New rules for written off car sales

PIC: Consumer Protection WA

New regulations have been announced to protect consumers when buying second-hand cars from dealerships.

Under the new laws, car dealers in Western Australia will be required to advise buyers if the vehicle they're selling had previously been written off. 

The dealers will need to disclose if a second-hand vehicle under 15-years-old is a repairable-write off. 

The new regulations, coming into effect on June 7, come following a surge of complaints from buyers. 

Even when these vehicles are deemed repairable, there may often be other unknown issues with the vehicle and consumers may struggle to get full insurance coverage. 

WA dealers who fail to make this disclosure will face a $2,000 fine and any information deemed false or misleading on the sale could attract a $5,000 penalty. 

Commerce Minister Sue Ellery says anyone buying a second-hand vehicle should be fully informed about their purchase. 

"Every used car buyer has a right to know that the vehicle they have chosen is safe, reliable, and fit for purpose. Making it illegal for dealers to not disclose whether a vehicle is a repairable write-off will go a long way towards achieving this goal," Ellery said. 

"These changes will also help build trust between consumers and dealers through added transparency."

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