MD&R Update: New Rules for Online Motor Dealers
The Motor Dealers
and Repairers Act 2013 has been amended under the Motor Dealers and
Repairers Amendment Act 2023, introducing new rules that apply specifically
to motor dealers who sell vehicles online. These changes are now in effect, and
dealers have until December 2025 to ensure they are compliant.
What’s Changed?
The amendments clearly
define what it means to operate as an online motor dealer and outline
new requirements, including:
- Definition of online
dealers - Dealers can operate
wholly or partly online, but online rules apply whenever a sale is made through
an online channel.
- Disclosure
requirements - Vehicle reports,
notices, or documents can be provided online, but must also be attached to
vehicles if sold partly offline.
- Inspection
opportunities - Online
purchasers must be given the chance to inspect a vehicle before buying, and
again before taking possession at delivery or collection.
- Deposit limits - Online motor dealers cannot request more than
10% of the vehicle price as a deposit before delivery.
- Website requirements - Online dealer websites must have a .au
domain, and dealers must notify NSW Fair Trading of their URL.
What This Means for
Dealers
If your business
operates online - whether exclusively or alongside a physical showroom - you must
ensure your practices align with these new requirements. This includes
reviewing your sales processes, updating deposit policies, and ensuring your
website meets compliance standards.
For full details, refer
to the official guidance from NSW Fair Trading: Changes to motor dealer and repairers laws | NSW Government
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