New red tape reductions and amendments to Victorian Government legislation will help car dealers streamline recordkeeping practices thus saving money. While car buyers will be better protected and have a clearer understanding of what they are buying.
It is estimated the cuts will save more than $1 million annually and consumers will benefit by having clearer documentation on the purchase of vehicles when buying from a Licensed Motor Car Trader (LMCT).
The cuts were confirmed in the recent Consumer Affairs Legislation Amendment Bill 2014, which addressed a number of business duplication and compliance issues. The changes come into effect on 1 November 2014.
VACC and LMCT members worked closely with Government to provide information to show how unhelpful regulation, duplication and compliance impacts business, and has a negative effect on consumers. VACC, the Government, Consumer Affairs Victoria and the Red Tape Commissioner, John Lloyd, collaborated to discuss a raft of bureaucratic impositions on LMCTs, which will soon be scratched, leading to less consumer complaints and a more efficient system.
“The current car buying process in Victoria works well and when purchasing from an LMCT, buyers receive a number of protections, including a three day cooling off period.
“However, a number of administrative changes will make documents even clearer and provide more safeguards for buyers. For example, information about the three day cooling off period will become more prominent on the contract of sale,” says VACC executive director, David Purchase.
What will these new red tape cuts mean to used and new car dealerships across Victoria?
VACC says, “simplification of the MCTA forms 5, 6 & 7 required, to communicate vehicle price and description, means one form only where previously there were 4 to choose from. This streamlining will assist to reduce duplication and cost.”
Repeal of the form 4 which informed consumers about cooling off rights but was often confusing. It has been replaced with a requirement to include details of cooling off on the New and Used car contract of sale. This places the information up front on the contract when the contract is signed.
“Confusion over the waiver of cooling off will also be avoided,” says VACC.
“Consumers will be entitled to cool off for three days after the contract is signed and up until the vehicle is delivered. Once the car is delivered cooling off ceases. There is no change to warranty as a result of this simplification and clarification.”
Will these new cuts purely have a time saving benefit, or are they meant to make it easier for dealers to streamline the sales/admin process?
According to VACC, “The new red tape reductions will help save time, while record-keeping will be reduced saving money on matters that were duplicated.”
VACC says that the “whole auto industry uses Vehicle Identification Numbers (VIN) to accurately describe a vehicle.” The changes have confirmed this approach and removed the requirement to record engine numbers.
“The engine number can be very difficult to see on modern vehicles and therefore LMCTs wasted time searching for numbers. The VIN is easier to find and definitive. Time will be saved and confusion avoided,” says VACC.
Verification of the VIN and registration (if needed) is readily available via electronic access to the VicRoads vehicle registration enquiry database.
“The requirement to supply the name and address of the previous owner of a vehicle has also been removed. This information is not available via the registration check and often regarded as an invasion of privacy by previous owners. Time, effort and record keeping will be reduced,” says VACC.
VACC has also undertaken a full review of the new and used car contracts which will now be easier to understand and easier to retain as a record.
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