- Home
- Hansard & Papers
- Legislative Assembly
- 5 April 2001
Flood-Damaged Vehicle Sales
Printing Tips |
Print selected text
| Full Day Hansard Transcript
« Prior Item |
Item 21 of 51
| Next Item »
Page: 13343
Ms SALIBA: My question without notice is addressed to the Minister for Fair Trading. What is the Government's response to the report that flood-damaged vehicles are being sold in New South Wales?
Mr WATKINS: I thank the honourable member for Illawarra for her question, which allows me to warn New South Wales car buyers of a potential trap for the unwary. Over the past few days the Department of Fair Trading has been made aware that hundreds of motor vehicles damaged in recent floods in northern New South Wales are about to hit the New South Wales car market. Anyone purchasing a motor vehicle over the next few weeks—especially those seeking a bargain—needs to be aware of the risk that they may be buying a lemon. Fair Trading is concerned that a minority of unscrupulous dealers might not disclose that the cars they have on sale have been partly—or fully—immersed in floodwaters. Of course, the majority of car dealers are honest, hard-working, upstanding members of the community, and they know that car buyers deserve to know what they are paying for. Today I have advised the Motor Traders Association (MTA] of Fair Trading's concerns. As usual, the MTA has agreed to co-operate with Fair Trading in every possible way.
The risk of water damage applies to both new and used vehicles. In fact, flood-damaged cars might run reasonably well for one or two years. However, Fair Trading inspectors have advised me that eventually vital electrical and computer systems are likely to malfunction. Instead of getting a bargain, buyers are left with a bomb. In short, in many instances people who are buying these cars face long-term mechanical trouble with the vehicle. That is why it is vital that the dealers make appropriate disclosures. Several thousand flood-damaged cars have recently been auctioned in Brisbane. In the coming months vehicles trapped in northern New South Wales flood areas are also likely to be auctioned and sold to individuals and dealers from right across Australia. My message today is clear. Anyone buying a car over the next few weeks should ask the seller if the vehicle has been trapped in recent floods. Additionally, Fair Trading inspectors will be out and about and it will take action if full details about flood damage are not provided to car buyers.
Under the current Motor Dealers Act there is no specific requirement for dealers to inform buyers about a vehicle's history. However, Fair Trading can, and will, take action under the Fair Trading Act if misleading representations are made at the point of sale. As members would no doubt be aware, the Motor Dealers Act is currently under review. I have therefore asked Fair Trading to consider whether new disclosure clauses should be inserted in the Act. The problem of water-damaged cars crops up from time to time. Cars might have fresh water damage, especially from floods in country areas, or damage through salt water immersion. Sometimes vehicles are damaged before they even reach Australia. Less than a decade ago a large consignment of motor vehicles sitting on Japanese docks were immersed in salt water when a typhoon hit. The result of that was that the cars were either flooded with massive waves or they ended up at the bottom of the harbour.
In subsequent weeks, those cars were brought to the surface, dried out and exported to Australia and sold here. Following the latest reports, Fair Trading stepped up action to make sure that car buyers are protected. That is why recently a south-western Sydney dealership which was selling large numbers of four-wheel-drive vehicles affected by salt water was ordered to display written disclosures on all vehicles for sale, or face fair trading action in court. People who want to rip off car buyers should be warned that similar action will be taken against them. It is only fair that car buyers have all the necessary information before they make a purchase. After all, the purchase of a motor vehicle is the second most important purchase a family will make. It has the greatest impact on a family's budget and families deserve to get what they pay for.
My advice to car buyers is first to ask questions of the seller. Purchasers should ask the seller whether the vehicle, especially any of those that may be purchased within the next month, has been affected by floodwaters. Second, purchasers should contact officers of the register of encumbered vehicles [REVS] on 9833 6333 to inquire about the vehicle they intend to purchase. People who are intending to purchase a motor vehicle should also ensure that an independent mechanical inspection is carried out. Purchasers should not just take the word of the retailer about the vehicle's condition: they should ask for an independent mechanical inspection.
If prospective purchasers think that they may have purchased a motor vehicle that has been affected by floodwaters, they should contact Fair Trading on 13 32 20, especially if they feel that there may have been misrepresentation related to the purchase of that motor vehicle. I say again that currently the Government is examining both the Motor Dealers Act and the Motor Vehicle Repairs Act which have been under consideration for some time. In deciding upon an appropriate framework, the Government is considering a number of different aspects of the industry. It is worthwhile repeating that the purchase of a motor vehicle is one of the most important financial undertakings that families make.
This weekend there will be families in every constituency who will be buying a car which they hope will keep them safe and a car that they hope will not become a major cost burden on the family budget. There could be nothing worse than purchasing a dream car and subsequently discovering in the months ahead that the vehicle has been affected by floodwaters which will cause major electrical damage and other presently concealed problems. Prospective purchasers should exercise care, contact Fair Trading and, most importantly, before a contract is entered into, ask the dealer whether the vehicle was affected by floodwaters.
Last modified 05/12/2007 16:31:31 : Update this page