SA introduces toughest penalties in the country targeting dodgy car dealers

Buying a “lemon” may be a thing of the past as harsh new laws put dodgy car dealers in the crosshairs.

SA will introduce the nation’s toughest penalties for dodgy car dealers. Picture: Scott Radford-Chisholm.

Facebook Marketplace car dealers looking to take buyers for a ride will be met with the toughest penalties in the nation from July 1.

Under new reforms, dodgy vehicle dealers caught winding back an odometer will face a maximum penalty of $150,000 for a first or second offence and/or up to two years imprisonment for a third or subsequent offence.

This is a $140,000 increase from the previous penalty of $10,000.

The updated rules will target those working in car yards as well as backyard sellers looking to mislead motorists.

Consumer and Business Services will also crack down on unlicensed dealing, increasing penalties from $100,000 to $150,000 for a first or second offence.

A third or subsequent offence could see deceitful dealers land themselves a two year jail term or a further fine of $250,000 for an individual and $500,000 for a body corporate.

The changes are in response to an uptick in complaints about unlicensed selling and odometer tampering with cost-of-living pressures prompting more people to purchase vehicles second hand.

Online car sales on Facebook Marketplace have also been cause for concern in the industry with buyers being tricked by sellers winding back odometers – displaying fewer kilometres.

Consumer and Business Affairs Minister Andrea Michaels. Picture: Keryn Stevens.

“Purchasing a car is a significant investment and we don’t want to see people being ripped off or taken advantage of by being sold a lemon,” Minister for Consumer and Business Affairs, Andrea Michaels said.

In South Australia, individuals buying, selling or offering for sale four or more cars in the space of 12 months must have a licence.

All licensed dealers have the same legal obligations regardless of whether they are selling vehicles from a car yard or their home.

Originally published as SA introduces toughest penalties in the country targeting dodgy car dealers