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New regime for motor vehicle trading

New regime for motor vehicle trading

The Motor Vehicle Sales Bill, passed this morning in Parliament, heralds a new regime for motor vehicle trading, says Associate Commerce Minister Judith Tizard.

“The new legislation is an overdue reform of the Motor Vehicle Dealers Act 1975,” says Judith Tizard. “I anticipate it will come into force towards the end of this year.

“Since 1975, the way New Zealanders have gone about buying and selling motor vehicles has changed dramatically. The restrictions, costs and procedures of working within the 1975 Act have been considered too onerous by many in the motor vehicle business, resulting in unnecessary cost and significant illegal trading.

“As a result, many in the motor vehicle business have avoided their obligations, including those under consumer law. As Minister of Consumer Affairs, I am particularly pleased that the new legislation protects and promotes the interests of consumers when buying a motor vehicle.”

The legislation: Creates a new registration regime for persons involved in the business of motor vehicle trading; Allows for the removal of unsuitable participants; Revamps the Motor Vehicle Disputes Tribunal; Provides for car information through a revised window card; and Provides for much stronger enforcement, which will be undertaken by an enforcement team at the Ministry of Economic Development.

“We have had a great deal of consultation and input from stakeholders and experts, and this legislation has strong support from the motor vehicle industry who agree there should be protections for consumers and that bad players should be removed from the industry.

“I would particularly like to thank Paul Swain and former Commerce Select Committee Chair David Cunliffe for their work on the Bill, and United Future’s Paul Adams, who brought a willingness to share his motor vehicle trading experience with me in the course of consultations on this legislation.

“This legislation is a good example of the government working with industry and consumer groups to provide modern, straightforward legislation,” says Judith Tizard. “It will lead to a simpler system, helping consumers make more informed decisions and business to run more efficiently which, in turn, helps the economy work better.”

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