Unlicensed ‘backyard’ car dealers will be the target of a major investigation by the South Australia’s consumer watchdog over the next four months.
Consumer and Business Services will inspect properties of people selling more than four used cars in a year, with unlicensed traders to face fines of up to $100,000.
Consumer affairs commissioner Dini Soulio says backyard car dealers have become a widespread problem, with impacts on the licensed industry.
“Depending on the extent of their activities, we will initially approach them,” Soulio says.
“We will explain to them that they are breaking the law … and give them a warning, and where there’s people operating a more significant commercial operation we will look at taking prosecution action.”
Sulio says buying a used car from an unlicensed dealer could be fraught with risks for the customer, with no cooling-off period, no warranty and no guarantee the car is free of problems.
“Vehicles are an expensive purchase and we want to ensure both consumers and licensed traders are protected,” he adds.
Motor Trade Association (MTA) SA chief executive officer Paul Unerkov welcomed the move to crack down on ‘backyarders’.
“Members of the MTA not only meet their legal requirements, they also adhere to our strict code of conduct giving consumers even more confidence in purchasing a second-hand vehicle,” he says.
The operation will include investigators conducting unannounced inspections and face-to-face interviews with the identified unlicensed backyard dealers.
“CBS will continue to monitor the conduct of any backyard dealers detected during the targeted operation, running from September to December 2014, and outcomes of the operation will be released at its conclusion,” Soulios adds.
Sulio says investigators and compliance officers will use information from various sources to find and deal with unlicensed dealers.
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