Second-Hand Motor Vehicles

The Hon. G.A. KANDELAARS (16:55): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers a question about recent crackdowns on second-hand car dealers.

Leave granted.

The Hon. G.A. KANDELAARS: A car's odometer provides consumers with information that may assist them with the purchase of a vehicle. Can the minister please update the chamber on recent Consumer and Business Services actions jointly with the South Australia Police into second-hand vehicles?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (16:56): I thank the honourable member for his most important question and his keen interest in these important consumer matters. I am pleased to advise members regarding two recent crackdowns, conducted jointly by Consumer and Business Services officers and police, relating to second-hand car dealers. I am advised that police raided six properties in Adelaide as a result of the criminal investigation, in conjunction with Consumer and Business Services, which began in February. This resulted in South Australia Police arresting five men and seizing 23 vehicles alleged to be in connection with an investigation into the winding back of odometers in second-hand cars.

This practice is carried out in order to deceive purchasers, consumers, about a vehicle's true mileage and value in order to obtain increased profits. A second crackdown has also been conducted on the sale of unsafe vehicles and questionable second-hand car sales practices in another operation. Last month over 100 cars were inspected by officers from Consumer and Business Services and police for compliance with the Second-Hand Vehicle Dealers Act 1995 and Road Traffic Act 1961.

During this operation 13 cars were detected with major defects at two second-hand car yards. These defects related primarily to tyres and brakes. I am advised that all defected vehicles have since been repaired or removed from sale. Both of these joint operations act as a warning to second-hand car dealers who may be ripping off consumers with an unfair deal or unsafe products. Vehicles are a significant and expensive purchase for consumers, and the law puts in place measures to ensure consumers can make a purchase with confidence.

These operations also demonstrated the effective collaboration that occurs in government. Consumer and Business Services collaborate with the commonwealth, state and local governments to ensure that consumers are protected, and a fair marketplace is maintained. If people want more information and advice on odometer fraud, or on consumer rights generally, business obligations in relation to second-hand vehicles, it is available through Consumer and Business Services. There is a phone number and also the website.