Motor Car Traders Regulations 2018 (Victoria)

These Regulations prescribe forms, exemptions, record-keeping, advertising and sale practices, warranty particulars and a schedule of infringement offences and penalties for motor car traders under the Motor Car Traders Act 1986 (the Act). The objective is expressed in regulation 1: to prescribe exemptions, forms, prohibited conduct, agreements, matters relating to warranties and other matters under the Act (reg 1). The Regulations operate from 1 September 2018 (reg 3) and are made under s 90 of the Act (reg 2). They revoke the prior Motor Car Traders Regulations 2008 and specified amendment instruments (reg 4).

Mechanically, the instrument does the following (sample of core mechanics, with citations):

Defines terms and cross-references other statutes for meanings (reg 5). Examples: Australian Business Number, compliance date, trade auction, truck (reg 5).
Declares when two businesses count as associated businesses for the Act’s purposes (reg 6).
Lists narrow classes of sales exempted from operation of the Act (reg 7).
Prescribes mandatory forms, signs and the precise contents required in them (Part 2; Forms in Schedule 1). The prescribed sign for licensed motor car traders is Form 1 (reg 8; Schedule 1, Form 1). The dealings book format is Form 2 (reg 9; Schedule 1, Form 2). Forms 3 to 7 are prescribed for declarations, notices, defect statements, verification and embargo notices (regs 10-15; Schedule 1, Forms 3-7).
Sets specific conduct obligations for traders and their agents, including supervisory duties (reg 17), mandatory display of "LMCT" plus licence number in adverts (reg 18), and minimum information required in advertisements of used cars, including a single price inclusive of fees and duties and identification numbers (reg 19).

Version No. 001

Motor Car Traders Regulations 2018

S.R. No. 94/2018

Version as at
1 September 2018

TABLE OF PROVISIONS

Regulation Page

Part 1—Preliminary 1

1 Objective 1

2 Authorising provision 1

3 Commencement 1

4 Revocations 1

5 Definitions 2

6 Meaning of associated business 3

7 Exemptions 4

Part 2—Forms 6

8 Prescribed sign 6

9 Dealings book 6

10 Declaration of eligibility of potential employees 8

11 Form of notice to be displayed on used motor car 8

12 Form of notice of absence of warranty 9

13 Form of defect notice 9

14 Statement verifying document to inspector 9

15 Inspectors' powers forms 9

Part 3—Conduct by motor car traders 10

16 Prescribed changes in relation to licensee 10

17 Trader to supervise servants and agents 10

18 Advertisement or statement in relation to motor car trading business 11

19 Advertisement offering used motor car for sale 11

20 Advertisement—used motor car for sale by person other than motor car trader 12

21 Manner of advertisement or statement 13

22 Deposit given before tests to be returned 14

Part 4—Agreements and warranties 15

23 Agreement for sale of used motor car 15

24 Agreement for sale of new motor car 15

25 Terms relating to certain matters to be in sale agreement 15

26 Warranties 16

27 Display of information—agreements and warranties 17

Part 5—Miscellaneous 18

28 Maximum payment on a claim 18

29 Documents, accounts and records to be kept 18

30 Motor car traders must supply copies of agreements etc. 18

31 Infringement notices and infringement penalties 19

Schedule 1—Forms 20

Schedule 2—Particulars, terms and conditions for sale of used motor car 30

Schedule 3—Particulars for sale of new motor car 36

Schedule 4—Infringement offences and infringement penalties 38

═════════════

Endnotes 40

1 General information 40

2 Table of Amendments 42

3 Amendments Not in Operation 43

4 Explanatory details 44

Version No. 001

Motor Car Traders Regulations 2018

S.R. No. 94/2018

Version as at
1 September 2018

Part 1—Preliminary

1 Objective

The objective of these Regulations is to prescribe exemptions, forms, prohibited conduct, agreements, matters relating to warranties and other matters under the Motor Car Traders Act 1986.

2 Authorising provision

These Regulations are made under section 90 of the Motor Car Traders Act 1986.

3 Commencement

These Regulations come into operation on 1 September 2018.

4 Revocations

The following Regulations are revoked—

(a) the Motor Car Traders Regulations 2008[1];

(b) the Motor Car Traders Amendment Regulations 2010[2];

(d) the Motor Car Traders Amendment (Red Tape Reduction) Regulations 2014[4];

(e) the Motor Car Traders Amendment Regulations 2017[5].

5 Definitions

In these Regulations—

associated business has the meaning given by regulation 6;

auction business, in relation to a used motor car, means a business selling, or offering to sell, the motor car by auction in the course of its business;

Australian Business Number has the same meaning as in the A New Tax System (Australian Business Number) Act 1999 of the Commonwealth;

compliance date means the date stamped on a vehicle's compliance plate in accordance with the Motor Vehicle Standards Act 1989 of the Commonwealth;

LMCT means a licensed motor car trader;

police check means a certificate from the Chief Commissioner of Police that indicates that the person is not ineligible to be employed by a motor car trader in a customer service capacity under section 35A(1)(b) of the Act;

publish means to make generally known by any means, including by means of print, broadcast or electronic communication;

relevant financial interest, in relation to a business, means—

(a) any share in the capital of the business; or

(b) any entitlement to receive any income derived from the business; or

relevant position, in relation to a business, means the position of director, manager or other executive position or secretary, however that position is designated;

relevant power, in relation to a business, means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—

(a) to participate in any directorial, managerial or executive decision in the business; or

(b) to elect or appoint any person to any relevant position in the business;

the Act means the Motor Car Traders Act 1986;

trade auction means an auction at which only licensed motor car traders or persons acting on their behalf may bid;

truck has the same meaning as in the Road Safety Act 1986.

6 Meaning of associated business

For the purposes of these Regulations, businesses are associated businesses if—

(a) they are carried on by the same person; or

(b) one business is carried on by a person and the other business is carried on by another person who is—

(i) a spouse or domestic partner of that person; or

(ii) a business partner of that person; or

(iii) directly receiving any income derived from the business carried on by that person; or

(i) is a director or secretary of the body corporate or a spouse or domestic partner of such a director or secretary; or

(ii) holds or will hold any relevant financial interest, or is or will be entitled to exercise any relevant power (whether in the person's own right or on behalf of any other person), in the business of the body corporate under which the person is able or will be able to exercise a significant influence over or with respect to the management or operation of that business; or

(iii) holds or will hold any relevant position (whether in the person's own right or on behalf of any other person) in the business of the body corporate; or

(iv) is a related body corporate within the meaning of section 9 of the Corporations Act or a director or secretary, or a spouse or domestic partner of such a director or secretary, of a related body corporate.

7 Exemptions

(1) The following classes of sales are exempt from the operation of the Act—

(a) the sale at a public auction of a motor car owned or used by a Council within the meaning of the Local Government Act 1989;

(b) the sale at a public auction of a motor car owned by the executor or administrator of the estate of a deceased person;

(i) that at the time of the auction is damaged, if the reasonable cost to repair the damage would be more than $4800 or would exceed the value of the motor car; and

(ii) that is owned by a person who carries on the business of insuring motor cars if the motor car is sold in the course of that business.

(2) Motor cars other than used motor cars are exempt from the operation of section 35(1) of the Act.

(3) Sales at public auction of damaged motor cars, recovered stolen motor cars and trucks are exempt from the operation of section 50G(1)(b) of the Act.

(4) Sales of damaged motor cars, recovered stolen motor cars and trucks are not exempt for the purposes of subregulation (3) if the car or truck is owned by the auction business or by an associated business.

(5) AKN Pty Ltd ACN 120 745 851 is exempt from the operation of the Act.

Part 2—Forms

8 Prescribed sign

For the purposes of section 34 of the Act—

(a) the prescribed form is Form 1 set out in Schedule 1; and

(b) the prescribed particulars are set out in Form 1 in Schedule 1.

9 Dealings book

(1) For the purposes of section 35(1) of the Act, the prescribed form of the dealings book is Form 2 set out in Schedule 1.

(2) For the purposes of section 35(2)(a) of the Act—

(a) the prescribed matters required to be entered in the dealings book at the time of acquisition by way of purchase or exchange of a used motor car or at the time of receiving a used motor car into custody or possession for the purpose of sale or exchange are set out in Form 2 in Schedule 1 under the heading "ACQUISITION DETAILS"; and

(b) the prescribed matters required to be entered in the dealings book at the time of disposal by way of sale or exchange of a used motor car are set out in Form 2 in Schedule 1 under the heading "DISPOSAL DETAILS".

(3) For the purposes of section 35(8)(a)(i) of the Act the prescribed manner is—

(a) in the case of a motor car acquired from a natural person, that the paper document contains the full name and residential address of that person; or

(b) in the case of a motor car acquired from a business, that the paper document contains the name, address of the principal place of business and the Australian Business Number of that business.

(4) For the purposes of section 35(8)(a)(ii) of the Act, the prescribed manner is that the paper document contains—

(a) in the case of an auctioneer who is a natural person, the name and address of the auctioneer; or

(b) in the case of an auctioneer who is an auction business, the name, address of the principal place of business and the Australian Business Number of the auction business.

(5) For the purposes of subregulations (3) and (4), a paper document must record the following in respect of the specified motor car—

(a) the registration number of the motor car;

(b) the motor car trader's stock number;

(6) For the purposes of section 35(8)(b) of the Act, the prescribed manner is that the following information recorded in the paper document is recorded in the dealings book—

(a) the registration number of the motor car;

(b) the motor car trader's stock number;

(7) For the purposes of section 35(8)(a) and (9)(b) of the Act, a paper document is signed as prescribed—

(a) in the case of a motor car that is acquired from a natural person, if it is signed by that person; or

(b) in the case of a motor car that is acquired from a business, if it is signed by a person authorised to sign on behalf of that business; or

(c) in the case of a motor car that is acquired at auction, if it is signed by a person authorised to sign on behalf of the auction business.

10 Declaration of eligibility of potential employees

For the purposes of section 35A(3) of the Act, the prescribed form of the notice is Form 3 set out in Schedule 1.

11 Form of notice to be displayed on used motor car

(1) For the purposes of section 52(1) and (2)(g) of the Act, the prescribed form of the notice and the prescribed particulars are in Part B of Form 4 set out in Schedule 1.

(2) A notice referred to in subregulation (1) must—

(a) be printed, typed or written in a clear and legible manner; and

(b) if it contains an advertisement display the advertisement within a border
under a printed or typed heading "ADVERTISEMENT" that is the most prominent text in the document; and

12 Form of notice of absence of warranty

For the purpose of section 54(2C) of the Act, the required form of notice is Part A of Form 4 set out in Schedule 1.

13 Form of defect notice

For the purposes of section 55(1) of the Act, the prescribed form is Form 5 set out in Schedule 1.

14 Statement verifying document to inspector

For the purposes of section 82AA(1B) of the Act, the prescribed statement is Form 6 set out in Schedule 1.

15 Inspectors' powers forms

For the purposes of section 82AM(1) of the Act, the prescribed form is Form 7 set out in Schedule 1.

Part 3—Conduct by motor car traders

16 Prescribed changes in relation to licensee

For the purposes of section 20(1)(c) of the Act, a prescribed change is if—

(a) a licensee ceases to carry on business as a motor car trader under a name authorised under a licence; or

(b) a licensee commences carrying on business as a motor car trader under a name or names in addition to or in substitution for the name of the licensee; or

(c) a licensee changes the business address or telephone number of any premises from which a motor car trading business is conducted; or

(d) a licensee changes the address of any Internet site maintained by the licensee for the purpose of the motor car trading business; or

(e) there is a change in the majority shareholding of a body corporate that is a licensee; or

(f) a person ceases to be or is appointed as a company secretary of a body corporate that is a licensee; or

(g) a person ceases to be or is appointed as a manager of the motor car trading business.

17 Trader to supervise servants and agents

A motor car trader must supervise and control each servant and agent of the motor car trader to ensure that the provisions of the Act and these Regulations are complied with.

Penalty: 10 penalty units.

18 Advertisement or statement in relation to motor car trading business

A motor car trader, or a servant or agent of the trader, who publishes or causes to be published an advertisement or statement in relation to the trader's business of trading in motor cars must include in the advertisement or statement the letters "LMCT" followed by the licence number of the motor car trader.

Penalty: 10 penalty units.

19 Advertisement offering used motor car for sale

(1) A motor car trader, or a servant or agent of the trader, who publishes or causes to be published an advertisement offering a used motor car for sale must include the following information in the advertisement—

(a) the single price of the motor car, inclusive of all fees and duties;

(b) if the motor car is registered, the registration number;

(i) the vehicle identification number; or

(ii) in the case that the vehicle identification number is not reasonably ascertainable, any other number by which the motor car may be identified.

Penalty: 10 penalty units.

(2) Subregulation (1)(a) does not apply if the used motor car is being advertised for sale by public auction or at a trade auction.

(3) Subregulation (1)(b) and (c) do not apply if—

(a) the motor car trader, servant or agent publishes or causes to be published an advertisement on television, movie film, radio or in any other electronic and broadcast communication offering for sale a batch of 6 or more used motor cars of the same model; or

(b) the used motor car is being advertised for sale by public auction or at a trade auction and the information referred to in subregulation (1)(b) and (c) is provided in writing to a person attending the auction on request.

(4) A used motor car referred to in subregulations (2) and (3)(b) does not include a motor car owned by the auction business or an associated business or a motor car that is available for purchase before the auction.

20 Advertisement—used motor car for sale by person other than motor car trader

(1) A person, other than a motor car trader or a servant or an agent of a motor car trader, who publishes or causes to be published an advertisement offering a used motor car for sale in a newspaper generally circulating in the whole or any part of Victoria or in a motor car specialist magazine generally circulating in the whole of Victoria must include the following information in the advertisement—

(a) the single price of the motor car, inclusive of all fees and duties;

(b) if the motor car is registered, the registration number;

(i) the vehicle identification number; or

(ii) in the case that the vehicle identification number is not reasonably ascertainable, any other number by which the motor car may be identified.

Penalty: 10 penalty units.

(2) Subregulation (1)(a) does not apply if the used motor car is being advertised for sale by public auction or at a trade auction.

(3) Subregulation (1)(b) and (c) do not apply if the used motor car is being advertised for sale by public auction or at a trade auction and the information referred to in subregulation (1)(b) and (c) is provided in writing to a person attending the auction on request.

(4) A used motor car referred to in subregulations (2) and (3) does not include a motor car owned by the auction business or an associated business or a motor car that is available for purchase before the auction.

21 Manner of advertisement or statement

A person who publishes or causes to be published an advertisement or statement referred to in regulation 18, 19 or 20 must ensure that any text included in the advertisement or statement is printed, typed or written in a clear and legible manner.

Penalty: 10 penalty units.

22 Deposit given before tests to be returned

(1) If a person—

(a) deposits with a motor car trader money or something of value and takes possession of a motor car for the purpose of a driving trial or an examination or test; and

(b) subsequently returns the motor car and does not enter into an agreement to purchase it—

the motor car trader must refund or return the money or valuable thing to the person immediately on demand by that person.

Penalty: 10 penalty units.

(2) If a purchaser—

(a) enters into a conditional agreement with a motor car trader to purchase a motor car; and

(b) deposits with the motor car trader money or something of value prior to a driving trial or an examination or test; and

the motor car trader must refund or return the money or valuable thing to the purchaser immediately on demand by that purchaser.

Penalty: 10 penalty units.

Part 4—Agreements and warranties

23 Agreement for sale of used motor car

For the purposes of section 41(1)(a) of the Act, the prescribed particulars, terms and conditions are set out in Schedule 2.

Note

A motor car that has been displayed for sale or registered under the Road Safety Act 1986 for the purpose of carrying out demonstrations is a used motor car. See the definition of used motor car in section 3(1) of the Act.

24 Agreement for sale of new motor car

For the purposes of section 42(1) of the Act, the prescribed particulars are set out in Schedule 3.

25 Terms relating to certain matters to be in sale agreement

If a motor car trader enters into an agreement for the sale of a used motor car and agrees as part of the agreement—

(a) to have defects in the motor car repaired or made good; or

(b) to supply and fit any part or accessory to the motor car; or

(c) to register or reregister the motor car or in any other respect to pay an amount or make an arrangement regarding the registration, duty or insurance relating to the motor car—

the motor car trader must ensure that the terms of the agreement as to the matters referred to in paragraph (a), (b) or (c) are set out in writing in the agreement.

Penalty: 10 penalty units.

26 Warranties

For the purposes of section 54(4)(d) of the Act, the prescribed accessories are the following—

(a) radios;

(b) cassette players;

(d) telephones and in-car telephone kits;

(e) car aerials;

(f) clocks;

(g) cigarette lighters;

(h) body hardware that is not standard to the motor car;

(i) power outlets, including cigarette lighter sockets;

(j) tools other than jacks and wheel braces;

(k) light globes;

(l) sealed beam lights;

(m) fog lights that are not standard to the motor car;

(n) alarms that are not standard to the motor car;

(o) digital video disc players and video display panels;

(p) MP3 and MP4 players and docks;

(q) global positioning systems and satellite navigation systems;

(r) other computerised navigation systems;

(s) keyless entry systems and remote key pads that are not standard to the motor car.

27 Display of information—agreements and warranties

A motor car trader who enters into an agreement for the sale of a used motor car under section 41 of the Act or the sale of a new motor car under section 42 of the Act must ensure that any text included in the agreement is printed, typed or written in a clear and legible manner.

Penalty: 10 penalty units.

Part 5—Miscellaneous

28 Maximum payment on a claim

For the purposes of section 77(4)(a) of the Act, the prescribed amount is $40 000.

29 Documents, accounts and records to be kept

The following documents, accounts and records are to be kept by licensed motor car traders—

(a) agreements for sale of a used motor car under section 41 of the Act;

(b) agreements for sale of a new motor car under section 42 of the Act;

(d) extended warranty documents;

(e) police checks given to the motor car trader by persons employed in a customer service capacity;

(f) any completed forms in the form of Form 2, 3, 4 or 5 as set out in Schedule 1.

30 Motor car traders must supply copies of agreements etc.

For the purposes of section 83C(1) of the Act, the following documents are listed—

(a) agreements under section 41 of the Act;

(b) agreements under section 42 of the Act;

(d) extended warranty documents;

(e) police checks given to the motor car trader by a person employed in a customer service capacity;

(f) any completed forms in the form of Form 3, 4 or 5 as set out in Schedule 1.

31 Infringement notices and infringement penalties

(1) For the purposes of section 82D(1) of the Act, an offence specified in Column 2 of Schedule 4 is an offence in respect of which an infringement notice may be issued.

(2) For the purposes of section 82D(3) of the Act, the prescribed infringement penalty for an infringement offence set out in Column 2 of Schedule 4 is the penalty set out in Column 3 of Schedule 4 in respect of the corresponding infringement offence.

Schedule 1—Forms

Form 1

Regulation 8

Motor Car Traders Act 1986

Prescribed Sign

LICENSED MOTOR CAR TRADER (or LMCT)

[Insert licensee's licence number]

Form 2

Regulation 9

Motor Car Traders Act 1986

Dealings Book

ACQUISITION DETAILS

Registration number of the motor car or, if unregistered, trader's stock number

Make/model

Type of vehicle

Built date if it appears on the vehicle

Compliance date

Vehicle identification number (if the vehicle identification number is not available, any other number capable of identifying the vehicle)

Date of acquisition

Odometer reading

*Name and address of person from whom vehicle acquired

*Name and address of auction business from which vehicle acquired

Security interest (if any) held by

Security interest (if any) amount paid out in discharge

Date security interest paid (if any)

*Signature of person from whom vehicle acquired

*Signature of person authorised to sign on behalf of the auction business from which vehicle acquired or received

*delete whichever is inapplicable

DISPOSAL DETAILS

Sold to (name and address)

Date of delivery

Odometer reading

Certificate of roadworthiness (issued in accordance with the Road Safety Act 1986)

—Certificate number

—Certificate date

Date notice of acquisition sent to VicRoads

Date notice of disposal sent to VicRoads

Date registration cancelled and plates returned (if applicable)

Form 3

Regulation 10

Motor Car Traders Act 1986

Notice to Motor Car Trader by Prospective Person Employed in a Customer Service Capacity

Declaration of eligibility to be employed in a
customer service capacity

[insert name of person to be employed]

[insert residential address of person to be employed]

declare that I—

(*delete whichever is not applicable)

(a) *have/*have not had a claim admitted against the Motor Car Traders' Guarantee Fund (note: see paragraph (c) below); and

(b) *am/*am not or *was/*was not a partner or director of, or person concerned in the management of, a partnership or body corporate that has had a claim admitted against the Motor Car Traders' Guarantee Fund in relation to an act or omission that occurred at a time I was a partner or director of, or a person concerned in the management of, the partnership or body corporate (note: see paragraph (c) below); and

(c) *have/*have not obtained permission under section 29A of the Motor Car Traders Act 1986 in relation to a claim or claims referred to in paragraphs (a) and (b) above; and

[please specify further details of permission obtained.]

(d) *have/*have not, within the last 10 years, been found guilty or convicted of a disqualifying or serious offence involving fraud, dishonesty, drug trafficking or violence (whether or not a conviction was recorded) (note: see paragraph (e) below); and

(e) *have/*have not obtained permission under section 29B of the Motor Car Traders Act 1986 in relation to an offence involving fraud, dishonesty, drug trafficking or violence referred to in paragraph (d) above; and

[please specify further details of permission obtained.]

(f) *am/*am not for the time being disqualified from holding a motor car trader's licence; and

(g) *am/*am not for the time being disqualified from being employed in any capacity in connection with the business of a motor car trader (regardless of whether or not motor car traders are referred to by that name in the relevant jurisdiction).

Signature of proposed employee making the declaration

[Print full name]

Date

Note: Under section 84A(1) of the Motor Car Traders Act 1986 it is an offence punishable by a fine of 50 penalty units in the case of a natural person and 100 penalty units in the case of a corporation to make a false or misleading statement or omission in this declaration. Under section 35A(3) of the Motor Car Traders Act 1986, a motor car trader must receive a completed declaration from a person before that person is employed in a customer service capacity by the trader. Also, under section 35A(4) of the Motor Car Traders Act 1986, a person is disqualified from being employed in a customer service capacity by a motor car trader unless the person gives the trader a police check. The police check and this form must be retained for at least 6 years, in accordance with section 83A of the Motor Car Traders Act 1986.

Form 4

Regulations 11 and 12

Motor Car Traders Act 1986

PART A—USED MOTOR CAR WARRANTY

Warranty Information Is this motor car automatically covered by a statutory warranty under section 54 of the Motor Car Traders Act 1986? □ Yes □ No Please note Motor cars that are less than 10 years old and that have been driven less than 160 000 km are automatically covered by a statutory warranty under section 54 of the Motor Car Traders Act 1986 for the first 3 months or 5000 km after delivery, whichever occurs first. If this motor car is not automatically covered by the statutory warranty, the motor car trader does not have any obligation under the Motor Car Traders Act 1986 to repair or make good any defects after delivery. However, the trader may have other obligations under other legislation including the Australian Consumer Law (Victoria).

PART B—USED MOTOR CAR NOTICE

A. Name and business address of the current owner of the motor car.

B. If the motor car is equipped with an odometer, the distance travelled by the motor car entered by the motor car trader in the dealings book when the trader acquired the motor car or received custody or possession of the motor car for the purpose of sale (as the case may be).

C. Except in the case of a motor car offered or displayed for sale at a public auction, the cash price of the motor car, a statement that the cash price does not include transfer fees or duty and a statement of whether the car is sold with registration or without registration.

D. The single price of the motor car, inclusive of all fees and duties.

E. Built date if it appears on the motor car.

F. Compliance date.

G. The model designation (if any) of the motor car.

H. Registration number (if any) of the motor car.

I. The vehicle identification number of the motor car.

J. If the vehicle identification number is not available, another number capable of identifying the motor car.

K. A statement as to whether the motor car is entered on the register of written-off vehicles or on an interstate written-off vehicles register within the meaning of the Road Safety Act 1986.

Signature of motor car trader:

LMCT No.:

Signature of purchaser:

AFFIX TO RIGHT SIDE WINDOW (rear where applicable)

Note: On the sale of the motor car the purchaser must sign and be given a copy of this form under sections 52(6) and 83C(1) of the Motor Car Traders Act 1986 and regulation 11 of the Motor Car Traders Regulations 2018.

Form 5

Regulation 13

Motor Car Traders Act 1986

Section 55

Statement of Defects in a Used Motor Car Offered for Sale

Make and model of motor car:

Registration number (if applicable):

Vehicle identification number, or if vehicle identification number is not reasonably ascertainable, any other number by which the motor car may be identified:

Trading name and LMCT No.:

Description of defect	Estimate of fair cost of repairing or making good

Any items listed on this notice are NOT subject to a warranty under section 54 of the Motor Car Traders Act 1986.

Signature of purchaser: Signature of motor car trader:

Licence or LMCT No.:

Notes:

This notice will only have effect if—

(a) at all material times it has been attached to the motor car; and

(b) at or before the time of sale a copy of the notice has been signed by the purchaser; and

(c) on the sale a true copy of the notice as so signed has been delivered to the purchaser for retention by that purchaser; and

(d) the estimate by the motor car trader of the fair cost of repairing or making good the defect is reasonable.

Form 6

Regulation 14

Motor Car Traders Act 1986

Statement OF VERIFICATION

To: Inspector [specify inspector's name]:

I, [insert name] in relation to [insert name and address of principal place of business/former business], [insert licence number/former licence number], verify that the document produced to you on [insert date] in accordance with section 82AA(1B) of the Motor Car Traders Act 1986 is a true record of the dealings book as at the date of this statement.

Form 7

Regulation 15

Embargo Notice

Motor Car Traders Act 1986

Section 82AM

The item described below has been embargoed under section 82AM of the Motor Car Traders Act 1986.
Section 82AM(2) provides that a person who knows that an embargo notice relates to a thing and who—

(a) sells; or

(b) leases; or

(d) transfers; or

(e) otherwise deals with—

the thing or any part of the thing is guilty of an offence and liable to a penalty not exceeding 50 penalty units.

Section 82AM(3) provides that it is a defence to a prosecution for such an offence to prove that the thing or part of the thing was moved for the purpose of protecting and preserving it.
Section 82AM(4) provides that despite anything in any other Act, a sale, lease, transfer or other dealing with a thing in contravention of that section is void.

Description of embargoed item—

This notice has been—

□ served on [insert name]

□ affixed to the item described above

Signature of inspector:

Name of inspector:

Telephone number: Date: Time:

Schedule 2—Particulars, terms and conditions for sale of used motor car

Regulation 23

IMPORTANT INFORMATION—YOUR RIGHT TO COOL OFF

Motor Car Traders Act 1986

Section 43

Under section 43 of the Motor Car Traders Act 1986, if none of the exceptions listed below applies to you, you may end this contract within 3 clear business days of the day that you sign the contract.

To end the contract within this time, you must give the motor car trader or the motor car trader's agent written notice that you are terminating the contract.

If you end the contract in this way, you are entitled to a refund of all the money you paid EXCEPT $100 or 1 per cent of the purchase price (whichever is greater).

EXCEPTIONS—the 3-day cooling-off period does not apply if—

the vehicle being sold is a commercial vehicle; or
you are a motor car trader; or
you are a body corporate; or
you accept delivery of the vehicle within the cooling-off period.

IF YOU CHOOSE TO ACCEPT DELIVERY OF THIS VEHICLE WITHIN THE COOLING-OFF PERIOD, YOU WILL AUTOMATICALLY LOSE YOUR RIGHT TO COOL OFF

A. Particulars

(1) The name of the motor car trader or, if an employee of the motor car trader negotiated the agreement on behalf of the motor car trader, the name of the employee.

(2) A description of the motor car sufficient to identify it.

(3) Whichever of the following is applicable—

(a) if the motor car is registered, the registration number;

(b) if the motor car is unregistered—

(i) the vehicle identification number; or

(ii) if the vehicle identification number is not reasonably ascertainable, any other number by which the motor car may be identified.

(4) The price and any other charges to be paid and the time and manner in which the price and any other charges are to be paid and, where a motor car or other goods are to be accepted as part payment of the price or other charges, the amount agreed to be represented by the motor car or other goods.

(5) The amounts to be paid by the motor car trader or the purchaser to VicRoads for transfer fees and duties, and if applicable an amount to be paid by the motor car trader or the purchaser to VicRoads for registration.

(6) The distance travelled by the motor car as recorded on the instrument or device installed in the motor car for recording the distance travelled by the motor car either when the purchaser signs the agreement or at any earlier time at which the purchaser takes delivery of the motor car.

(7) Whether or not the motor car trader believes the distance so recorded to be true.

(8) The licence number of the motor car trader.

(9) The serial number of the agreement.

B. Warranty Information

Warranty under section 54 of the Motor Car Traders Act 1986

Motor cars not more than 10 years old and that have been driven less than 160 000 km are covered by a warranty under section 54 of the Motor Car Traders Act 1986.

Is this motor car automatically covered by a statutory warranty under section 54 of the Motor Car Traders Act 1986?

□ Yes

□ No

**If the motor car is covered by the warranty**

The motor car trader warrants that if a defect appears in the motor car before the end of the warranty period, the motor car trader at the motor car trader's own expense—

(a) will arrange for the car to be taken to a place where it can be repaired or made good; and

(b) will repair or make good, or cause to be repaired or made good by another motor car trader or by a qualified repairer, the defect, so as to place the car in a reasonable condition having regard to its age.

The warranty period is whichever of the following periods is shorter—

(a) the period from when the motor car is delivered to the person buying it until it has been driven for a further 5000 kilometres;

(b) the period of 3 months from the day after the motor car is delivered to the person buying it.

The benefits to the consumer given by this warranty are in addition to other rights and remedies of the consumer under the Australian Consumer Law (Victoria).

If the motor car is not covered by the warranty

The motor car trader does not have any obligation under the Motor Car Traders Act 1986 to repair or make good any defects after delivery. However, the trader may have other obligations under other legislation including the Australian Consumer Law (Victoria).

Rights under the Australian Consumer Law (Victoria)

Our goods come with guarantees that cannot be excluded under the Australian Consumer Law (Victoria). You are entitled to a replacement or refund for a major failure and compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure.

C. Terms and conditions

Subject to finance

(1) Where this agreement is subject to the purchaser obtaining finance, the agreement is conditional on the purchaser obtaining finance approval—

(a) within the time stated in this agreement; and

(b) of the amount stated in this agreement; and

(d) for the type of finance stated in this agreement; and

(e) on reasonable terms and conditions in the circumstances.

(2) The purchaser agrees to take all reasonable steps towards obtaining finance approval.

(3) If the purchaser does not obtain finance approval then either the purchaser or the seller may terminate this agreement by giving notice to the other party.

Transfer to credit provider

Where requested by the purchaser the seller must transfer title of the purchase vehicle to the purchaser's credit provider on payment of the total purchase price to the seller.

Delays in delivery

(1) The seller must make every reasonable effort to make the purchase vehicle available for delivery on or before the delivery date stated in this agreement. Where delivery is delayed more than 14 days the purchaser may terminate this agreement by notifying the seller in writing, unless the delay is caused by the purchaser.

(2) The purchaser must take delivery of the purchase vehicle within 7 days of being notified by the seller that the vehicle is ready for delivery. If the purchaser fails to take delivery within this time the seller may terminate the agreement by notice in writing.

Trade-in conditions

(1) Where the purchase involves a trade-in vehicle then the amount allowed for the trade-in (net trade-in allowance) must be deducted from the total purchase price. The net trade-in allowance will be the amount allowed on the trade-in vehicle less any amount to be paid by the seller to discharge the interest of any other person in the vehicle.

(2) The trade-in vehicle must be delivered to the seller no later than the date of delivery of the purchase vehicle. If the trade-in vehicle is delivered after this date or is not in substantially the same condition as at the date of this agreement then the net trade-in allowance may be adjusted by an amount equal to the change in the fair market value of the trade-in vehicle between the date of this agreement and the date of delivery to the seller.

(3) The purchaser's interest in the trade-in vehicle must pass to the seller—

(a) when the purchaser accepts delivery of the purchase vehicle; or

(b) when the purchaser has delivered the trade-in vehicle to the seller and the seller has paid the net trade-in allowance to the purchaser or acknowledged in writing that this amount has been credited towards the total purchase price—

whichever first occurs.

(4) The seller must not, without the prior written consent of the purchaser, sell or agree to sell the trade-in vehicle before delivery of the purchase vehicle to the purchaser.

(5) Where the amount allowed on the trade-in vehicle has been reduced by an amount to be paid by the seller to discharge the interest of any other person in the vehicle, the seller will pay this amount to the other person within 28 days of delivery of the trade‑in vehicle to the seller.

Termination

(1) Where this agreement is lawfully terminated by the seller due to a breach of this agreement by the purchaser then—

(a) the purchaser must forfeit the amount stated in this agreement to the seller provided that amount does not exceed 5 per cent of the total purchase price; and

(b) where an amount has been paid towards the purchase price and that amount exceeds the forfeitable amount then the seller must—

(i) refund to the purchaser so much of the amount paid that exceeds the forfeitable amount; and

(ii) return any trade-in vehicle to the purchaser; and

(c) where an amount has been paid towards the purchase price and that amount does not provide the seller with the forfeitable amount and a trade-in vehicle has been delivered to the seller then the trade-in vehicle may be forfeited to the seller and the purchaser credited with the net trade-in allowance. If this amount and any other amount paid by the purchaser exceeds the forfeitable amount then the excess must be refunded to the purchaser.

(2) Where this agreement is lawfully terminated by the purchaser due to a breach of this agreement by the seller then the seller must—

(a) refund to the purchaser all money paid by or on behalf of the purchaser; and

(b) return any trade-in vehicle to the purchaser.

(3) Where this agreement is lawfully terminated by either the purchaser or the seller under clause l(3) or for any reason other than a breach of this agreement then the seller must—

(a) refund to the purchaser all money paid by or on behalf of the purchaser; and

(b) return any trade-in vehicle to the purchaser.

(4) Where this agreement provides for the seller to return any trade-in vehicle to the purchaser but the seller has, with the prior written consent of the purchaser, sold or agreed to sell the trade-in vehicle then this agreement will be complied with if the seller pays to the purchaser—

(a) an amount equal to the net trade-in allowance; or

(b) where the purchaser and seller have agreed on a value as the fair market value of the trade-in vehicle, that agreed value less any trade-in payout made or to be made by the seller.

(5) Where the seller returns any trade-in vehicle to the purchaser and the seller has carried out repairs on the vehicle with the consent of the purchaser then the seller is entitled to an amount equal to the reasonable cost of those repairs.

(6) Where either the purchaser or seller wishes to terminate this agreement in accordance with this clause they must give written notice to the other party of the decision to terminate.

(7) Nothing in this clause affects the rights and duties conferred by section 43 of the Motor Car Traders Act 1986.

Non-exclusion of warranties and other rights

The benefits conferred by this agreement and by the seller's warranty, if any, are in addition to all other rights and remedies in respect of the purchase vehicle which the purchaser has under the Australian Consumer Law (Victoria) and any other Commonwealth, State and Territory laws.

Note: The parties to this agreement may include other conditions if those conditions do not reduce the rights given to either party by or under the Motor Car Traders Act 1986.

Schedule 3—Particulars for sale of new motor car

Regulation 24

IMPORTANT INFORMATION—YOUR RIGHT TO COOL OFF

Motor Car Traders Act 1986

Section 43

To end the contract within this time, you must give the motor car trader or the motor car trader's agent written notice that you are terminating the contract.

If you end the contract in this way, you are entitled to a refund of all the money you paid EXCEPT—

$400 or 2 per cent of the purchase price (whichever is greater) where this is not an off-trade premises sale; or
$100 or 1 per cent of the purchase price (whichever is greater) where this is an off-trade premises sale. An "off-trade-premises" sale is one in which you agree to purchase the car while you are at home or at your workplace and you did not ask for the agreement to be signed at your home or workplace.

EXCEPTIONS—the 3-day cooling-off period does not apply if—

the vehicle being sold is a commercial vehicle; or
you are a motor car trader; or
you are a body corporate; or
you accept delivery of the vehicle within the cooling-off period.

IF YOU CHOOSE TO ACCEPT DELIVERY OF THIS VEHICLE WITHIN THE COOLING-OFF PERIOD, YOU WILL AUTOMATICALLY LOSE YOUR RIGHT TO COOL OFF

Particulars

(1) The name of the motor car trader or, if an employee of the motor car trader negotiated the agreement on behalf of the motor car trader, the name of the employee.

(2) A description of the motor car sufficient to identify it.

(3) The vehicle identification number or, if the vehicle identification number is not reasonably ascertainable, any other number by which the motor car may be identified.

(5) Where a motor car is to be accepted as part payment of the price or other charges and where the amount allowed on this trade-in vehicle has been reduced by an amount to be paid by the motor car trader to discharge the interest of any other person in the vehicle, the number of days after delivery of the trade-in vehicle to the trader within which the trader will pay this amount to the other person.

(6) The licence number of the motor car trader.

(7) The serial number of the agreement.

Schedule 4—Infringement offences and infringement penalties

Regulation 31

Column 1<br>Item	Column 2<br>Prescribed infringement offence	Column 3 <br>Infringement penalty
1	section 14(2)	10 penalty units
2	section 15(2)	1 penalty unit
3	section 20(1)	0·5 penalty units
4	section 25(2)	1 penalty unit
5	section 27(3)	1 penalty unit
6	section 31B(1)	2·5 penalty units
7	section 34	1 penalty unit
8	section 35(1)	5 penalty units
9	section 35(2)	5 penalty units
10	section 35A(3)	5 penalty units
11	section 41(2)(a)	2 penalty units
12	section 41(2)(b)	2 penalty units
13	section 42(2)(a)	2 penalty units
14	section 42(2)(b)	2 penalty units
15	section 42A(1)	5 penalty units
16	section 43(3)	5 penalty units
17	section 44	2 penalty units
18	section 50J(1)	1 penalty unit
19	section 52(1)	1 penalty unit
20	section 52(6)	1 penalty unit
21	section 82A(1)	5 penalty units
22	section 82A(2)	5 penalty units
23	section 83A	2 penalty units
24	regulation 18	1 penalty unit
25	regulation 19(1)	1 penalty unit
26	regulation 21	1 penalty unit
27	regulation 22(1)	1 penalty unit
28	regulation 22(2)	1 penalty unit
29	regulation 27	1 penalty unit

═════════════

Endnotes

1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

The Motor Car Traders Regulations 2018, S.R. No. 94/2018 were made on 3 July 2018 by the Lieutenant-Governor as the Governor's deputy, with the advice of the Executive Council, under section 90 of the Motor Car Traders Act 1986, No. 104/1986 and came into operation on 1 September 2018: regulation 3.

The Motor Car Traders Regulations 2018 will sunset 10 years after the day of making on 3 July 2028 (see section 5 of the Subordinate Legislation Act 1994).

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided regulation, rule or clause of a Schedule is amended by the insertion of one or more subregulations, subrules or subclauses the original regulation, rule or clause becomes subregulation, subrule or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original regulation, rule or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

• Headings

All headings included in a Statutory Rule which is made on or after
1 January 2001 form part of that Statutory Rule. Any heading inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
This includes headings to Parts, Divisions or Subdivisions in a Schedule; Orders; Parts into which an Order is divided; clauses; regulations; rules; items; tables; columns; examples; diagrams; notes or forms.
See section 36(1A)(2A)(2B).

• Examples, diagrams or notes

All examples, diagrams or notes included in a Statutory Rule which is made on or after 1 January 2001 form part of that Statutory Rule. Any examples, diagrams or notes inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, form part of that Statutory Rule. See section 36(3A).

• Punctuation

All punctuation included in a Statutory Rule which is made on or after
1 January 2001 forms part of that Statutory Rule. Any punctuation inserted in a Statutory Rule which was made before 1 January 2001, by a Statutory Rule made on or after 1 January 2001, forms part of that Statutory Rule.
See section 36(3B).

• Provision numbers

All provision numbers included in a Statutory Rule form part of that Statutory Rule, whether inserted in the Statutory Rule before, on or after
1 January 2001. Provision numbers include regulation numbers, rule numbers, subregulation numbers, subrule numbers, paragraphs and subparagraphs. See section 36(3C).

• Location of "legislative items"

A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of a Statutory Rule is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.

• Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of a Statutory Rule. See section 36(3)(3D)(3E).

2 Table of Amendments

There are no amendments made to the Motor Car Traders Regulations 2018 by statutory rules, subordinate instruments and Acts.

3 Amendments Not in Operation

There are no amendments which were Not in Operation at the date of this publication.

4 Explanatory details

Reg. 4(a): S.R. No. 144/2008 as amended by S.R. Nos 40/2010, 101/2010, 120/2014 and 8/2017. ↑
Reg. 4(b): S.R. No. 40/2010. ↑
Reg. 4(c): S.R. No. 101/2010. ↑
Reg. 4(d): S.R. No. 120/2014. ↑
Reg. 4(e): S.R. No. 8/2017.

——

Penalty Units

These Regulations provide for penalties by reference to penalty units within the meaning of section 110 of the Sentencing Act 1991. The amount of the penalty is to be calculated, in accordance with section 7 of the Monetary Units Act 2004, by multiplying the number of penalty units applicable by the value of a penalty unit.

The value of a penalty unit for the financial year commencing 1 July 2018 is $161.19.

The amount of the calculated penalty may be rounded to the nearest dollar.

The value of a penalty unit for future financial years is to be fixed by the Treasurer under section 5 of the Monetary Units Act 2004. The value of a penalty unit for a financial year must be published in the Government Gazette and a Victorian newspaper before 1 June in the preceding financial year. ↑

1 Motor Car Traders Regulations 2018

Version No. 001

Motor Car Traders Regulations 2018

S.R. No. 94/2018

Version as at
1 September 2018

TABLE OF PROVISIONS

Regulation Page

Part 1—Preliminary 1

1 Objective 1

2 Authorising provision 1

3 Commencement 1

4 Revocations 1

5 Definitions 2

6 Meaning of associated business 3

7 Exemptions 4

Part 2—Forms 6

8 Prescribed sign 6

9 Dealings book 6

10 Declaration of eligibility of potential employees 8

11 Form of notice to be displayed on used motor car 8

12 Form of notice of absence of warranty 9

13 Form of defect notice 9

14 Statement verifying document to inspector 9

15 Inspectors' powers forms 9

Part 3—Conduct by motor car traders 10

16 Prescribed changes in relation to licensee 10

17 Trader to supervise servants and agents 10

18 Advertisement or statement in relation to motor car trading business 11

19 Advertisement offering used motor car for sale 11

20 Advertisement—used motor car for sale by person other than motor car trader 12

21 Manner of advertisement or statement 13

22 Deposit given before tests to be returned 14

Part 4—Agreements and warranties 15

23 Agreement for sale of used motor car 15

24 Agreement for sale of new motor car 15

25 Terms relating to certain matters to be in sale agreement 15

26 Warranties 16

27 Display of information—agreements and warranties 17

Part 5—Miscellaneous 18

28 Maximum payment on a claim 18

29 Documents, accounts and records to be kept 18

30 Motor car traders must supply copies of agreements etc. 18

31 Infringement notices and infringement penalties 19

Schedule 1—Forms 20

Schedule 2—Particulars, terms and conditions for sale of used motor car 30

Schedule 3—Particulars for sale of new motor car 36

Schedule 4—Infringement offences and infringement penalties 38

The Regulations organise around several recurring concepts that implement the Act’s statutory framework. Those concepts are defined, operationalised and given form or quantitative bounds.

Definitions and association. Regulation 5 supplies definitions used across the instrument. The Regulations adopt statutory terms from other Acts where appropriate (for example ABN from the A New Tax System (Australian Business Number) Act 1999 and truck from the Road Safety Act 1986) and then adds local definitions such as LMCT, police check and compliance date (reg 5). Regulation 6 gives a multi-factor test for when two businesses are "associated businesses", listing ownership, family, partnership, direct income receipt, management positions, relevant financial interest and related bodies corporate per Corporations Act concepts (reg 6).

Prescribed forms and particulars. Part 2 prescribes exact forms and the particulars to be included in them. Form 2 (the dealings book) is the template for acquisition and disposal records and sets required fields such as registration number, VIN/chassis number, odometer reading and signature requirements (reg 9; Schedule 1, Form 2). Form 4 prescribes the used motor car notice and a standard warranty information panel, including the statutory warranty default rules for cars less than 10 years/160 000 km (regs 11-12; Schedule 1, Form 4). Form 5 is the defect notice required under s 55 of the Act (reg 13; Schedule 1, Form 5). Form 7 is an embargo notice referring to s 82AM (reg 15; Schedule 1, Form 7).

Advertising and disclosure. Regulations 18-21 standardise what must appear in adverts. All advertising by a motor car trader, or by their servants or agents, must include the letters "LMCT" followed by the trader’s licence number (reg 18). Advertisements of used motor cars must show a single price inclusive of all fees and duties plus either registration number or VIN/other identifying number (reg 19). There are specific, limited exceptions for public auctions and for batch advertisements (reg 19(2)-(3)). Regulation 21 requires that advertised text be clear and legible.

Agreements, warranties and cooling-off. The Regulations prescribe the standard terms and particulars for sale agreements for used cars (Schedule 2) and new cars (Schedule 3) (regs 23-24). They mandate cooling-off rights under s 43 of the Act and set the amounts a purchaser forfeits if they cancel under certain circumstances: for used cars the refundable amount is calculated as a refund of all money paid except $100 or 1 per cent of the purchase price, whichever is greater (Schedule 2). For new cars Schedule 3 prescribes a refund except $400 or 2 per cent (or $100 or 1 per cent for off-trade premises sales).

Record-keeping and document supply. Regulation 29 lists the categories of documents the licensed trader must keep, including sale agreements, exchange agreements, extended warranties, police checks and completed forms (reg 29). Regulation 30 lists the documents that must be supplied in response to requests under s 83C(1) of the Act.

Enforcement architecture. The Regulations give form and process to inspection and enforcement: prescribed forms for verification of documents to inspectors (Form 6; reg 14), for embargo notices (Form 7; reg 15), and a mapping of infringement offences to prescribed monetary penalties (reg 31; Schedule 4). The endnotes explain that penalty units are calculated under the Sentencing Act 1991 and the Monetary Units Act 2004 and give the value of a penalty unit for the 2018-19 financial year (Endnotes).

Exemptions and limits. Regulation 7 lists specific exemptions from the Act for certain classes of sales at public auction (local councils, executors, insured motor cars where repair cost would be more than $4 800 or exceed value), and notes that new motor cars are exempt from operation of s 35(1) of the Act (reg 7).

Key accessory list for warranty purposes. Regulation 26 lists accessories that are treated as "prescribed accessories" for s 54(4)(d) (for example radios, CD players, telephones, satellite navigation systems, keyless entry systems) (reg 26).

Monetary caps. Regulation 28 prescribes $40 000 as the maximum payment on a claim for the purposes of s 77(4)(a) of the Act (reg 28).

Sunset and administrative facts. The endnotes record that the Regulations were made on 3 July 2018, commenced 1 September 2018 and will sunset 10 years from making under the Subordinate Legislation Act 1994 (Endnotes). They also confirm there are no amendments to the Regulations as at the published version (Endnotes).

Together, these concepts create a compliance framework that fixes what traders must display, record, supply, warrant and retain, while providing enforcement tools and specified monetary bounds.

The Regulations allocate duties and consequences across identifiable parties. They apply to licensed motor car traders (LMCTs) and extend to the traders’ servants and agents. They also affect prospective employees in customer service capacities, auctioneers, purchasers, persons advertising used motor cars who are not traders, associated businesses and, indirectly, the public who buy motor cars.

Licensed motor car traders. The Regulations place the principal obligations on LMCTs. Traders must use the prescribed dealings book (Form 2) for acquisitions and disposals (reg 9). Traders must supervise servants and agents to secure compliance with the Act and these Regulations (reg 17, penalty 10 penalty units). Traders must include their LMCT number in every business advertisement or statement (reg 18). When offering used motor cars for sale, traders or their servants or agents must include a single price inclusive of fees and duties and identification information (reg 19). Traders must attach the prescribed used motor car notice (Form 4) to used cars and ensure that agreements and warranty statements are clear and legible (regs 11, 12, 27). Traders must keep specific records and supply copies on request (regs 29-30).

Servants and agents. The Regulations impose obligations on a trader’s servants and agents as if they were the trader for certain publications and advertisements (reg 18-21). Regulation 17 requires the trader to supervise and control each servant and agent to ensure compliance; failure to supervise attracts a 10 penalty unit sanction.

Prospective and current employees in customer service capacities. Regulation 10 prescribes Form 3, a declaration of eligibility. The form requires statements about prior claims against the Motor Car Traders' Guarantee Fund, partnerships or directorships connected to such claims, disqualifying convictions within the last ten years and permissions obtained under sections 29A and 29B of the Act. Form 3 contains a note that false or misleading statements in the declaration are an offence under s 84A(1) of the Act and specifies retention obligations for the police check and the form under s 83A (Form 3 note). Regulation 29 includes police checks among the records to be kept (reg 29(e)).

Purchasers and other sellers. Individuals who buy used or new motor cars are directly affected by the cooling-off rights and the content of sale agreements (Schedules 2 and 3). Private sellers and others who are not motor car traders but who place advertisements in certain publications must include single price and identification particulars when advertising a used car in a newspaper or specialist magazine circulating in Victoria (reg 20). There are exceptions for auction advertising (reg 20(2)-(3)).

Auction businesses and auctioneers. Auctions are given specific treatment. Certain public auctions are exempt from the Act (reg 7(1)(a)-(c)); trade auctions are defined to limit bidding to licensed traders (reg 5). Where an auction business or associated business sells damaged motor cars, the exemptions in reg 7(3) do not apply (reg 7(4)). The dealings book must record auction-related particulars for acquisitions at auction (reg 9(4)).

Regulators and inspectors. The Regulations provide inspectors with prescribed verification and embargo forms (Forms 6 and 7) and set out the consequences of embargo notices (Schedule 1, Form 7). Regulation 31 designates infringement offences and penalties, creating a framework for enforcement through infringement notices.

Third parties dealing with traders. Corporates, credit providers and bodies corporate are affected indirectly because Schedules 2 and 3 require particulars about trade-ins, credit provider transfer obligations and obligations to discharge encumbrances. Regulation 6’s definition of associated business refers to Corporations Act concepts and related bodies corporate.

Overall distributive effect. The Regulations concentrate obligations on LMCTs and their workforce, impose disclosure duties on private and non-trader advertisers in certain media, protect purchasers through standardised agreements, cooling-off rights and warranty provisions, and give inspectors and enforcement agencies practical instruments for supervision and sanction (Forms 6-7, reg 31). The practical cost of compliance therefore falls primarily on traders (and on non-trader advertisers who meet the specified criteria), while consumers and inspectors receive clearer, standardised documents and processes.

This section sets out the principal positive duties imposed on participants and the essential rights the Regulations create for consumers and third parties, citing the relevant provisions.

Duties on licensed motor car traders

Maintain and use prescribed forms. Traders must maintain the dealings book in the prescribed Form 2 and enter specified acquisition and disposal particulars at prescribed times (reg 9(1)-(2)). The dealings book must contain registration numbers or stock numbers, vehicle identification number or other identifying number, odometer reading and signatures in prescribed circumstances (reg 9(3)-(7); Schedule 1, Form 2).
Supervise staff. Traders must supervise and control each servant and agent to ensure compliance with the Act and Regulations; failure to supervise attracts a 10 penalty unit penalty (reg 17).
Use prescribed signage. Traders must display the prescribed sign (Form 1 in Schedule 1) where required by s 34 of the Act (reg 8).
Advertising content. Every advertisement or statement connected with trading by a trader (or by their servants or agents) must include "LMCT" followed by the licence number (reg 18, penalty 10 penalty units). Advertisements for used cars must include a single price inclusive of all fees and duties and either registration number or VIN (reg 19, penalty 10 penalty units).
Agreements and warranty terms. Traders must use the prescribed particulars, terms and conditions for sale agreements for used cars (Schedule 2) and new cars (Schedule 3) where the Act requires (regs 23-24). If the trader agrees to repair defects, fit parts, or deal with registration/duty/insurance matters as part of an agreement for sale of a used car, those terms must be set out in writing in the agreement (reg 25, penalty 10 penalty units).
Warranties. The trader must observe statutory warranty rules described in Schedule 2 B and Form 4. Regulation 26 lists accessories which are prescribed for the purposes of s 54(4)(d) and thereby affect warranty coverage.
Return of deposits. If a prospective purchaser takes a car for a test or examination after depositing money or a thing of value and returns the car without purchasing, the trader must refund the deposit immediately on demand (reg 22(1), penalty 10 penalty units). Similar immediate refund obligations apply where a conditional agreement is entered and the purchaser does not continue (reg 22(2)).
Record retention and production. Traders must keep agreements, exchange agreements, extended warranties, police checks and completed prescribed forms (reg 29). They must supply copies of certain documents listed in reg 30 in accordance with s 83C(1) of the Act.

Duties on non-trader advertisers and auctioneers

Private persons advertising in certain media. Persons other than motor car traders who advertise a used motor car in a newspaper circulating in Victoria or in a motor car specialist magazine generally circulating in Victoria must include single price inclusive of fees and duties and registration or VIN (reg 20, penalty 10 penalty units).
Auctioneers. Where a car is acquired at auction, the dealings book must record the auctioneer’s name and address or the auction business’s ABN and principal place of business (reg 9(4)). Auction-related exceptions to advertising and identification obligations exist, with written particulars to be provided on request at auctions (regs 19(3)(b), 20(3)(b)).

Rights afforded to purchasers and others

Cooling-off rights. The Regulations reproduce statutory cooling-off information in Schedules 2 and 3, including the right under s 43 to end a contract within 3 clear business days unless specified exceptions apply (Schedules 2 and 3). They set the forfeiture formula when the purchaser ends the contract within the cooling-off period: used car purchasers are entitled to refund except $100 or 1 per cent of the purchase price, whichever is greater (Schedule 2); new car purchasers have different specified forfeiture amounts (Schedule 3).
Warranty entitlements. For motor cars not older than 10 years and driven less than 160 000 km, a statutory warranty operates automatically for the shorter of 3 months or 5 000 km following delivery (Schedule 2 B; Form 4). The Agreement must state whether the statutory warranty applies (Form 4 Part A, Schedule 2 B).
Defect notices. A purchaser may be given a Form 5 defect notice that lists items that are not subject to warranty and that must be attached to the car and given to the purchaser at sale (reg 13; Schedule 1, Form 5).
Information access. Buyers and the public obtain standardised information via prescribed notices affixed to cars (Form 4) and through the mandated content in sale agreements (Schedules 2 and 3). Also certain documents must be supplied under reg 30 in accordance with s 83C of the Act.

Inspection and enforcement powers and limits

Verification and embargo processes. Inspectors have prescribed forms for verification of documents and embargo notices (Forms 6 and 7; regs 14-15). Form 7 explains that section 82AM makes it an offence to sell, lease, move, transfer or otherwise deal with an embargoed thing without the inspector’s written consent and that such dealings are void (Schedule 1, Form 7).
Infringement regime. Regulation 31 and Schedule 4 designate particular provisions as infringement offences and attach set infringement penalties measured in penalty units. The endnotes set out the mechanism for translating penalty units into dollar amounts (Endnotes).

Other procedural duties

Content legibility. Agreements, notices and advertisements must be printed, typed or written in a clear and legible manner (regs 11(2)(a), 21, 27; Schedule 1, Form 4).
Signature and delivery formalities. Several forms require signatures (dealings book acquisition/disposal signatures, Form 4 signatures on sale, Form 5 purchaser and trader signatures) and prescribe when forms must be attached or delivered (reg 9(7); Form 4; Form 5).

Rights and duties interact: for example, a purchaser’s cooling-off right is conditioned by the agreement terms prescribed in Schedule 2 which the trader must supply and keep (reg 23; reg 29). Breaches of many duties are specified as infringement offences with set monetary penalties (reg 31, Schedule 4). The Regulations therefore create a network of procedural entitlements and trader obligations designed to standardise disclosure and records, provide consumer protection, and enable inspection and financial penalties for breaches.

The Regulations create an enforcement architecture that combines criminal penalties referenced to the Act, infringement notices for specified offences, embargo powers and inspector forms. This section maps the enforcement instruments, the sanctions, and the mechanics of penalty calculation as provided in the instrument.

Monetary and criminal penalties referenced. The Regulations refer to penalties measured in penalty units (see many provisions with express "Penalty: X penalty units", e.g. regs 17-19, 21-22, 25, 27). The Endnotes explain how penalty units are valued: penalty units are within the meaning of s 110 of the Sentencing Act 1991 and the value of a penalty unit is fixed under the Monetary Units Act 2004; the value for the financial year commencing 1 July 2018 is $161.19 (Endnotes). The endnotes also explain rounding and the process for future values. The Regulations therefore embed the Sentencing Act and the Monetary Units Act as the machinery for translating penalty units into dollar sums.

Specified civil infringement offences and penalties. Regulation 31(1) designates offences in Column 2 of Schedule 4 as offences in respect of which an infringement notice may be issued. Regulation 31(2) prescribes the infringement penalty for each infringement offence to be the amount in Column 3 of Schedule 4. Schedule 4 lists 29 items mapping identified sections of the Act and Regulations to specified infringement penalties in penalty units (for example, section 35(1) is listed at item 8 with an infringement penalty of 5 penalty units; regulation 18 is item 24 with 1 penalty unit; regulation 19(1) is item 25 with 1 penalty unit). Those infringement penalties are administrative monetary penalties recoverable via the infringement notice regime (reg 31).

Examples and enforcement exposure. Several contraventions attract penalties of 10 penalty units as a maximum criminal penalty where stated in the body of a regulation (e.g. reg 17 trader supervision, reg 18 failure to include LMCT, reg 19 advertising requirements, reg 22 deposit refund obligations). The infringement schedule, however, often sets lower infringement penalties for specific contraventions (Schedule 4). For instance regulation 18 is an infringement offence (item 24) with infringement penalty 1 penalty unit while the regulation text itself lists a 10 penalty unit penalty , indicating the instrument contemplates both possible prosecution and the streamlined infringement notice process for some breaches (compare reg 18 and Schedule 4 item 24). That dual architecture means the regulator can issue infringement notices for many breaches (Schedule 4) while preserving the option of prosecution where appropriate.

Inspector powers and embargoes. The Regulations prescribe forms used by inspectors. Form 6 is the prescribed statement verifying a document to an inspector (reg 14). Form 7 is an embargo notice under s 82AM (reg 15; Schedule 1, Form 7). The embargo notice in Form 7 recites s 82AM(2)-(4): it states that it is an offence to sell, lease, move, transfer or otherwise deal with an embargoed thing without the inspector’s written consent and that such dealings may be void; it also recites that doing so can attract a penalty not exceeding 50 penalty units (Schedule 1, Form 7). Form 7 thus operationalises s 82AM, warns third parties of the criminal and civil effects of dealing with embargoed property and supplies the inspector’s contact details.

Document production and inspection. Regulation 14 prescribes the form for verification to an inspector under s 82AA(1B). Regulation 15 prescribes the form for embargo notices under s 82AM(1). Regulations 29-30 set out what documents must be kept and what documents must be supplied under s 83C(1). Those record-keeping and production duties support inspection and enforcement, creating a trail that inspectors can require and verify under the Act’s powers.

Maximum payment on a claim. Regulation 28 prescribes $40 000 as the amount for the purposes of s 77(4)(a) of the Act. That numeric cap is an enforcement-related parameter that defines the regulator’s maximum financial exposure or the motor car traders’ liability under specified claim circumstances referenced by s 77.

Procedural safeguards and civil invalidity. Form 7 recalls that a sale, lease, transfer or other dealing with an embargoed thing in contravention of s 82AM(4) is void despite anything in any other Act (Schedule 1, Form 7). That emphasises that third parties who disregard an embargo risk having their dealing void and facing a penalty of up to 50 penalty units, while the inspector holds discretion to permit movements for preservation (Form 7, paragraph 3).

Enforcement discretion and dual pathways. The instrument provides both criminal penalty provisions embedded in regulations and a parallel infringement notice system for many specific contraventions. The presence of both means an enforcement agency can select the infringement route for expediency or pursue prosecution for more serious or contested matters. Schedule 4’s mapping signals which contraventions the regulator has chosen to make suitable for infringement notices and what the fixed administrative penalty will be.

Conversion to dollars. Converting penalty units to dollar amounts depends on the monetary unit value in force at the relevant time. The Endnotes give $161.19 as the penalty unit value for the 2018 financial year. Multiplication and rounding rules are set out in the Monetary Units Act 2004 and related provisions mentioned in the Endnotes.

In short, enforcement is effected through a mix of recorded statutory criminal penalties measured in penalty units, a catalogue of infringement offences under reg 31 and Schedule 4 enabling issuance of infringement notices, inspector forms for verification and embargo, document production duties and the potential voiding of transactions made in contravention of embargoes. The Regulations therefore create a standardised, multi-tiered enforcement architecture with specified monetary and procedural mechanisms.

The Regulations are expressly framed as subordinate to and implementing the Motor Car Traders Act 1986 (the Act) and make multiple cross-references to other Victorian and Commonwealth statutes. The instrument assumes the Act’s operative powers and uses external statutory definitions and procedural machinery. The following interactions are explicit in the text.

Primary statutory relationship: Motor Car Traders Act 1986. The Regulations are made under s 90 of the Act (reg 2) and repeatedly refer to sections of the Act they implement (for example regulations cite ss 34, 35, 35A, 41, 42, 43, 52, 54, 55, 77, 82AA, 82AM, 83A, 83C and other provisions). Many prescriptions are expressly for the purpose of specified sections of the Act: prescribed sign for s 34 (reg 8); dealings book for s 35 (reg 9); declaration form for s 35A(3) (reg 10); forms for notices under ss 52, 54, 55 and for inspector verification and powers under ss 82AA and 82AM (regs 11-15). Schedules 2 and 3 give the particulars for sale agreements required by ss 41 and 42 (regs 23-24). The Regulations therefore operationalise specific Act obligations and are part of the Act’s regulatory machinery.

Cross-references to Victorian legislation. The Regulations import definitions and refer to administrative processes in other Victorian laws. For example:

Road Safety Act 1986 is referenced for the meanings of "truck" and the certificate of roadworthiness requirement (reg 5; Schedule 1, Form 2).
Local Government Act 1989 is used to define the class of public auctions of council-owned motor cars that are exempt (reg 7(1)(a)).
Sentencing Act 1991 is cited regarding penalty units used in Regulations via the Endnotes.
Subordinate Legislation Act 1994 appears in the Endnotes concerning the sunset of the Regulations 10 years after making.
The Monetary Units Act 2004 is used to fix the monetary value of a penalty unit and the method of calculating penalty values (Endnotes).

Cross-references to Commonwealth legislation. The Regulations adopt Commonwealth definitions and standards where relevant:

The A New Tax System (Australian Business Number) Act 1999: the definition "Australian Business Number" is adopted by reference (reg 5).
Motor Vehicle Standards Act 1989: compliance plate compliance date is defined by reference to that Commonwealth Act (reg 5).

Interaction with the Corporations Act and related body corporate concepts. Regulation 6 uses "related body corporate within the meaning of section 9 of the Corporations Act" to identify associated business relationships where corporate structures are involved (reg 6(c)(iv)). That ties the concept of association to corporate law concepts and helps determine when exemptions or obligations apply between associated entities.

Relationship with Australian Consumer Law (Victoria). The Regulations invoke the Australian Consumer Law (Victoria) in their explanatory material and sale agreement schedules. Schedule 2 B explicitly notes that statutory warranty benefits under the Motor Car Traders Act are in addition to rights and remedies under the Australian Consumer Law (Victoria) and other Commonwealth, State and Territory laws (Schedule 2 B). It therefore acknowledges that consumer protection under the ACL supplements statutory warranties created by the Act and Regulations.

Enforcement machinery and other Acts. The embargo power in Form 7 references s 82AM of the Act and states that embargoed dealings are void "despite anything in any other Act" (Schedule 1, Form 7). That indicates an express statutory priority for embargo orders made under the Act, and it will interact with property transfer processes and other regulatory regimes if invoked.

Document retention and proof. Form 3 and the note to that form cite s 83A of the Act for retention obligations for police checks and forms (Form 3 note). Regulation 29 requires traders to keep certain documents. The interaction with s 83A means retention is mandated by the Act and the Regulations echo those obligations.

In sum, the Regulations are expressly designed to function in tandem with the Motor Car Traders Act 1986 and to read across to other Victorian and Commonwealth statutes for definitions, penalty mechanics, record-keeping, and professional duties. The cross-references make the instrument an integrated part of a broader statutory mosaic that includes consumer law, corporate law concepts, road safety standards and penalty unit conversion rules.

The Regulations as presented include an explicit revocation of the prior instrument and its amendments and an endnote record of their making and revision status. The following facts on amendment history are drawn from the instrument itself.

Revocations at commencement. Regulation 4 revokes the Motor Car Traders Regulations 2008 and specific amending instruments: the 2010 amendment regulations, the 2010 infringement amendments, the 2014 Red Tape Reduction amendments and the 2017 amendment regulations (reg 4(a)-(e). The Endnotes expand those references and provide statutory rule numbers for the earlier instruments (Endnotes, Explanatory details 1-5).

Commencement date and making. The Regulations were made on 3 July 2018 by the Lieutenant-Governor as Governor’s deputy and came into operation on 1 September 2018 (reg 3; Endnotes). The version published is indicated as Version No. 001 as at 1 September 2018.

Sunset provision. The Endnotes state that the Regulations will sunset 10 years after the day of making on 3 July 2028 under s 5 of the Subordinate Legislation Act 1994 (Endnotes). That gives the instrument a finite projected operation period unless remade.

Amendments recorded in the endnotes. The endnotes include a "Table of Amendments" heading but state there are no amendments made to the Motor Car Traders Regulations 2018 by statutory rules, subordinate instruments and Acts as at the date of the publication (Endnotes, Table of Amendments). They also assert there are no amendments not in operation (Endnotes, section 3).

Style and interpretation amendments. The Endnotes include standard interpretive information about the Interpretation of Legislation Act 1984 (ILA), noting that headings, examples, notes and punctuation are to be regarded as part of the statutory rule where the ILA authorises such style changes. That explains editorial and formatting choices but is not an operational amendment to the substantive law (Endnotes).

Consequences for users. As published, the Regulations replaced earlier instruments in full and have not, within the publication, been subsequently amended. The document therefore represents the consolidated text as at 1 September 2018 with past instruments explicitly revoked and a scheduled sunset date in 2028.

The Regulations themselves, as a subordinate instrument, do not include any litigation history, and no cases are named or summarised in the text. The instrument’s Endnotes do not report judicial decisions that interpret or apply these Regulations. The schedules, forms and notes are administrative specifications and do not reference any judicial authority or case law.

Practical implications of that absence. Because the Regulations do not record litigation, a practitioner cannot rely on the instrument for precedent or judicial interpretation. Any legal disputes about the Regulations’ meaning, application or validity therefore would need to be researched through separate case law searches outside this instrument. The Regulations do include mandatory forms, specified particulars, and penalty mappings; disputes about compliance, interpretation of prescribed terms (for example the scope of "associated business" in reg 6 or the application of the warranty time and kilometre thresholds in Schedule 2 B) could be expected to generate litigation, but no such decisions are recorded in these materials.

Record of enforcement mechanisms but not enforcement outcomes. The instrument sets out enforcement routes (infringement notices, inspector embargo power, penalty units), yet it does not contain any data or narrative about enforcement outcomes, prosecutions, administrative decisions, or appeals. A practitioner seeking litigation history or precedential treatment must consult separate case law databases, tribunal records, or enforcement agency reports.

In short, the Regulations provide the substantive and procedural law but include no litigation history in themselves; the absence of court references in the instrument means independent legal research is necessary to discover how courts or tribunals have applied these provisions.

This section flags precise compliance traps, drafting-based ambiguities and practical friction points that arise directly from the Regulations’ text. Each item identifies who is affected and the mechanism of risk or cost, with citations.

Dual sanctioning paths for the same obligation. Many regulations specify a criminal penalty in their text (for example reg 18 and reg 19 carry an express "Penalty: 10 penalty units") while Schedule 4 lists the same conduct as an infringement offence with a lower infringement penalty (Schedule 4 items 24-25). The regulator may issue an infringement notice (administrative penalty) or prosecute (criminal penalty). Traders who assume only the infringement route is available may misjudge enforcement exposure (compare reg 18 and Schedule 4 item 24).
"Single price" requirement can trip advertising formats. Regulation 19(1)(a) requires a single price inclusive of all fees and duties for advertisements of used motor cars. The text does not clarify whether conditional pricing, price ranges or finance-only prices satisfy the requirement. Exceptions exist for auctions (reg 19(2)) and batch electronic/broadcast advertisements (reg 19(3)(a)), but practitioners must ensure that any advert outside those exceptions states a single inclusive price or risks penalty (reg 19(1), Schedule 4 item 25).
Identification in ads , incomplete exceptions. Regulation 19(1)(b)-(c) requires a registration number if registered, or VIN (or another identifying number) if unregistered. The exceptions allow batch broadcast adverts and auctions but place the onus on the trader to supply the identifying details in writing at an auction on request (reg 19(3)(b)). A trader relying on a broadcast ad to avoid including VINs must ensure the auction process provides the written data on request; otherwise the omission may be an offence.
Auction exemptions have narrow carve-outs and association traps. Regulation 7 exempts certain public auctions, but reg 7(4) excludes sales of damaged cars, recovered stolen cars and trucks from the exemption if the car or truck is owned by the auction business or an associated business. The definition of "associated business" in reg 6 is broad and includes family relationships, direct income receipt and corporate management relationships. Traders who use separate legal entities to run auctions and sale businesses must check reg 6 to avoid losing the auction exemption unexpectedly.
Immediate refund obligations on deposit returns. Regulation 22 requires immediate refund "on demand" for deposits taken prior to a test or trial if the person returns the car and does not enter into a purchase agreement (reg 22(1)); a similar immediate obligation applies where a purchaser withdraws from a conditional agreement after a test (reg 22(2)). The word "immediately" creates cash flow and handling demands for traders and may be operationally challenging if deposits have already been outlaid or bank transfers are pending. Non-compliance is a 10 penalty unit offence in the regulation text and an infringement penalty entry exists (Schedule 4 items 27-28).
Trade-in and title transfer sequencing can create practical risk. The trade-in clauses in Schedule 2 require the purchaser to deliver the trade-in vehicle by the purchase vehicle delivery date and give mechanisms for net trade-in allowance adjustments (Schedule 2 C(4)). The seller must not sell the trade-in before delivery without written consent (Schedule 2 C(4)). Mis-timing can create exposure for the trader to refund or return obligations when finance arrangements and third-party encumbrances are involved.
Ambiguity on retention periods for certain records. Regulation 29 lists documents to keep but the Regulations do not uniformly specify retention periods in every clause. Form 3’s note cites s 83A of the Act requiring police checks and the declaration to be retained for at least 6 years, but reg 29 itself does not specify retention durations. Practitioners must cross-check the Act for retention requirements rather than rely solely on reg 29.
Warranty scope is partly defined by accessory lists. Regulation 26 lists "prescribed accessories" for s 54(4)(d) purposes. Those accessories include many electronic and non-standard items. The list may cause disputes about whether a particular item not listed is standard to the car and hence covered by warranty or excluded. Traders and purchasers must be explicit in agreements about what is standard and what is non-standard to avoid misapplication of s 54.
Legibility and formality requirements have tight technical compliance gates. Several provisions require text to be "printed, typed or written in a clear and legible manner" (regs 11(2)(a), 21, 27). That phrase creates a non-technical, but enforceable, standard. Minor breaches (poorly printed window notices, illegible contract terms) risk penalties, and inspectors can treat formality lapses as grounds for enforcement.
Embargo notices create risk of void transfers. Form 7 recites that a dealing with an embargoed thing without inspector consent is an offence and that such dealings are void despite anything in any other Act (Schedule 1, Form 7). Purchasers or financiers who accept title without checking for embargoes risk having their transaction voided. Traders and third-party buyers must check for embargoes before completing a transfer.
Infringement penalty amount variability. The Regulations provide only the penalty unit multiples in Schedule 4. The dollar amount of a penalty thus varies with the penalty unit value in force at the time of the infringement (Endnotes). Traders who calculate fines on an older penalty unit value risk underestimating actual exposure.
Police check declarations include criminality and previous claim disclosures. Form 3 requires disclosure of prior claims against the Motor Car Traders’ Guarantee Fund and convictions for disqualifying or serious offences within ten years. False or misleading statements have substantial penalty exposure under s 84A(1) of the Act (Form 3 note). Employers must ensure accurate checks and retention to avoid prosecution exposure.

These "gotchas" are technical and operational. They arise from the Regulations’ detailed prescriptive forms, the interaction of statutory and regulatory requirements, and the presence of both administrative and criminal enforcement mechanisms. Traders and advisers should map internal procedures to the Regulations’ forms and timings and check associated sections of the Act (for retention, inspection powers and key definitions) to avoid inadvertent breaches.

This section provides a practical compliance checklist and operational steps directly traceable to the Regulations. Each step cites the regulating clause to enable verification against the text.

Governance and supervision

Assign compliance responsibility. A licensed motor car trader must ensure supervision and control of servants and agents to secure compliance with the Act and these Regulations (reg 17). Nominate a senior manager to be accountable and document supervisory procedures.
Record alterations in licence particulars. Notify the licensing authority when any prescribed change occurs (examples include change of trading name, address, telephone number, internet site address, majority shareholding, company secretary or manager appointment , reg 16). Maintain an internal log of such changes to trigger notification.

Signage, advertising and labelling

Display the prescribed sign. Post the prescribed "LICENSED MOTOR CAR TRADER (or LMCT)" sign bearing the licence number as Form 1 prescribes, to comply with s 34 (reg 8; Schedule 1, Form 1).
Include licence number in all advertising. Ensure every advertisement or statement relating to the trading business published by the trader or by any servant or agent includes "LMCT" followed by the licence number (reg 18).
Ensure advert content meets identification and pricing rules. For each used car advert, include the single price inclusive of all fees and duties, and either the registration number (if registered) or VIN/other identifying number (if unregistered) unless a listed exception applies (reg 19). For private sellers advertising in newspapers or specialist magazines, apply the same rule (reg 20).

Dealings book and acquisition/disposal records

Use Form 2 as the dealings book. Record acquisition and disposal details using Form 2 fields: registration or stock number, make/model, compliance date, VIN or other identifying number, date of acquisition, odometer reading, seller’s name and address or auction business particulars, signature where required (reg 9; Schedule 1, Form 2).
At auctions, ensure auctioneer or auction business identification is recorded in the paper document and subsequently entered in the dealings book (reg 9(4)-(5)).
Ensure signatures are obtained on acquisition documents in the prescribed manner (reg 9(7)).

Employment checks and retention

Obtain completed Form 3 declarations and police checks before employing in a customer service capacity. Use the prescribed Form 3 for prospective employees and obtain a police check as required by the Act; keep both items as records (reg 10; Form 3 note; reg 29(e)).
Verify accuracy and retain for at least the period required by the Act. Form 3’s note refers to s 83A for the six-year retention requirement for police checks and Form 3. Confirm retention periods from the Act and manage secure storage.

Agreements and warranties

Use Schedules 2 and 3 for sale agreements. When entering into agreements for sale of used cars or new cars as required under ss 41 and 42 of the Act, ensure the agreement includes the prescribed particulars, warranty information and terms in Schedule 2 (used cars) or Schedule 3 (new cars) (regs 23-24).
Ensure warranty statements and notices follow Form 4. Affix the prescribed used motor car notice (Form 4 Part B) to the right side window and ensure the purchaser signs and receives a copy on sale in accordance with s 52 and reg 11 (reg 11; Schedule 1, Form 4).
Where the trader agrees to repair defects, fit parts, register or re-register, set these commitments out in writing in the agreement (reg 25).

Handling deposits and tests

Refund deposits immediately on demand where required. If a person takes a motor car for a driving trial or examination after depositing money and then returns the car without buying, refund the deposit immediately on demand (reg 22(1)). For conditional agreements where a purchaser withdraws after a test, refund immediately (reg 22(2)). Ensure cash-flow and transaction systems permit immediate refunds (reg 22).

Defect notices and exclusions

Use Form 5 for listing defects. Where defects are to be notified as excluded from warranty (s 55), attach Form 5 to the car at all times material and ensure a signed copy is given to the purchaser on sale; ensure the trader’s estimate of repair cost is reasonable (reg 13; Schedule 1, Form 5).

Document storage and supply

Maintain the documents listed in reg 29. That list includes sale agreements for used and new cars, exchange agreements, extended warranty documents, police checks and completed Forms 2, 3, 4 or 5. Store these records in a retrievable form (reg 29).
Be prepared to supply copies listed in reg 30. Ensure administrative processes are in place to produce documents required under s 83C(1) and as listed in reg 30 when requested.

Advertising legibility and format control

Ensure all advertised and contractual text is clear and legible. The Regulations require that advertisements, notices and agreement text be printed, typed or written in a clear and legible manner (regs 11(2)(a), 21, 27). Implement template checks and quality control to guarantee legibility.

Infringement risk management

Map contraventions to Schedule 4. Create a compliance register that lists the provisions that attract infringement penalties (Schedule 4) and the applicable penalty units. Remember that the dollar value changes with the penalty unit value set annually (reg 31; Endnotes).
Train staff about high-risk items. Emphasise immediate refund obligations (reg 22), LMCT number inclusion (reg 18), single price advertising (reg 19) and the legibility requirements (regs 11, 21, 27), as these are frequent triggers for enforcement.

Embargo and inspection responsiveness

Check for embargoes before dealing. Before selling, transferring or moving property, ensure there is no embargo notice under s 82AM; Form 7 indicates such dealings without inspector consent are offences and void (reg 15; Schedule 1, Form 7).
Cooperate with inspectors and use prescribed forms. When an inspector requests verification or produces an embargo notice, respond with the prescribed Form 6 if verifying documents to support compliance checks (reg 14; Schedule 1, Form 6).

Financial exposure planning

Budget for maximum claim caps and penalty risk. The Regulations prescribe $40 000 as the maximum payment on a claim under s 77(4)(a) (reg 28). Factor that cap and potential infringement penalties (converted to dollars using the current penalty unit value) into risk assessments and insurance or guarantee fund considerations.

Review and periodic audit

Conduct periodic compliance audits against the Regulations. Treat the dealings book entries, forms lodged, adverts placed, and staff supervision as audit points and document remediation work. Ensure the audit captures both substantive compliance and formalities such as signatures and legibility.

Cross-check the Act

Always cross-check with the Motor Car Traders Act 1986. Several regulatory duties implement or refer to Act sections (for example s 35 dealings book obligations, s 35A police check and disqualification rules, s 41-42 agreement requirements, s 54 warranties). Compliance requires reading both the Act and these Regulations in tandem.

This checklist aligns operational processes to the Regulations’ prescribed forms, times and content. Where the Regulations refer to the Act for retention periods, sanctions or further procedural detail, obtain the relevant Act text and any regulator guidance to complete compliance plans.

Motor Car Traders Regulations 2018

Plain English Summary

Deep Dive

What it does

Current sections

Motor Car Traders Regulations 2018

Source text: opening excerpt

1 Motor Car Traders Regulations 2018

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply