A new law regulating vehicle sales is good news for consumers and for dealers, the Motor Vehicle Dealers Institute (MVDI) says, according to a New Zealand Press Association (NZPA) report.
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MVDI membership services manager Stephen Wilson told NZPA it was positive that the Motor Vehicle Sales Bill, passed this week, made it compulsory for people selling cars for profit to be registered.
People found to be acting as motor vehicle traders without being registered can face stiff penalties under the law – including fines up to $50,000 for an individual and $200,000 for a company, NZPA said.
The bill also allows for unsuitable people to be banned from selling cars, it broadens Motor Vehicle Disputes Tribunal powers, provides a revised format for car window cards; and allows for stronger enforcement.
“It’s good for consumers,” Wilson told NZPA. “Not only will there be more traders for them to choose from but the remedies available to them will increase. Effectively those who want to trade in retail are going to be required to be registered.”
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By GlobalDataNZPA said Consumers Institute chief executive David Russell agreed the law would be good for consumers. He said it enabled consumers to better use the Consumers Guarantees Act and Fair Trading Act under the broadened scope of the disputes tribunal.
Russell was also pleased the Ministry of Economic Development would administer and enforce the Act, NZPA said.
“We think it’s far more appropriate to have a government agency administering the Act, rather than the industry self-regulating.”
Wilson told NZPA the law would also benefit traders as registration was to be simpler than the current licensing process – this was also likely to encourage people already selling cars for profit to start doing so legally. The law would free dealers from an ‘antiquated’ piece of legislation.
“It will allow them to trade in the 21st century. The current legislation doesn’t even let them sell on the Internet. It’s going to free our guys up to trade in today’s world.”
Wilson told NZPA the MVDI was unhappy with a levy proposed in the bill to fund the disputes tribunal, which he says will unfairly hit good traders who seldom have to use the body.
“The good car dealers will end up subsidising the bad car dealers… it should be more targeted,” he told NZPA.
NZPA said the ACT political party opposed the bill and was also critical of the levy. Transport spokeswoman Deborah Coddington said the industry had not been able to comment on the levy as it was added after the bill went to a select committee.
“Instead this stealth tax has been imposed on an industry already suffering from taxes, licensing and excessive regulation,” she said in a statement quoted by NZPA.
New Zealand First MP Peter Brown told NZPA the bill missed the mark and opened the door for the public to be “ripped off” by anyone who wanted to call themselves a motor vehicle dealer. “In many cases, it will be a case of buyer be very, very aware,” he said.
The Labour, National, Greens and United Future parties supported the bill, while New Zealand First and ACT opposed it.
New Zealand’s associate commerce minister Judith Tizard said the bill protected and promoted the interests of consumers, NZPA said.
