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New prescribed forms must be used from 1 May 2015  

Prescribed forms

From 1 May, dealers in NSW are required to use the revised forms for all used motor vehicle sales. Motor dealer notices were revised as part of the industry reforms that commenced 1 December 2014. Dealers have been able to use their existing stock since then, but the transition period ends soon. Ensure you and your staff members are familiar with the new requirements and are ready to use the forms by 1 May. 

The new prescribed forms are a part of a regulatory upgrade that aims to strengthen consumer protections and lift the standards in the motor industry for a more efficient and modern marketplace. Motor dealers, motor vehicle repairers and motor vehicle recyclers are required to be transparent about the condition of the vehicles they sell or repair and how prescribed parts are sourced. The legislation provides protection for consumers from misleading or dishonest business conduct and benefits traders by helping to avoid the pitfalls of being inadvertently involved with illegal motor vehicle parts. 

There are now fewer forms for dealers and repairers to complete and while the forms may look a bit different, almost all of the information that they need to contain is the same as what was required under the old legislation.

Most of the questions we have fielded about the new prescribed forms have been about Form 5. Form 5 is a combination of the information that was previously required by forms 4 and 8, replacing both those forms with one.

The main difference between the old forms and this new one is that the same information needs to be provided in a slightly different way. Under section two and three of the form, the trader must disclose the condition of the vehicle by selecting the statements applicable and indicating the dealer guarantee that applies.

Repairers, you have until 1 September 2015 to commence using the new Form 2 Register but are still required to record the source and details of prescribed parts in your business records.

All traders need to be aware of their rights and responsibilities particularly when using software or alternate forms to maintain their records. Failure to comply with the new prescribed forms could result in penalties and fines up to $2,200 for each breach of the legislation.

If you and your staff require training for the new legislation including using the prescribed forms, you may wish to register for a Fair Trading seminar near you.

The new prescribed forms can be downloaded from the Fair Trading website.

 

Register here to learn about industry changes

Wheel
Fair Trading delivers free information seminars for both motor dealers and repairers. Help your staff by providing useful education about their rights and responsibilities under the Motor Dealers and Repairers Act 2013 by registering on our Events page for a seminar in your local area.
 

Next edition Odometer tampering

Odometer
It is a crime to wind back the clock and make false claims about the history of a used vehicle. Motor dealers must be vigilant about the accuracy of an odometer reading especially for the sale of imported cars. Learn how to safeguard your business and the motor industry from dodgy dealers in our June edition.
 

Have questions or feedback? We'd like to hear from you

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Email us to provide us with your comments about the new motor industry laws to autotorque@finance.nsw.gov. 

 
fairtrading.nsw.gov.au