5th May, 2022 ยท bulletin

Introduction of Consignment Selling
Licence Category for West Australian

< 1 minute to read

The WA state government announced the introduction of a new licence category for Dealers wanting to sell on consignment. This decision allows consignment selling in the state which is a practice that was previously disallowed and subject to a separate application process to Consumer Protection for the restriction to be removed.

The licence will be available to Dealers subject to a range of conditions including a “fit and proper person” test and a character test. The announcement also provides further detail on the conditions of the consignment licence, which are as follows:

  • all consignment contracts must be in writing, contain certain regulated terms and conditions, and state in writing the amount which the owner should be paid;
  • the Dealer can keep any money they receive from the sale in excess of the amount they agree to pay the owner;
  • the Dealer must give the owner a copy of the consignment agreement immediately after the agreement is signed;
  • all proceeds or money from any consignment sale must be held in a trust account;
  • the Dealer must pay the total net proceeds to the owner within two business days of receiving payment;
  • the Dealer must get approval from the owner to conduct repairs prior to selling the vehicle; and
  • the Dealer must pay for all warranty repairs after the vehicle is sold.

The existing motor vehicle Dealer training course will be updated to include information regarding the new licence category.

The amendments to the legislation are yet to be introduced to parliament and a date for commencement is not yet known. Further advice regarding the introduction of the new licence category will be provided when it becomes available.