Motor dealer advertising laws NSW

Advertisements about motor vehicles from motor dealers have certain obligations under:

• the Australian Consumer Law
• Motor Dealers and Repairers Act 2013
• Motor Dealers and Repairers Regulation 2014.

The laws apply to advertising for:

• new vehicles
• second-hand vehicles
• demonstrator motor vehicles.

Advertising additional charges

Advertisements must clearly show if there are additional dealer’s charges or statutory charges on top of the purchase price for new vehicles.

Dealer charges refer to amounts other than the purchase price or statutory charges, which are payable to the dealer before or on delivery of the vehicle. The total cost of any additional dealer’s charges must be included in the advertisement.

Statutory charges do not need to specify their dollar amount and include:

• any tax or fee payable on registration or renewal of registration
• any duty charged or any premium and duty payable in respect of insurance issued or deemed to be issued under the Motor Accidents Compensation Act 1999.

Advertisements must not use the expression ‘on road costs’ or any other similar expression to describe statutory charges.

The advertised price must not be misleading or deceptive

The advertised price should not be misleading or deceptive.

Advertisements must specify the cash price of the vehicle when:

• the advertisement specifies or implies that the price of a second-hand or demonstrator vehicle has been reduced, or
• a reduction is related to the manufacturer’s recommended retail price.

Advertising of odometer reading

If an odometer reading is listed on an advertisement, it must be correct.

Advertising of damaged vehicles

Where damaged vehicles are offered (other than second-hand motor vehicles) for sale, advertisements must include a disclosure statement saying:

• that the vehicle has been damaged, and
• whether or not the damage has been repaired.

This message must be in writing and a size that is clearly legible.

Do not make false and misleading advertisements

Advertisements should not make statements or representations that are not true or likely to mislead or deceive. For example:

• when the term ‘drive away,’ or similar, is being used, the consumer should not expect to pay any more than the advertised price, and
• statements and/or pictures in advertisements should not mislead consumers as to the type or quality of the vehicle being offered.

Information NSW Fair Trading requires for motor dealer advertisements

NSW Fair Trading requires motor dealer advertisements to include:

• licensee’s name (individual, company or business name if listed on the licence) and telephone number
• registration number of second-hand vehicles or entry/stock number if unregistered (where a price is specified)
• dollar amount of dealer’s charges for new cars
• statement that government and statutory charges apply (if not included in the price) for new cars.