The Law Handbook 2024

Chapter 6.7: Buying a car 639 compensation from the Motor Car Traders’ Guarantee Fund (s 76) (see ‘Motor Car Traders’ Guarantee Fund’, above). However, this claim cannot be made until any section 45 rescission application has been heard and determined by the Magistrates’ Court or VCAT (s 45(5)). Prescribed particulars You can rescind a car sale contract if it does not contain the prescribed particulars (s 45 MCT Act). You can also withdraw from the contract if it does not comply with section 41 (used cars) or section 42 (new cars) (s 88B). New cars A contract for the purchase of a new car (where the seller is not a lender and the purchaser is not a car trader or special trader) must contain the following particulars (s 42 MCT Act; reg 24 sch 3 MCT Regulations; penalty: 20 pu): • the car trader’s name or the name of the car trader’s employee who negotiated the deal; • the car trader’s licence number; • a description of the car; • the vehicle identification number (if known); • the price and other charges to be paid; • the time and manner in which these payments are to be made; • the value allowed for trade-in (if applicable); • the serial number of the agreement. The car trader must give the purchaser a copy of the contract at the time of the sale (s 83A, 83C MCT Act; penalty: 50 pu). Used cars A contract for the purchase of a used car (where the seller is not a lender and the purchaser is not a car trader or special trader) must contain the following particulars (s 41 MCT Act; reg 23 sch 2 MCT Regulations): • the car trader’s name or the name of the car trader’s employee who negotiated the deal; • the car trader’s licence number; • a description of the car; • the registration number of the car (if registered); • if not registered, the car’s vehicle identification number – if this is not reasonably ascertainable, any other number identifying the car; • the price and other charges to be paid; • the time and manner in which these payments are to be made; • the value allowed for trade-in (if applicable); • the distance travelled by the car as recorded on the odometer and whether the car trader believes this is true; and • the serial number of the agreement. The contract must also contain the specified terms and conditions and other information set out in schedule 2 of the MCT Regulations. You should carefully check the contract, as car traders often fail to properly complete contracts and one or more of the prescribed particulars may be wrong or missing. The car trader must give the purchaser a copy of the contract at the time of the sale (s 41(2) MCT Act; penalty: 20 pu; s 83A, 83C; penalty: 50 pu). Prescribed notice – used cars A used car (not a commercial, veteran, vintage, classic or historic car) that is offered for sale by a car trader must have a notice in the prescribed form (see reg 11 MCT Regulations) attached to it containing: • the name and business address of the owner of the car (usually the car trader); • the distance shown on the odometer when the car trader acquired the car; • the cash price of the car and the total price inclusive of all the fees (unless it is to be sold at auction); • the compliance date of the car; • the model designation (if any) of the car; • the registration number (if any) of the car; • the vehicle identification number or, if there is no vehicle identification number, another number identifying the car, such as a chassis or engine number; • the built date (if it appears) and the compliance date of the car; and • whether the car is on the written-off vehicle register. Upon sale, the car trader must get the purchaser to sign a copy of the notice and must retain the copy (s 52(6) MCT Act; penalty: 10 pu). The notice must not contain a false or misleading statement or representation (s 52; penalty: 10 pu). Section 45 of the MCT Act lets a purchaser rescind a contract if the car is substantially different from the car described in the notice.