Proposals for Reform of the Regulation of Motor Vehicle Consignment Sales Decision Regulatory Impact Statement (DRIS)

The review under the Motor Vehicle Dealers Act 1973 (WA) (MVDA) has been completed.

The review considered whether these arrangements should continue in their current form.

This paper outlines the findings of the review and the key recommendations for reform. These key reforms are:

• Introduce a new category of dealer’s licence relating to consignment sales.
• Update the motor vehicle dealers licensing course to improve training on consignment selling.
• Apply additional good character and “fit and proper person” licensing criteria for dealers who engage in consignment selling (including assessment of an applicant’s close associates).

Go to the motor vehicles consignment sales reform page https://www.commerce.wa.gov.au/consumer-protection/motor-vehicles-consignment-sales-reform

Contents

The paper includes:

• Executive Summary
• 1. Introduction
  • 1.1 Statement of the Issue
  • 1.2 Review process
  • 1.3 Stakeholder response to the CRIS
• 2. Background
  • 2.1 Legislation that applies to consignment selling
  • 2.2 Profile of the motor consignment selling market in WA
  • 2.3 Complaints relating to consignment selling
• 3. Assessment of options and impact analysis
  • 3.1 Option A – Retain the status quo
  • 3.2 Option B – Retain consignment selling but strengthen contract arrangements, licensing eligibility requirements and training
  • 3.3 Option C – Ban consignment selling
• 4. Preferred option
• 5. Implementation and evaluation
  • 5.1 Implementation
  • 5.2 Evaluation