Research shows that unlicensed motor car traders are taking advantage of Victorians buying used cars online.

Consumer Affairs Victoria’s Unlicensed Motor Car Trading in Victoria report highlights concerning advertising and sales of cars on online marketplaces.

The research found unlicensed traders are buying large volumes of used vehicles through auction houses, then reselling them on social media at inflated prices – often posing as private sellers.

Buying privately can appear cheaper than purchasing from a licensed dealer but can come at a cost, including:

• no statutory warranty
• no cooling off period
• no vehicle history guarantee.

Almost one third of the vehicles sampled in our investigation had odometer readings advertised at least 25,000 km less than when the car was sold at auction.

The Victorian Government is proposing new reforms to strengthen consumer protections against unlicensed trading and modernise the regulatory framework for motor car trading across the state.

Consumer Affairs Victoria will also deliver an education campaign and conduct targeted compliance action as part of a statewide crackdown on unlicensed motor car trading.

Learn more about buying a used car.