Discussion Paper Summary

May 1998

Proposed Consumer Information Standard for Second-hand Motor Vehicles

This updated discussion document discusses proposals in respect of a CIS for second-hand motor vehicles sold in trade. In particular, it provides proposals relating to those details that will be required to be disclosed on second-hand vehicles offered or displayed for sale. This document also sets out the form and manner in which it is proposed that information is to be disclosed. The standard will be promulgated in accordance with section 27(1) of the FTA.

The Government has recently announced a package of measures designed to address odometer tampering following the report of the Officials Odometer Working Party. Part of the package is support for the review of the MVDA and the introduction of a CIS relating to second-hand motor vehicles. Research undertaken by the odometer working party confirmed that in 1996:

• total sales of second-hand motor vehicles (excluding first registered used vehicle imports) were approximately 685,000
• licensed dealers sold approximately 30% of second-hand vehicles
• private sellers (including auctioneers and unlicensed dealers) sold approximately 70% of second-hand vehicles
• imports of used cars reached a peak of 117,000
• new car sales totalled approximately 65,000
• there is a trend towards a growing number of second-hand vehicles sold at auction and by unlicensed traders.

The focus of this report is the sale of second-hand vehicles by those in trade, which includes unlicensed as well as licensed traders and auctioneers but does not include sales between private individuals. The application of the standard is discussed further at 4.1 below.

Discussion Paper - full text

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