SA consumer watchdog to crack down on unlicensed 'backyard' car dealers
Unlicensed "backyard" car dealers will be the target of a major investigation by the South Australia's consumer watchdog over the next four months.
Consumer and Business Services will inspect properties of people selling more than four used cars in a year with unlicensed traders to face fines of up to $100,000.
Consumer affairs commissioner Dini Soulio said backyard car dealers had become a widespread problem, with impacts on the licensed industry.
"Depending on the extent of their activities, we will initially, in the first instance, approach them," Mr Soulio said.
"We will explain to them that they are breaking the law ... and give them a warning, and where there's people operating a more significant commercial operation we will look at taking prosecution action."
Mr Sulio said buying a used car from an unlicensed dealer could be fraught with risks with no cooling-off period, no warranty and no guarantee the car is free of problems.
"Vehicles are an expensive purchase and we want to ensure both consumers and licensed traders are protected," he said.
"We don't want to see the actions of dodgy dealers tarnish the reputation of the vehicle sales industry."
Motor Trade Association (MTA) chief executive officer Paul Unerkov welcomed the move to crack down on "backyarders".
"Members of the MTA not only meet their legal requirements, they also adhere to our strict code of conduct giving consumers even more confidence in purchasing a second-hand vehicle," he said.
Mr Sulio said investigators and compliance officers would use information from various sources to find and deal with unlicensed dealers.
