National Priority 5

Motor Vehicles and Boats

The focus of this priority is the sale of motor vehicles to Indigenous consumers. However, many of the same issues relate to the sale of boats in coastal communities.

In remote areas there is a high demand and need for mobility. The purchase of a motor vehicle or a boat is seen as a priority.

Indigenous consumers are particularly vulnerable in remote areas because of a lack of competition and enforcement of consumer protection laws regarding the sale of motor vehicles and boats.

The sale of overpriced and unroadworthy vehicles to Indigenous communities is common, especially when royalty money is distributed. Indigenous consumers also have specific problems in financing purchases both through the use of formal credit (such as loans) and informal credit such as book up.

IssuesActions
Responsibility
Timeline
Exploitative supply and sale of motor vehicles and in some cases boats, including differential pricing, overpriced and unroadworthy cars and unlicensed dealing.

Indigenous consumers experience difficulties in asserting their rights under statutory warranties and in many cases cars purchased by Indigenous consumers are not protected by statutory warranty.

Sale of expensive and inappropriate finance, insurance products and add ons, for example, extended warranties and rust proofing.

Recognising that legislation is a matter for governments, State and Territory consumer agencies will seek to ensure that:

  • legislation provides for a common safety/roadworthy or defect certificate to be provided when veicles are offered for sale;
  • legislation provides for warranties to be linked to kilometres/age rather than price of vehicle;
  • civil as well as criminal enforcement options are available for breaches of laws regulating motor vehicle dealers and sales;
  • legislation requires vehicles under a statutory warranty to be assessed and repaired at the trader’s expense and that there is no obligation on the consumer to return the car to the trader; and
  • legislation requires dealers to display prices (full prices including dealer delivery) on cars offered for sale.
State and Territory consumer agencies to make recommendations to governments for legislation, or amendments to legislation, where necessary.
Ongoing.