20th April, 2022 ยท bulletin

Change to Proposal to Restrict Online
Selling of Used Cars

< 1 minute to read

NSW members may be aware of a proposal by the NSW state government to restrict end to end, online selling to new vehicles only, effectively making it illegal to sell used vehicles entirely online. In welcome news, we have just been advised by the NSW Department of Customer Service that the amendments will now be extended to allow for the purchase of both a new and used cars to be conducted entirely online. While we are still awaiting the final wording of the regulations, the advice provided indicates that it will be changed to recognise this decision.

In our view this change would have resulted in considerable consumer detriment and harm to all licensed Dealers in NSW. In late March we lodged a submission to the NSW state government indicating our strong opposition to the proposal and calling for detailed evidence as why such a drastic change was required. We also met with NSW Minister for Small Business and Fair Trading, Eleni Petinos, to discuss our concerns regarding the proposal.

We commend the Minister and the Government on acting so quickly and decisively to ensure licensed traders can continue to sell in ways that offer convenience to their customers, while still placing a priority on protecting consumer interests.

The review of the Act also includes sections designed to modernise the legislation in several key areas, which we fully support, though we have concerns about proposed changes to the way defective vehicles are handled and the proposed requirement for them to be returned to the selling Dealer for rectification, which may not be practical in some situations. We will continue to work with the Department on this issue.