Toughen The Law To Better Protect Car Buyers Says MTA

The Motor Trade Association (MTA) is calling for changes to the present law governing motor vehicle sales, including stricter qualifying criteria for trader registration.

MTA spokesman, Andy Cuming, said that the present Motor Vehicle Sales Act (MVSA), introduced in 2003, has a fundamental purpose to protect consumers, but continues to fail car buyers by setting the bar too low for those who qualify as registered traders.

“Virtually no qualifying criteria exist, and consumers deserve far better than that,” said Andy Cuming.

“We say that it is essential for all registered traders to be able to demonstrate motor industry experience, together with familiarisation with the provisions of the Act, awareness of relevant consumer law and other relevant industry processes.

“Applicants for registration are not even required to provide an IRD number!”

Andy Cuming said that it is all about standards, and what they represent.

“Being identified as a Registered Motor Vehicle Trader within consumer legislation sends a message to car buyers that a trader is qualified to have regard for their interests, and will work in strict compliance with the law.

“Such an assurance is not supported by the present minimal qualifying criteria – and consumers are thus being ill-served by the very legislation designed to protect them.”

At the present time, a Parliamentary Select Committee is hearing submissions on the Motor Vehicle Sales Amendment Bill, including a range of changes which MTA generally considers would improve the efficiency of the Act.

“But reviews of this legislation continue to miss a key consumer fundamental for those who would conduct the trade – have these people proven their understanding of what is involved, and can they be relied upon to deliver this to their customers?”