The Property Agents and Motor Dealers Act 2000 clearly outlines nine steps a motor dealer must take to sell a used motor vehicle.
- The motor dealer must complete these forms before entering into any contract of sale:
- PAMD Form 37a - Important pre-purchase information cooling-off period (PDF, 220 KB)
- PAMD Form 38a-1 - Notice of statutory warranty (PDF, 198 KB)
- PAMD Form 38a-2 - Statutory warranty period (PDF, 186 KB).
Step 1 must be done before any contract of sale is entered into. If a deposit is paid, a receipt must be issued immediately which identifies the vehicle being bought.
- The motor dealer must complete a contract for sale (purchase contract) in writing. Each person noted as a buyer must receive a copy.
- The motor dealer must provide a dealer statement to the buyer, which records all details of the vehicle you are selling.
- The motor dealer must obtain a dealer statement from the seller (section 331 of Property Agents and Motor dealers Act 2000, Regulation 24) when purchasing a vehicle or accepting a trade-in.
- The motor dealer must give the buyer a receipt for money paid. In a consignment transaction, this needs to be on a trust account receipt.
- The motor dealer must complete PAMD Form 63 - Guarantee of title by a motor dealer (PDF, 185 KB), which guarantees title and identifies the person responsible for guaranteeing title. The form must be given to the buyer when they take ownership of the vehicle.
- The buyer must sign declarations and acknowledgements (PAMD Form 63 - Guarantee of title by a motor dealer). This acknowledges that the buyer received the declaration by the motor dealer of guarantee of clear title. This must happen when the customer buys the vehicle.
- The motor dealer must explain to the buyer that to get the one business day cooling-off period, they must leave the vehicle at the dealer's premises. They cannot take the car until the end of the next business day. They may take the vehicle only for a vehicle inspection or test drive without affecting their cooling-off rights. When the cooling-off period ends, the customer takes delivery of the vehicle. Otherwise the buyer must give the dealer written notice that they are not proceeding with the purchase.
- The motor dealer must tell the buyer, and have the buyer sign an acknowledgement, if the motor vehicle:
- is unregistered and was written off. However, if the motor vehicle is registered, the motor dealer does not have to tell the buyer that it was once written off
- is a statutory write-off and can not be registered for road use
- has been damaged. This includes registered or unregistered vehicles.
Vehicles offered for sale must clearly display a current road worthy/safety certificate. For more information on safety certificates, visit the Department of Transport and Main Roads website.
Last reviewed 30/01/2012