Backyard mechanics use Queensland’s lax laws to make fast cash while second-hand cars are scarce

Backyard dealers are sending potentially lethal written-off cars back on the road to cash in on a shortage of vehicles, motor lobby groups have warned.

Backyard operators are exploiting Queensland’s lax laws and privately selling unsafe vehicles to cash in on a shortage of used cars during the pandemic, motoring lobby groups have warned.

Motor Traders Association of Queensland (MTAQ) and the Royal Automobile Club of Queensland (RACQ) are both concerned repairable write-offs – vehicles that cost more to repair than they are worth – are being pushed out because second-hand cars are scarce.

NSW does not allow repairable write-offs, except for a few minor exemptions such as hail damage, to return to the road, while in Victoria written-off vehicles must undergo a thorough quality of repair inspection.

Queensland will tighten its regulations on repairable write-offs after 12,000 were registered in 2019 compared with 500 in NSW. Picture: Toby Zerna

In Queensland, however, a backyard mechanic requires only a roadworthy certificate and a vehicle ID check to register a written-off vehicle, with no physical inspection on the quality of the work or parts.

It’s meant vehicles deemed not worthy of being registered in southern states were pouring into Queensland, MTAQ chief executive Rod Camm said.

In 2019, 12,000 repairable write-offs were re-registered in Queensland compared with 500 in NSW, where the laws were extremely tight, and about 1500 to 2000 in Victoria, he said.

“If you ever going to sell a repairable write-off it is now,” Mr Camm told NCA NewsWire.

“There is a shortage, prices are up, and there is a high risk that consumers are going to buy a second-hand car that has been written off and is unsafe and they don’t know.

MTAQ chief executive Rod Camm says the sooner the laws on repairable write-offs are tightened the safer Queensland motorists will be. Picture: Supplied

“The sooner the government can shut this loophole down the better.”

The warning comes as second-hand dealers struggle to restock and trouble plagues the importation of new cars and parts during the coronavirus pandemic.

Under Queensland laws, licensed motor dealers must inform a buyer of a repairable write-off, but there was no onus on a private seller.

The state government is bringing in tighter controls next year, but in the meantime, written-off cars were being pushed out at a phenomenal rate, MTAQ used car chairman Peter Dever said.

“We have seen an increase in the number of vehicles coming in from Melbourne and Sydney and being repaired and sold privately, as second-hand dealers struggle for stock,” he said.

“As quick as they can find them they’re repairing them and selling them on Gumtree or Facebook marketplace.’

There have been instances where repairable write-offs have not even had the full quota of airbags, RACQ principal technical researcher Russell Manning said.

RACQ technical researcher Russell Manning says some cars have not had the full quota of airbags. Picture: Supplied

“We know of cases where vehicles have been repaired without the full complement of airbags for instance, and there’s also nothing in place in Queensland to stop someone using safety items like airbags or seat belts from a wreck to repair another vehicle,” Mr Manning said.

“Under the current arrangement, there’s also no way to identify if the repair has been performed correctly, particularly given the person doing the safety check component isn’t required to have any knowledge of the body repair industry or its processes.”

The state government has set up a parliamentary committee to help shape the new laws.

During last month’s hearing, chair and Labor MP Shane King revealed he had repaired written-off vehicles.

“I understand that you have concerns about the unsafe return of repairable write-off vehicles to the road, with the inspection regime. Having declared that I have repaired a few repairable vehicles in the past, I am wondering what your concerns are?” he asked.

There was no suggestion Mr King had returned an unsafe vehicle to Queensland’s roads.

A Transport and Main Roads representative said very few repairable write-offs were involved in accidents.

“Written-off vehicles that are currently repaired and re-registered only amount to a minor percentage of all motor vehicles involved in a crash that result in an insurance claim,” they said.

Under the new Queensland’s Written Off Vehicle scheme, light vehicles considered uneconomical to be repaired will be deemed as statutory written-off vehicles.

Hail-damaged cars will be allowed on the road as part of the exemption for written-off vehicles when Queensland tightens its laws. Picture: Lachie Millard

Exemptions will include hail damage, similar to NSW.

“The experience in NSW that the number of written-off light vehicles eligible for re-registration in Queensland might drop by more than 80 per cent,” they said.

“Light vehicles deemed eligible for re-registration will also need to undertake a new quality of repair process.”

Mr Manning said anyone buying a second-hand car privately can check the Personal Properties Securities Register to determine if the vehicle is a repairable write-off.

“Increased scrutiny of repair quality and increased inspection cost is likely to become a disincentive to repairing these vehicles, and we expect the numbers of these vehicles being repaired to drop as a result once the legislation is brought in,” he said.

Originally published as Backyard mechanics use Queensland’s lax laws to make fast cash while second-hand cars are scarce