Proposals for motor vehicle consignment sales reform 2020

Status: OPEN, closing date 4 December 2020

We are reviewing the regulation of consignment sales of vehicles under the Motor Vehicle Dealers Act 1973 (WA) and we want to hear from you. 

Background

In 2019 we conducted a review of legislation regulating motor vehicle dealers and repairers which identified vehicle consignment sales as an area of significant potential risk to consumers. 

The consignment sale of a vehicle is where the owner engages a licensed motor vehicle dealer to sell their vehicle. The dealer undertakes the transaction on behalf of the owner and pays the proceeds of sale to the owner, less any agreed costs and commission. There are 985 licensed motor vehicle dealers in Western Australia, of which 138 were approved to sell vehicles on consignment.

For those who are time poor or don’t think they have the skills or confidence to negotiate the sale of their vehicle privately, selling on consignment through a licensed motor vehicle dealer is a viable option but comes with some risk. For example, some unscrupulous dealers may behave in a way that is designed to avoid transparency and to take advantage of vehicle owners who may not be aware of their rights. We have had several major cases of non-compliance with the laws recently which have resulted in significant financial losses to vehicle owners. 

Current consultation phase

We encourage consumers and people involved WA’s motor vehicle industry to let us know their views about whether motor vehicle consignment sales should continue in its current form. 

Key points of the consultation

The consultation paper identifies a number of options for reforming vehicle consignment sales, including:

• no change to existing vehicle consignment sales laws;
• strengthening existing motor vehicle dealer licensing provisions for consignment sales; or
• banning vehicle consignment sales, with the exception of vehicles sold at auction.

It's easy to have your say

Your input will help us make decisions about the regulation of vehicle consignment sales in Western Australia. 

Complete a brief online survey

The motor vehicle consignment sales online survey is a quick, convenient way to have your say. 

Submit feedback in writing

You are welcome to: 

• write a short email or letter outlining your views; or
• make a formal submission.

In your response, please let us know if you are a consumer, an individual in the motor vehicle industry, or represent an industry body or association. 

Please submit your feedback by email to consultations@dmirs.wa.gov.au

or by post to

Motor vehicle consignment sales consultation
Department of Mines, Industry Regulation and Safety (Consumer Protection Division)
Locked Bag 100
East Perth WA 6892

Submissions will be accepted up until 5pm, Friday 4 December 2020.

How your feedback will be used

Your feedback will help us understand your thoughts on vehicle consignment sales in Western Australia and will help us develop policy that may be put into law. Submissions will be treated as public documents, unless explicitly requested otherwise.

If you do not consent to your submission being treated as a public document, you should mark it as confidential, or specifically identify the confidential information, and include an explanation.

Please note, even if your submission is treated as confidential by Consumer Protection, it may still be disclosed in accordance with the requirements of the Freedom of Information Act 1992 (WA), or any other applicable written law.

Consumer Protection reserves the right to delete any content that could be regarded as racially vilifying, derogatory or defamatory to an individual or an organisation.

A summary of feedback will be released publicly after the consultation period has closed.

Downloads and resources

• Decision Regulatory Impact Statement: Review of the Motor Vehicle Dealers Act 1973 and the Motor Vehicle Repairers Act 2003 (final report) July 2019
• Motor vehicle industry review stage two consultation paper 2015
• Review of the Motor Vehicle Dealers Act 1973 and Motor Vehicle Repairers Act 2003 Consultation Discussion Paper
• Motor Vehicle Dealers Act 1973 (WA)

Enquiries

Enquiries can be made by calling Consumer Protection on 1300 304 054 or by email to consultations@dmirs.wa.gov.au.