Used motor vehicles

The CIN provides consumers with unique information about the used motor vehicle and the trader so that they can make better informed purchasing decisions. This is a standard format notice that must include certain information.

What is the consumer information standard for used motor vehicles?

What types of motor vehicles do the Regulations apply to?

Only used motor vehicles are covered by the Regulations. A used motor vehicle is a motor vehicle that has at any time before being offered or displayed for sale, been registered or used for a purpose not connected with its manufacture or sale. A motor vehicle that has been used as a demonstration model is also considered a used motor vehicle.

The definition of motor vehicle is set out in the Motor Vehicle Sales Act 2003. Generally, the definition covers any road vehicle ordinarily acquired by consumers for personal, domestic or household use.

Who do the Regulations apply to?

Motor vehicle traders, whether or not the motor vehicle trader is acting as an agent for another person or through a car market operator or online.

A motor vehicle trader is any person who effectively operates a business that trades in used motor vehicles (whether or not they also have another business). This includes importers, wholesalers, car auctioneers and car consultants.

The Regulations do not apply to the sale of used motor vehicles from one motor vehicle trader to another, or from a motor vehicle trader to a licensed car wrecker.

Private sellers of used motor vehicles are not required to comply.

What are the rules?

You must ensure that all used motor vehicles have an accurate and complete CIN when displayed for sale.

The CIN must be:

• attached to the used motor vehicle in a prominent position
• clearly visible from the exterior of the motor vehicle
• on white paper or card on at least A4 size
• complete, clear and legible with the correct information
• updated to reflect any change as soon as practicable after change occurs.

You may use a name, logo, mark or design associated with your business, or any trade association you belong to, on the top margin of the CIN in a manner that does not detract from the contents of the CIN.

The CIN is not a marketing tool, it does not allow the listing of information about extras such as alloy wheels or a Bluetooth compatible stereo. If you want to provide additional information about the motor vehicle, you could do this on a separate sheet or card.

If the used motor vehicle is available for supply online, the CIN (or a link to the CIN) must be clearly and prominently displayed on the same webpage where the vehicle is listed for sale.

The required content of a CIN is available below.

What must I do with the CIN?

When a consumer agrees to buy the used motor vehicle, you must provide a copy of the CIN immediately before the sale, obtain a written acknowledgement that they have received a copy and sign the CIN to record you have supplied a copy.

You must keep a copy of the CIN and the buyer's acknowledgement for every used motor vehicle you sell for at least 6 years after the sale. You must also make copies available for inspection by the motor vehicle traders registrar, or a person acting on their behalf, at all reasonable times.

Car market operators

Car market operators must take reasonable steps to ensure a motor vehicle trader, offering or displaying a used motor vehicle for sale through the car market operator, completes and attaches a CIN. This may include providing the CIN form to be completed with instructions on how it is to be completed and displayed. Failure of the operator to do this is a breach of the Motor Vehicle Sales Act 2003.

Complying with the Regulations

1. It is your responsibility to ensure that the used motor vehicles you offer or display for sale have an accurate and complete CIN
2. If you sell or display a used motor vehicle for sale without a CIN, you will have breached the Fair Trading Act 1986 (Act). It is an offence under section 28 of the Act for motor vehicle traders to supply, offer to supply or advertise to supply any used motor vehicle if the Regulations are not complied with
3. You can access the Regulations (which contain a sample CIN), the Act and the Motor Vehicle Sales Act 2003 online. The information on these websites is free.

We actively enforce the Act, and may issue you with an infringement notice requiring payment of a fine of up to $1,000 if a CIN is not displayed. Alternatively, we may prosecute you in Court. Companies can be fined up to $30,000 for each breach of the Act. Individuals can be fined up to $10,000.

A tip sheet that sets out motor vehicle traders’ legal obligations when advertising and selling motor vehicles to consumers is available below.