Archives: Dealer Bulletins

The AADA has received correspondence from the Victorian Department of Government Services’ (DGS) Deputy Secretary of the Consumer Affairs and Local Government to advise that the Victorian Government has announced its response to the Independent Review of the Victorian Public Service: Final Report (the Silver Review).

Of importance to Victorian Licensed Motor Car Traders (LMCT) is the response from the Victorian Government that has accepted a recommendation made in the Silver Review that may impact future LMCT – Regulator interaction. The change may well also impact on future legislative reform options that the Victorian Government may pursue in the yet to be released modernisation review of the Motor Car Traders Act 1986 (Vic) (the Act) planned for some time in 2026.

What is the key recommendation in the Silver Review that will impact LMCTs?

Dealers are advised that the Victorian Government has agreed to transfer the functions of the Motor Car Traders Claims Committee (MCTCC) away from the Department of Justice and Community Services (DJCS) to the DGS.

The transfer of the administrative responsibility remains subject to legislative amendment.

How has AADA responded to DGS on behalf of our Victorian members?

AADA has acknowledged the Victorian Government’s decision to transfer the functions of the MCTCC to the DGS. Our dealer members value the role of the MCTCC, the integrity of the Motor Car Traders Guarantee Fund (the Fund), and the importance of fair treatment for LMCT and consumers. The Fund is made up exclusively of annual renewal fees of LMCT licences or monies received by the department as payment for penalty attributed to a LMCT for a breach of the Act or Motor Car Traders Regulations 2018 (Vic). In the financial year 2024-25 those LMCT derived funds totalled $4.98 million. Dealers take seriously the threat to their licence when a consumer claim is made upon the Fund.

AADA has also reminded the Deputy Secretary that access to justice for both consumer and LMCT must remain on any claim. Further, AADA has requested that consultation must take place between themselves and relevant industry bodies such as the AADA and VACC if there are to be any future legislative reforms on consumer claims and the function(s) of the MCTCC as they currently apply to Part 5, Divisions 1-3 of the Act.

Why should LMCTs be alert to the transfer from DJCS to DGS ?

Whilst the transfer as described is intended to be an administrative change, the Deputy Secretary also advised AADA that the DGS is committed to ensuring that consumers will continue to be protected by the Fund when buying from a LMCT, and that compensation claims continue to be assessed fairly and in accordance with the statutory criteria.

AADA supports the many varying state and federal consumer protection measures as they apply to the purchase of a motor vehicle from a LMCT.

AADA is firm in its view that any consumer claims must be assessed fairly and in accordance with the statutory criteria and that LMCTs must retain the right to defend claims without facing undue or inequitable burdens.

** This is not intended to be taken as legal advice. Any comments are of a general nature and provided for dealers to be aware of the new laws**

From 1 January 2026, Australia will be moving from a voluntary merger clearance regime to a mandatory merger notification regime for certain transactions meeting monetary thresholds (or other specific industry thresholds). The new notification regime draws its legislative authority from the Competition and Consumer Act 2010 (Cth).

To help dealers understand more about the Australian Competition and Consumer Commission (ACCC) Merger and Acquisitions regime as it applies from 1 January 2026, we attach a high-level summary developed by the Automotive Industry Group at HWLE Lawyers.

The high-level summary includes advice regarding:

• When ACCC notification is required.
• Advice on the actual monetary thresholds associated with the new regime.
• Pre-notification to the ACCC and where to find the prescribed notification forms.
• Filing fees associated with the new regime.
• Further potential charges.

What will this mean for dealers?

From 1 January 2026, any dealership merger or acquisition that exceeds the turnover thresholds will trigger a requirement to notify the ACCC. In essence, dealers will need to gain clearance from the ACCC for those transactions to take effect.

What happens if a dealer does not comply?

If you do not obtain clearance from the ACCC penalties of up to $50m or 30 per cent of the Australian group turnover may apply.

What is AADA’s position?

The AADA believes the new merger regime will capture the overwhelming majority of dealership merger or acquisitions. This will come at great cost and complexity for an industry which is not concentrated and is characterised by intense inter and intra-brand competition. We are meeting with Treasury next week and are in the process of commissioning research to demonstrate the effect of this regime on the automotive industry.

AADA advises dealers to take the appropriate legal or professional services advice when entering into dialogue about a merger or acquisition.

DOWNLOAD GUIDANCE DOCUMENT

Victorian dealers who complete vehicle roadworthiness testing as Licensed Vehicle Testers (LVT) are advised that the Department of Transport and Planning (DTP) have announced a new Electric Vehicle (EV) category.

From 1 June 2026, it will be mandatory for any Examining Mechanic who will inspect and test an Electric or Hybrid vehicle for the purposes of issuing a certificate of roadworthiness to be ‘EV’ accredited, and for the LVT Licence to have the ‘EV’ accreditation. LVTs may begin preparing now, with training and assessment already available through the existing RTO network. Additional equipment and safety requirements will also apply to premises conducting EV testing.

The AADA acknowledges the proactive role Victorian franchised dealers played in assisting DTP to understand the operational and safety considerations involved in EV servicing and inspection. We also recognise DTP’s constructive engagement with AADA throughout this process.

More information about these requirements will be provided in the LVT Licence Conditions which will be released next week by DTP.

Further details, including an extract of the announcement and DTP’s FAQs on the new category, are available at the link below.

READ MORE

Launched in June this year, the AADA National Service, Parts & Pre-Delivery Forum and the AADA Used Car Manager Reference Group have quickly become important channels for dealer feedback, industry updates, and member-driven policy work. As we wrap up the year, the final meetings for both groups are scheduled for December.

These forums ensure AADA continues to listen closely to members and respond to the day-to-day issues faced on the ground in these areas of the business. Your involvement directly helps shape AADA’s engagement with government, regulators and industry bodies.

AADA Used Car Reference Group

Date: Tuesday 16 December

Time: 2.00–3.00 pm AEDT

Chairs: Matthew Higgins (Phil Gilbert Motors NSW) & Paul O’Halloran (Hopper Motor Group Vic)

Issues on the agenda to be discussed include:

1. AADA work on the ACL – important update
2. Update on the PPSR and work done with the PPSR Regulator (Australian Financial Security Agency)
3. Online classified provider activity
4. Dealer processes for providing test drives for consumers – what is best practice?
5. Updates on:
   • ASIC review into the motor vehicle finance sector
   • AADA dealer guidance for tribunal or court claims
6. Launch of the AADA Dealer Academy

AADA National Service, Parts, and Pre-Delivery Forum

Date: Wednesday 17 December

Time: 2.00–3.00 pm AEDT

Chair: TBC

Supported by: Lance Walsh (NQ Auto Group), Stewart Jenkins (Hopper Motor Group), Jason McDonald (Western Ford)

Members are invited to forward any agenda items they wish to speak about. Current topics for discussion include:

1. AADA work on the ACL – important update
2. Update on dealer EV service, repair and roadworthiness issues:
   • NSW EV training requirements – update
   • Victorian EV roadworthy – update
   • State by state analysis on the regulatory requirements for dealers on the repair and vehicle fitness obligations of EVs.
   • Development of a streamlined solution to facilitate the recognition of prior learning for technicians who have attended OEM EV training.
3. Uncollected vehicles in dealer service departments.
4. Australian Government Inquiry into the current state of the Australian tyre industry – what does this mean for dealers who retail tyres?
5. AASRA update
6. AADA progress on:
   • National repair order
   • AADA dealer guidance for tribunal or court claims.

If your dealership would like to participate in either group, please submit your interest by registering below. Participation in each group is limited to AADA franchised new car dealership members or their used car specific subsidiaries.

REGISTER TO ATTEND

At the most recent AADA Used Car Dealer Forum, concerns were raised by dealers from all states about delays in removing financial encumbrances from vehicles on the Personal Property Securities Register (PPSR). The delays occur after the dealer has remitted the final payout amount to the party with the PPSR security interest. To help identify issues and improve PPSR processes, the AADA is asking dealers to complete a short survey capturing your experiences and any challenges with the PPSR.

Background

Legislative Requirement

Under Section 167(2) of the Personal Property Securities Act 2009 (Cth), secured parties must lodge a financing change statement within five business days of the security interest being satisfied. Dealers are concerned that this requirement is not being met by finance companies and auction houses.

Delays by finance companies and auction houses in not removing registrations from the PPSR after a security interest expires results in negative consequences for individuals, businesses and the credit system. Those delays can force dealers to cancel sales contracts, as vehicles cannot be delivered without clear title or inconvenience consumers who just want to take delivery of their purchased vehicle.

Other Key Dealer Concerns with the PPSR

Dealers have advised AADA that:

• A PPSR encumbrance removal can at times take up to three to four weeks after payout.
• Uncertainty about whether a PPSR certificate provides sufficient assurance of clear title.
• High fees charged by some private providers compared to the $2 PPSR search fee from the PPSR administrator, the Australian Finance Security Authority (AFSA).

AADA Action

AADA has engaged extensively with AFSA to address the slow discharge of PPSR encumbrances by finance companies and auction houses, other operational issues, and explore efficiencies for dealers and consumers. AFSA are keen to hear the Australian dealers’ experiences with the PPSR.

Have Your Say

To help identify issues and improve PPSR processes, AADA invites dealers to complete an eight-minute survey covering:

• Dealer interactions with finance companies.
• Auction house practices.
• Dispute resolution and the PPSR Registrar.
• Securing parts supply for aftermarket and repair sectors.

It should be taken by your dealership’s Finance and Insurance Manager and/or your dealership’s Chief Financial Officer or Administrative Manager.

AFSA will review the survey outcomes and has expressed an interest in understanding dealer experiences with the PPSR. Dealers are encouraged to visit the AFSA Regulatory Action Statement 2025-26 to view other areas where AFSA will focus on the 2025-26 period.

The survey will be open for responses until 15 December 2025.

COMPLETE SURVEY

The Australian Securities and Investment Commission (ASIC) has released preliminary insights into its current review (the review) of Australia’s motor vehicle finance sector. With preliminary findings pointing to several trends that warrant close attention from industry.

As part of the review, ASIC has taken a broad look at the motor vehicle finance sector and seeks to identify mechanisms to reduce consumer harm whilst improving outcomes for all car finance customers, including those in regional and remote areas and First Nations communities.

The review has taken the step of charting and examining the entire customer journey – from the loan application stage, assessment, hardship support and dispute resolution. ASIC identified issues such as unaffordable loans and substantial variations in establishment fees, including one case where a $49,000 loan incurred $9,000 in fees. These practices have led to poor outcomes for consumers, particularly for vulnerable groups.

In response, ASIC has issued tailored action letters to eight lenders who have been involved in the review. Those letters have recommended improvements in areas such as staff training, risk management, hardship processes, and governance frameworks. ASIC have advised that detailed findings from the review will be published in 2026. Dealers should note that ASIC have also confirmed that addressing misconduct in used car finance for vulnerable consumers remains a key ASIC enforcement priority in 2025 and 2026.

AADA members who act as intermediaries and arrange consumer vehicle finance are encouraged to consult directly with their finance providers regarding any concerns they may have with the review and ensure that the finance company are working within the legislative requirements of the National Consumer Credit Protection (NCCP) Act 2009 (Cth).

The AADA met with ASIC ahead of the release of their preliminary insights and is in regular dialogue with the Australian Finance Industry Association (AFIA), the peak body representing the finance industry. AADA remains confident that the overwhelming majority of our members are adhering to their responsible lending obligations. While it is unclear to what extent new car dealers or AADA members have been the focus of ASIC’s current investigation, dealers should expect a period of heightened scrutiny.

The AADA has released the October 2025 Automotive Insights Report. The report provides a national snapshot of used car sales and listings, with 206,503 vehicles sold during the month, up 2.8 per cent on September.

Used hybrid sales have more than doubled in the last two years, rising from 6,868 in October 2023 to 14,784 vehicles this month. Consumers are clearly looking for practical options that deliver lower running costs and emissions without compromising on convenience.

Hybrid listings also increased strongly, up 21.1 per cent month-on-month, highlighting rising supply and consumer confidence in the segment. While electric vehicle sales also rose modestly (up 7.9 per cent), the hybrid segment showed the sharpest growth, outpacing both petrol and diesel.

Overall used car activity remained stable, with total listings easing 3.9 per cent and dealers accounting for 52.4 per cent of all sales.

Key insights from the October 2025 AIR include:

• Sales rise: National used car sales totalled 206,503, up 2.8 per cent month-on-month.
• Listings ease: Active listings fell 3.9 per cent to 325,018, with reductions across most states.
• Hybrid momentum builds: Used hybrid sales climbed 3 per cent month-on-month and are up nearly 50 per cent year-on-year.
• EVs gain traction: Used EV sales rose 7.9 per cent to 3,231 vehicles, continuing steady growth.
• SUVs remain dominant: The segment accounted for over 43 per cent of all used car sales.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a dealer of a contributing brand and would like access to the monthly report please email Communications Manager Ashleigh Sykes on asykes@aada.asn.au.

The AADA has previously advised New South Wales (NSW) dealers of the new requirements introduced under the NSW Motor Dealers and Repairers Regulation 2025 (MDRA) governing the online sale of motor vehicles.

Following these changes, the AADA has received several enquiries from NSW dealers and DMS providers seeking clarification on online selling requirements.

The AADA sought clarification from the NSW Fair Trading Consumer Protection Investigation Unit regarding the intent of the new provisions, specifically, whether dealers are required to upload a Form 5 notice with each online vehicle listing and how an online motor dealer is defined under the legislation.

NSW Fair Trading provided the following advice and relevant legislative references from the Motor Dealers and Repairers Act 2013 (NSW) (the Act).

Operating as an ‘online dealer’

If a dealer has not nominated a URL (website) as a premises on their motor dealer’s license, then they currently cannot operate wholly or partly as an online dealer. To operate as an online dealer, a ‘change to notified premises form’ must be submitted and approved by Fair Trading, and a URL ending in “.au” must be submitted as part of this application. Online motor dealers are also required to notify the Secretary at least 20 days before commencing to carry on business as an online motor dealer.

Form 5 requirements

The requirement to make a Form 5 publicly available only applies to motor dealers who wholly or partly operate as an online motor dealer. An online motor dealer means a motor dealer who uses a website to offer for sale and sell motor vehicles to online purchasers. An online purchaser means a purchaser of a motor vehicle from an online motor dealer through the online motor dealer’s website (s4 of the Act).

Definition of ‘online dealer’

If a dealer (e.g. Bob & Bill’s Car Sales) maintains a website or advertises their vehicles on a third party website which offers vehicles for sale, but the sale is completed from either of the nominated physical premises (e.g. 12 Smith Street, Wollongong NSW 2500), then this is NOT considered the business of an online motor dealer.

If Bob & Bill’s Car Sales decides to become ‘partly’ an online dealer and a change to the notified premises form is submitted and approved, then online motor dealer requirements apply. In this circumstance, Form 5s must be publicly available on the online motor dealer’s website in addition to being attached to the motor vehicle. If a motor dealer is online only, then Form 5s are required to be publicly available on the website which is nominated on their motor dealer’s license.

The requirement to display a license number

NSW Fair Trading advise this requirement applies to all motor dealers regardless of whether they are online, partly online or not online. This means their license number must be prominently displayed in a reasonably prominent location on their website and advertising material.

Other

Form 5 motor dealer notices are only required to be advertised and completed for the sale of second hand and ex-demonstrator vehicles. If the second hand or ex-demonstrator vehicle is sold to a motor dealer, motor recycler or financier, then a form 5 does not need to be completed. (s60 of the Act)

Dealers currently operating as an online dealer have until 1 December 2025 to notify NSW Fair Trading and meet all other requirements.

This is to remind members of the upcoming annual general meeting of the members of the Australian Automotive Dealer Association Limited. The details of this meeting are as follows:

• Date: Tuesday 28 October 2025
• Time: 2:00pm (AEDT)
• Place: Video conference (details provided upon registration)

REGISTER FOR AADA AGM

At the meeting, members will be asked to consider and vote to:

• accept the annual report
• accept the director’s report
• accept the auditor’s report
• accept the annual financial statements
• accept the outcome of the election of directors

DOWNLOAD NOTICE OF AGM & PROXY VOTING FORM

The wait is over – the AADA Dealer Academy is officially live and ready for your team to get started.

As a AADA member, you now have access to Australia’s first and only online training academy built for dealers, backed by dealers.

Designed with input from leading dealerships across the country, the Academy provides a dedicated resource for staff development and training, supporting your business by empowering your team with the skills and knowledge needed to excel in today’s competitive market.

From management to administration, the AADA Dealer Academy offers a range of practical, automotive-specific courses tailored to every role in your dealership. Each course is designed to help you drive growth, ensure compliance, and boost profitability.

Some highlights of the AADA Dealer Academy include:

• Browse and subscribe to courses relevant to your role.
• Start, pause, or repeat bite-sized modules anytime.
• Build a custom learning path that fits your dealership’s needs.

FIND OUT MORE

If you have any questions, please don’t hesitate to reach out to our Academy team at info@aadadealeracademycom.au.