The Victorian Motor Car Traders Regulations 2008 (2008 Regulations) will sunset and expire on 1 December this year.
The updated and new-look version of the 2008 Regulations will commence on 1 September 2018. There are a number of key changes – some substantive while some are cosmetic. We’ve looked under the bonnet and worked out what you need to know.
Two is better than one
For a start, the 2008 Regulations will be replaced by two new 2018 regulations –
- The Motor Car Traders (Fees) Regulations 2018 (2018 Fees Regulations); and
- The Motor Car Traders Regulations 2018 (2018 General Regulations)
The design of the new 2018 Regulations are slightly different from the 2008 Regulations in appearance as the fee-related aspects are now contained in a separate 2018 Fees Regulations while the 2018 General Regulations will look after all other aspects of this.
From your perspective, there are important changes to the prescribed forms which you use. Upon review of the forms, apart from the forms’ identification numbers, there are few substantive changes.
Dealers should not be too alarmed by the new changes at this stage as the current (2008 Regulations) forms can still be used post 1 September 2018 as long as they conform with requirements.
That being said, dealers should plan ahead, turn their minds to the new forms and endeavour to use new forms from 1 September this year.
|2008 Regulations||2018 Regulations|
|Form 1 - Prescribed sign||Form 1 - Prescribed sign|
|Form 2 - Dealings book||Form 2 - Dealings book|
|Form 3 - Notice to Motor Car Trader by prospective person employed in a customer service capacity||Form 3 - Notice to Motor Car Trader by prospective person employed in a customer service capacity|
|Form 4 - N/A revoked||Form 4 - Used Car Warranty & Used Motor Car Notice (Form 5 in the 2008 Regulations)|
|Form 5 - Used Motor Car Price and Data Sheet||Form 5 - Statement of Defects in a used motor car offered for sale (Form 8 in the 2008 Regulations)|
|Form 6 - N/A revoked||Form 6 - Statement of Verification (Form 9 in the 2008 Regulations)|
|Form 7 - N/A revoked||Form 7 - Embargo Notice (Form 10 in the 2008 Regulations)|
|Form 8 - Statement of Defects pursuant to section 55 of the Motor Car Traders Act 1986 in a used motor car offered sale||N/A|
|Form 9 - Verified Statement||N/A|
|Form 10 - Embargo Notice||N/A|
Other matters to note
- A motor vehicle that has been displayed for sale for the purpose of carrying out demonstrations is now deemed to be a used motor car. Demonstrator vehicles will need to have a Form 4 attached and be entered into your dealings book;
- The fees under the new 2018 Fees Regulations are generally lower than the fees set under the 2008 Regulations. For example, the first annual licence fee is down from 114.03 fee units ($1647) to 103.1 fee units ($1490) and subsequent annual licence fee is also down from 115.19 fee units ($1664.50) to 103.1 fee units ($1490); and
- The new 2018 General Regulations imposes additional obligations on dealers. Dealers must notify the Business Licensing Authority if – a. there is any change in the majority shareholding of a body corporate that is a licensee; b. a person ceases to be or is appointed as a company secretary of a body corporate that is a licensee; or c. a person ceases to be or is appointed as a manager of the motor car trading business.
Consumer Affairs Victoria advised these new additions are required to ensure motor dealers provide updates in accordance with the initial disclosure requirements in the application to become licensed.