Four-car threshold deemed trader rule. Section 7A catches individuals who are not in business as motor car traders but who buy and sell cars frequently. Selling four or more cars in 12 months triggers the deemed trader classification and the licensing requirement. Car enthusiasts, fleet sellers, and estate administrators need to be aware of this threshold.
Cooling-off days are clear business days, not calendar days. Section 43(1A) defines clear days for the cooling-off period to exclude Saturdays, Sundays and public holidays. A buyer who signs on a Friday and attempts to withdraw on Tuesday may still be within the cooling-off period, even though four calendar days have passed. Traders who count incorrectly risk liability for refusing a valid termination.
Termination charge formula differs for new and used cars. The permitted termination charge is the greater of $100 or 1% for used cars, and the greater of $400 or 2% for new cars. Retaining more than the permitted amount is a breach of the Act.
Roadworthiness certificate must be current. Section 42A defines "current" as issued within the last 30 days. A certificate that was valid at a previous time is not sufficient. Traders must ensure the certificate is fresh at the time of sale.
Collateral credit agreements are automatically discharged. When a buyer validly exercises the cooling-off right, collateral credit agreements arranged by the trader are automatically discharged (s 43(4)(b)-(c)). Traders who try to argue that the finance arrangement survives independently of the sale agreement are wrong.