Vehicle Purchase Discussion Paper
Currently in NZ, only 28% of used motor vehicle sales are made by licensed motor vehicle dealers, and there are concerns about the lack of legal protection available for those who buy a second-hand car from unlicensed dealers. So, a discussion paper, 'Motor Vehicle Sales: A Proposed Regulatory Regime', concerning a proposed new Motor Vehicle Sales Act has been released and your feedback is sought.
The proposed new law would require all people operating as dealers to pay a fee and be registered, not just licensed dealers. That would include display-for-sale operators, car-fair operators, motor vehicle importers who sell more than six cars a year, and auctioneers who deal mainly in vehicles.
Other proposals in the paper include:
- banning people from becoming licensed dealers if they have convictions relating to dishonesty, including fraud and odometer tampering;
- establishing a list of people who would be banned from any involvement in the motor vehicle dealers trade;
- setting up a new, independent vehicle disputes tribunal, made up of a chairperson lawyer, a consumer representative and a technical expert (the tribunal would consider disputes under the Consumer Guarantees Act and Fair Trading Act);
- that consumers who buy from a registered dealer would still be guaranteed ownership and wouldn't face repossession if money is still owing on the vehicle by previous owners; and
- that financiers who lend on the security of vehicles will be protected through either insurance, performance bonds or a modified fidelity guarantee fund.
It's intended to report back to Cabinet in June and introduce new legislation shortly thereafter.
| Submissions close 28 March 2001, and should be sent to Karen Chant, Ministry of Economic Development, PO Box 1473, Wellington. Copies of the document can be downloaded from the Ministry website at www.med.govt.nz/buslt/bus_pol/motorsales/index.html |
Contact for Enquiries
The Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 00 83 33
Fax: +64 4 894 0720
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