17th March, 2023 ยท bulletin

Incorrect Contract Cancellation Fees
Crackdown for Western Australia

< 1 minute to read

Dealers in Western Australia are reminded that as of 1 January 2022 the prescribed words of the vehicle sales agreement changed in the Motor Vehicle Dealers (Sales) Regulations 1974.

Clause 8 of Schedule 5 of the regulations prescribes the maximum customer cancellation fee that can be listed in a contract of sale is currently 5 per cent. This is a reduction from the previously regulated 15 per cent prior to 1 January 2022.

The words prescribed in schedule 5 of the regulations must be used in vehicle sales agreements.

In a recent media statement WA Consumer Protection announced that they will be enforcing the regulations and have already issued infringement notices to Dealers after buyers signed outdated Dealer contracts which stated the old 15 per cent cancellation fee. Consumer Protection also stated there will be ‘zero tolerance’ for Dealers who continue to use outdated contracts.

Dealers are advised to familiarise themselves with the Act and Regulations and check their contracts for the use of the up to date and correct wording in order to comply with Section 42A of the Act using Schedule 5 of the regulations.