priority occupations list (SPOL): wa.gov.au/dtwd/spol

• Workforce development information: wa.gov.au/dtwd/workforce 

• Policy and legislation: wa.gov.au/dtwd/policy

• About the Department (includes corporate documents): wa.gov.au/dtwd/about-us

The Jobs and Skills WA website at jobsandskills.wa.gov.au remains in place, as a
one-stop-shop for training, career development and jobseeker support.

Should you have any queries about the website, please contact the Department
direct via http://wa.gov.au/dtwd or use their Enquiry Form


LATEST NEWS

 * Changes to the Motor Vehicle Dealers (Sales) Regulations 1974 (WA)
 * New Department of Training and Workforce Development (DTWD) Website Location


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