Penalties and Infringements - Motor vehicle dealers

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Motor industry

The Motor Vehicle Dealers Act imposes serious obligations on licensed dealers, yard managers and salespersons and the way they operate their business. Failing to meet those obligations can result in the Department prosecuting offending licence holders before a Court, or initiating disciplinary action against them in the State Administrative Tribunal, or giving them an infringement notice.

Maximum penalties can range from fines as high as $50,000, infringements as high as $1000, and the State Administrative Tribunal has the power to take a licence holder's licence away from them. The offences most commonly detected by the Department are listed below. This is not an exhaustive list, and licence holders should read it in context with the full provisions of the Motor Vehicle Dealers Act and relevant Regulations.

Penalties

Motor Vehicle Dealers Act 1973
TABLE OF OFFENCES

Section

Description of Offence

Penalty

21

A dealer must include the business name and dealer's licence number:

On a sign of reasonable dimensions at every authorised premises, and,

In every advertisement published by him or on his behalf.

$1,500

27

Except in certain circumstances, dealers must keep their second-hand, trade owned vehicles at their authorised premises.

$5,000

31A and 31B

A person cannot work for a dealer as a Yard Manager or a Salesperson, unless he or she holds a Yard Managers or Salespersons licence, or an Interim Authorisation.

$5,000 and a daily penalty of $100

31C

A dealer cannot employ or engage an unlicensed Yard Manager or Salesperson.

$5,000 and a daily penalty of $100

Division 2

This division extensively regulates sales on consignment. A dealer should be conversant with the whole of Division 2 of the Motor Vehicle Dealers Act, and Part 3 - Trust Accounts in the Motor Vehicle Dealers (Sales) Regulations 1974.

$5,000

(For breach of any section within the division)

32B and 42A

A dealer cannot sell a vehicle, unless the contract or agreement for the sale of that vehicle is in writing, signed by all parties, and includes the prescribed particulars, terms and conditions.

$5,000

45

It is an offence for any person to wilfully and with intent to deceive another person, alter, cause to be altered, or connive in the alteration of the reading of an odometer on the vehicle.

$50,000

Motor Vehicle Dealers (Sales) Regulations 1974

14, relating to 11

Where a dealer advertises a second-hand vehicle for sale, the advertisement must contain;

  • The registration number of the second-hand vehicle,
  • The year of manufacture,
  • The cash price, and
  • The address of the dealer's authorised premises.

$2,000

 

Infringements

Motor Vehicle Dealers Act 1973
Section 55A

TABLE of DESCRIPTIONS of OFFENCES

Section Description of Offence Penalty
20G(3) Failing to display the 'Certificate of Authorised Premises' in a conspicuous position at the premises to which the certificate applies. $150
21(a) Failing to cause the business name and licence number to appear on a sign of reasonable dimensions at every premises. $150
21(b) Failing to cause the business name and licence number to appear in every advertisement published by him or on his behalf. $150
21C(3) Failing to display a ‘certificate for car market operator's premise' in a conspicuous position at the premises to which the certificate applies. $150
21D Failing to cause the business name and licence number to appear on a sign of reasonable size at every premises, and/or in every advertisement published by the operator or on his behalf. $150
22A(3) Failing to return a licence or certificate of registration upon cancellation of an authorisation. $150
23(1) Failing to notify the Commissioner of a change in the membership of a licensed firm. $200
23(2) Failing to notify the Commissioner of a change in the membership of a licensed body corporate. $200
24(3) Being a licensed salesperson or yard manger, failing to notify the Commissioner of a change in residential address. $150
25(1) Failing to have a register in the prescribed form at every authorised premises. $500
25(1a) Failing to have a register in the prescribed form (financiers and car hire operators). $500
25(2a) Failing to have a register in the prescribed form (car market operators). $500
25(2e) Making, or causing to be made, a false entry, in the register kept by a licence holder. $100
26(1) Failing to immediately notify the licensing authority of the acquisition or sale of a second-hand vehicle, and if the vehicle is not licensed in WA, fail to forthwith return the number plates. $200
26(2) Failing to return the number plates of a second-hand vehicle where the licence has expired or is cancelled. $200
27(3) Keeping a second-hand vehicle elsewhere than at the premises. $500
28(10) Failing to comply with an order to remedy defects or surrender number plates. $200
28(11) Removing, damaging or obliterating a remedy notice attached to a vehicle. $200
30(2) Carry on business at premises that was not in accordance with an authorisation or permit. $500
31A Acting as a yard manager without a licence. $1,000
31B Acting as a salesperson without a licence. $1,000
31C Employing an unlicensed yard manager or salesperson. $1,000
31D(2) Carrying on business at a premise that is not an authorised premise. $500
32B(1) Failing to follow requirements when accepting a vehicle under a consignment agreement. $500
32B(3) Failing to provide a copy of a consignment agreement to the consignor. $500
32C Accepting a vehicle for sale under a consignment agreement without holding a trust account. $500
32D(1) Failure to pay money from a consignment sale into a trust account within the required time. $500
32I(1) Failure to have trust account audited. $500
33(1) Offering for sale a second-hand vehicle without a notice in the prescribed form attached. $200
33(4) Inserting, or allowing to be inserted, a false or misleading statement, in a material particular. $500
33(7) Failing to complete and maintain required notices (e.g. Form 4, Form 6, etc) $100
40B(1) Being a licensed car market operator, allowing a vehicle to be displayed for sale without the required notice attached. $200
43(1) Failing to provide a purchaser with a written note stating the monetary value of the item used as a trade-in. $100
 

Motor Vehicle Dealers (Sales) Regulations 1974

 
14, relating to 10C(1) Failing to include required information in the name of a trust account. $200
14, relating to 10C(2) Failing to inform the Commissioner when a trust account is opened or closed. $200
14, relating to 10D(1) Failing to keep record of a trust account. $200
14, relating to 10E(1) Failing to provide a written receipt when money is received. $200
14, relating to 10H(1) Failing to appoint an auditor when opening a trust account. $200
14, relating to 11(2) Causing an advertisement to be published which fails to conform to regulatory advertising requirements. $200

Go to the Legislation WA website Copies of the Act and regulations can be downloaded or purchased from Legislation WA.

 

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