Car buyers in Victoria will be better protected under amendments to the Motor Car Trader's Act designed to reduced bureaucratic ‘red tape’ for buyers and for LMCTs. The new system is backed by the Victorian Automobile Chamber of Commerce (VACC).
The changes will take some of the regulatory burden out of car purchasing, while also, according to the Victorian Minister for Consumer Affairs, Heidi Victoria, "enhance protections for purchasers”.
The new system will save around $1 million annually, and provide buyers with clearer documentation when buying from a Licensed Motor Car Trader (LMCT).
VACC and LMCT members worked with Victoria’s State Government on the new legislation.
The state government, VACC and LMCT members, Consumer Affairs Victoria and Red Tape Commissioner John Lloyd discussed a range of measures currently impacting on dealers, leading to a list of improvements due to begin later this year.
“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,” VACC Executive Director, David Purchase, said.
“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.”
Mr Purchase said the three-day cooling-off period alone was a big win for motorists, but the new scheme contains further improvements and cuts to red tape.
“[Minister for Consumer Affairs, Heidi Victoria] deserves credit for listening to industry, assisting small business and showing decisive leadership. We look forward to working with the Government on more red-tape-cutting opportunities,” Mr Purchase said.
The changes were confirmed in the recent Consumer Affairs Legislation Amendment Bill 2014, which addresses a number of business duplication and compliance issues. The new system comes into effect on November 1, 2014.