Archives: Dealer Bulletins

South Australian dealers are advised that the SA Government’s Consumer and Business Services Department has announced a crackdown on dodgy second-hand vehicle sellers commencing 1 July 2025. The crackdown will reportedly comprise the strongest penalties in the nation including:

• maximum penalties for unlicensed dealing increase from $100,000 to $250,000 and/or two years imprisonment for individuals, and from $250,000 to $500,000 for body corporates (companies).
• a 15-fold increase of the maximum penalty for odometer tampering to $150,000, or for three or more offences, and/or two years imprisonment.
• a new offence for providing false and misleading statements in relation to odometers plus powers to require that altered odometers be rectified.
• allowing courts to order compensation for a consumer impacted by a private seller convicted of odometer tampering.

There are additional changes to the Second-hand Vehicle Dealers Act 1995, set to take effect later in 2025. These reforms will include:

• Dealers no longer allowing a purchaser to waive the dealer’s duty to repair a vehicle.
• Dealers having a duty to disclose defects that will not be subject to the duty to repair, provided that the vehicle is roadworthy.
• Expanding the dealer’s duty to repair to include the main propulsion batteries in hybrid and electric vehicles within the statutory warranty period.
• The removal of the dealer requirement under section 16 (3)(d)(i) of the Act to display the previous owners name and address.

The SA Government has advised that the supporting regulations to the Act are currently being finalised with the intention to commence these in coming months. AADA will advise dealers when those regulations become active.

All of these changes do not impact a consumer’s rights under the Australian Consumer Law.

More information can be found on the Consumer and Business Services Department website.

The attached guidance framework is designed to help dealers to understand what constitutes best practice when entering into agreements with IT system service providers. It was created in collaboration with a group of dealers to assist in establishing fair and reasonable trading arrangements between dealers and the IT systems providers who provide the software that help keep dealerships running.

The framework is not intended to be prescriptive but is designed to help dealers understand some of the risks and issues associated with entering into and managing relationships with IT system providers. This is a working document which will be reviewed and updated from time to time, as new issues are identified.

Please use it as a reference when entering in to or renewing existing agreements and share it with your CIO/CTO.

AADA will be sharing this framework with the larger system vendors in the industry and will also seek to meet with them and discuss the issues dealers are experiencing.

Please note that the attached guidance is not legal advice. If members require expert advice, we recommend that you seek specialised legal advice from suitably qualified lawyers.

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The AADA has today released a new report, ‘New Vehicle Efficiency Standard Impact on Automotive Dealers’. Prepared by the Centre for International Economics, this report comprehensively examines how the New Vehicle Efficiency Standard (NVES) could affect Australia’s more than 3,200 franchised new car dealerships.

The key finding of the report was that the introduction of the NVES could cost Australian dealerships anywhere between $1.1 billion and $2.1 billion between 2025 and 2029, depending on how car manufacturers (OEMs) and vehicle importers decide to meet their emissions targets.

There are several options OEMs have in meeting their compliance obligations. Namely, adjusting their vehicle mix to meet their specified fleet target, purchasing credits from other OEMs to offset any emissions above their fleet target, or paying a penalty for not meeting the target.

In practice, most regulated entities are expected to use a mix of these strategies to meet their NVES obligations, and the approach taken by OEMs to meet the NVES and how costs are shared across stakeholders, will affect the impact on dealers.

The findings of this report are critical in supporting ongoing advocacy for the franchised new car industry, particularly regarding increasing franchising protections for dealers and the importance of shifting the point at which compliance is met with the standard to the point of sale.

The AADA continues to advocate that while dealers are ready to contribute to emission reduction goals; it’s important that OEMs can’t shift risks and financial costs downstream to dealers due to the extensive power they wield in their relationships. Implementation of the NVES should reflect the realities of the automotive retailing industry in Australia, and the compliance burden should lie squarely with the regulated OEM.

 

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As dealers begin their annual ‘End of Financial Year’ (EOFY) sales advertising campaigns, the AADA takes this opportunity to remind all dealers of their obligations to ensure they are adhering to the Australian Consumer Law (ACL) when advertising a price or vehicle capability. Recent activity by the Australian Competition and Consumer Commission (ACCC) indicates that the regulator is focussing attention on our industry and the spotlight is expected to be on dealer and OEM advertising over this period.

 

New and used vehicles. How can they be price advertised?

Vehicle advertising at a dealership can be done by dealers, OEM’s or both as part of a cooperative program, but in all cases all advertising must comply with the ACL.

To ensure that your dealership(s) comply with the ACL you should refer to the ACCC publication Pricing manual for the motor vehicle industry. Dealers should ensure that any external advertising or marketing agency you are working with are also provided with a copy of the ACCC pricing manual.

 

Recent ACCC proceedings against vehicle manufacturers and distributors.

The importance of complying with the ACL guidelines when advertising the sale of a vehicle (new, used or demonstrator) with regards to a vehicles price and capabilities has magnified when we consider the following two recently instituted proceedings taken by the ACCC.

1. The ACCC has instituted proceedings in the Federal Court against Jayco Corporation Pty Ltd (Jayco), Australia’s largest caravan and recreational vehicle manufacturer, for making allegedly misleading representations when advertising certain models of its RVs in ‘off road’ conditions.
2. The ACCC has instituted proceedings in the Federal Court against Ateco Australia Pty Ltd trading as LDV Automotive Australia, (LDV) for allegedly making misleading representations to consumers about the durability and suitability of particular models of LDV branded vehicles in breach of the ACL. The ACCC alleges that those vehicles had a propensity to rust or corrode within five years of being manufactured.

 

What does this mean for dealers?

In both of the most recent instances, the parties listed as respondents in the ACCC instituted proceedings are a manufacturer and a distributor. This does not preclude dealers from future actions by the ACCC or other state-based regulators alleging false or misleading practices, including price advertising. Dealers should ensure that all of their advertising campaigns meet the ACL guidelines.

A false representation is one that is incorrect or contrary to fact. As with the prohibition on misleading conduct, your intention to deceive or otherwise is irrelevant. You may breach these provisions regardless of whether your actions were deliberate or whether you did not know the representation was false at the time of making.

 

What has been the ACCC’s specific position regarding false and misleading representations when advertising certain models of vehicles?

The ACCC is on the record as stating that if a vehicle is depicted in advertisements in a particular setting, or claims are made about it, that consumers have a right to expect such images and words reflect the intended use of the product.

The ACCC also state that a new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include.

It is unfortunate that the ACCC and the state-based offices of fair trading continue to ignore the private-to-private market advertising of vehicles on different online classifieds provider platforms. AADA continues to remind those agencies of the consumer harm those platforms are enabling.

The May 2025 edition of the Automotive Insights Report (AIR), produced by the AADA in collaboration with AutoGrab, shows a rebound in used car sales, increasing by 5.4 per cent to 192,692 units, while used car listings also increased by a similar margin, indicating a stable balance between supply and demand.

The observed increase in listings may be partly attributed to end-of-year discounts being offered in the new car market, prompting more people to upgrade their vehicles and boosting the supply of used cars.

Across the vehicle segments, SUV remains the most popular vehicle of choice, experiencing the highest jump in sales, up 7.9 per cent to 83,442 units compared to April 2025.

Average days to sell dropped to 47.6 days, the lowest this year, suggesting improved stock turnover.

Used car sales rose across all states but the Northern Territory, which experienced a notable drop in sales, down 12.4 per cent to 648 units.

Used EVs, in particular, experienced significant growth, increasing by 37.5 per cent in May 2025 compared to 8.4 per cent in April this year, suggesting a strong shift in consumer preferences toward cleaner vehicles.

Small vehicles in the passenger segment continue to lead in value retention, with the Audi RS3 replacing the Ford Mustang, at 105.8 per cent in the 2-4 year old age category. Japanese car maker Toyota maintains top position in the 5-7 year age bracket, with the Toyota Vitz at 100.3 per cent. The Suzuki Jimny continues to remain unbeatable in the 2-4 year old SUV category at 111.8 per cent.

Highlights from the AIR for May 2025:

• 192,692 used cars sold nationally – a 5.4 per cent increase from April.
• Total listings were up 5.2 per cent, with the Northern Territory being the only outlier.
• EV sales experienced significant growth, rising by 37.5 per cent to 3,552 units.
• Average days to sell dropped to the lowest point this year – 47.6 days.
• The Suzuki Jimny maintains top retained value position in the 2-4 year old SUV category at 111.8 per cent.
• Ford Ranger and Toyota Hilux continue to top the dealer sales list.
• In EVs, Tesla Model 3 and Tesla Model Y were the top picks once again.

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.

AADA is pleased to be offering members another timely and practical webinar, this time tackling a significant legal development that will impact all dealerships. With privacy and data protection now squarely in the spotlight, this session will equip dealers with the knowledge they need to stay compliant and safeguard their businesses.

Title: The New Statutory Privacy Tort – What It Means for Dealers

Date: Thursday 26 June 2025

Time: 1:00pm-2:00pm AEST

Presented by: Sotheary Bryant and Bill Fragos from Moray & Agnew

The new statutory tort for serious invasions of privacy, will be effective from 10 June 2025.

Under this new law, a customer may sue a dealership and seek damages or an injunction if there has been a misuse of their information or an intrusion on their privacy.

All dealerships collect, hold, disclose and use personal information about customers. Many dealers use data driven solutions to develop insights about customers, to market to them and to engage with them. Dealers also share customer information with their OEMs and give access to their databases to third party service providers.

The volume of customer data in dealerships means dealers must have strong privacy and data protection governance to limit risks of unintended disclosure. We will share some practical and simple things dealers can do to protect their dealerships.

Webinars are open to all dealers and their staff, so secure your spot today!

REGISTER HERE

In order to assist dealers navigate competition law, state legislation, and retail practices across their used car operations and service, parts, and pre-delivery departments, AADA is establishing two new reference groups: the AADA Used Car Reference Group and the AADA National Service, Parts and Pre-Delivery Forum.

These groups reflect AADA’s continued focus on listening to members and responding directly to the challenges dealers face on the ground. Dealer input has always played a critical role in shaping policy positions, and engaging with government and industry bodies.

1. AADA Used Car Reference Group

The used car department is a vital profit centre for Australian franchise dealerships, but it is also fraught with complexity. This group will address:

• Australian Consumer Law and used vehicles
• State motor vehicle registration agencies processes for attention
• On-line classifieds provider issues
• The used EV market
• Odometer tampering, auction house practices, fleet buybacks, and private-to-private sales
• OEM service programs and approach to dealer warranty issues. (for example, manufacturers indemnification)
• Engagement with ACCC, various Offices of Fair Trading, and Registration Authorities

Participation will strictly be limited to Australian franchise dealer network used car departments. Used car specific subsidiaries of franchise dealer set ups (for e.g., CARCO – Autoleague, Blinkr-Servco) are encouraged to participate.

Meeting Details:

Initially monthly via TEAMS, then as required (max. 1.5 hours per session). An interim chair will be appointed.

2. AADA National Service, Parts and Pre-Delivery Forum

From navigating warranty and OEM demands to servicing EVs and managing pre-delivery, dealer service departments face increasing pressure. This new forum will focus on addressing:

• The ACL and manufacturers indemnity
• Service and repair of EV, PHEV, and hybrid vehicles
• Issues around part supply to the smash repair and aftermarket mechanical sector
• Engagement with AASRA, insurers, regulators, and industry bodies
• Repair liens, uncollected goods, environmental compliance, and more

Participation will be limited to Australian franchise dealer service, parts and pre-delivery departments. The best outcomes will be achieved if your franchise dealership group service and parts manager were to participate. Of course, Dealer Principals are also welcome to participate.

Meeting Details:

Initially monthly via TEAMS, then as required (max. 1.5 hours per session). Interim co-chairs will be Richard Rayner (Brighton Auto Group) and Stewart Jenkins (Hopper Motor Group).

Register Your Interest

If your dealership would like to participate in either group, please submit your interest via the registration form below by 24 June 2025.

REGISTER HERE

AADA offers a timely reminder for all Australian franchise dealers of the importance of sales staff advising purchasers of new motor vehicles of their consumer rights under the auspices of the Australian Consumer Law (ACL). Consumer guarantees are automatic rights under the ACL and cannot be restricted or excluded by the manufacturer or the supplier (i.e. the dealer).

Many dealers rely on the statements made in the manufacturer’s handbook, or on terms articulated on the many differing versions of motor vehicle sale contracts to inform consumers of their rights. While in many cases this may be considered to be sufficient enough guidance for a consumer, the most complete and thorough procedure to follow to ensure a consumer is advised of their ACL rights is via the provision to the consumer of the Australian Competition and Consumer and Commission (ACCC) fact sheet; ‘Just bought a new car?’.

AADA recommends that the ‘Just bought a new car?’ factsheet be provided in hard copy to all purchasing consumers. You can download copies from the link below. It is good practice to also provide a link to the fact sheet on any online transaction you are completing with a purchaser.

Although the provision of the ACCC factsheet is not considered to be a prescribed document for inclusion in any deal pack, it will go a long way to assisting the consumer should a claim arise. Importantly, the practice will reinforce with the various state and federal government consumer agencies that dealers take the ACL and rectification of consumer facing issues seriously.

Consumer guarantee rights apply not only to new vehicles but also to demonstrator and used vehicles. Manufacturers and dealers must honour any consumer guarantee rights regardless of any express or implied commercial warranties they provide to consumers. This includes the sale of new, used and demonstrator motor vehicles. On this basis, it is also good practice to provide a copy of the ACCC factsheet to a purchaser of a demonstrator or used vehicle.

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Commencing 1 July 2025, the Australian Taxation Office (ATO) have announced the Luxury Car Tax (LCT) thresholds for the financial year the car was imported, acquired or sold.

The motor vehicle consumer price index (CPI) indexation factor for the 2025-26 financial year is 0.997. Therefore, the car limit and the luxury car tax threshold for both fuel-efficient vehicles and other vehicles will not increase.

If you import or sell a car with a GST-inclusive value above these LCT thresholds, you must pay LCT except in certain circumstances. In general, the LCT value of a car includes the value of any parts, accessories or attachments you supplied, or imported, at the same time as the car.

LCT Thresholds
Financial year	Fuel efficient vehicles	Other vehicles
2025-26	$91,387	$80,567
2024-25	$91,387	$80,567
2023-24	$89,332	$76,950

 

In addition, due to an amendment to A New Tax System (Luxury car tax) Act 1999, from 1 July 2025, the:

• definition of a fuel-efficient vehicle will also change, affecting vehicles with a fuel consumption rate between 3.5 and 7 litres per 100km, and
• indexation rates for fuel-efficient vehicles and other vehicles will be aligned.

More information on the LCT thresholds and calculation of the LCT can be found on the ATO website.

AADA, in partnership with AutoGrab, have released the April 2025 Automotive Insights Report, highlighting a seasonal softening in the used car market driven by April’s run of public holidays – and a marked rise in dealer market share compared to the same time last year.

Key insights from April include:

• Used Vehicle Listings Decline: National listings dipped slightly to 310,054, down 0.6 per cent month-on-month.
• Sales Volume Drops: Total transactions fell to 182,827, an 8.8 per cent decline compared to March, with notable drops in the ACT (-18.3 per cent), NSW (-12.7 per cent) and VIC (-11.7 per cent).
• Dealer Share Surges Year-on-Year: Dealers accounted for 52.5 per cent of listings and 45.4 per cent of all used vehicle sales in April, a substantial increase of 12.9 and 10.5 per cent respectively compared to April 2024. The figures underscore dealers’ growing prominence in the online marketplace, driven by better digital tools, structured inventory management, and consumer trust in dealer-backed transactions.
• Days to Sell Improved Marginally: Vehicles took an average of 49.7 days to sell, a slight improvement from 51.3 days the previous month, indicating a modest uptick in turnover efficiency.

“Electric vehicles remained a standout segment, defying broader trends with a 7.1 per cent rise in listings and an 8.4 per cent increase in sales compared to March. The EV used vehicle market is showing encouraging signs which, as a result should support a stronger residual valuation price supporting dealerships confidence in retailing and lenders having a better sense of risk,” said Saxon Odgers, CCO, AutoGrab.

The April 2025 Automotive Insights Report offers an in-depth view of market trends, sales activity, and vehicle turnover across the country, providing essential intelligence for dealers, consumers, and policymakers.

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.