Wednesday, 05 July 2017 14:31

A “thorough audit” of West Australian car dealerships will be done by Consumer Protection WA after a Perth man was told he was liable for nearly $16,000 in damages for crashing a car on a test drive.

Test drive insurance processes across WA will be studied in coming months as a result of the incident, the West Australian reports.

Kim told 6PR’s Morning Show earlier this month her son Brad had been planning on making the $3500 purchase from a local car dealership when he was involved in the accident.

“He asked if the car was insured and he was told yes,” she says.

“During the test drive he had an accident, he went through a give way sign and because the brakes didn’t work so well, he cleaned up another car.”

Her son was towed back to the dealership, where the salesperson informed him the car had only been insured with compulsory third party insurance and he would be fully liable for the accident.

Kim and her son contacted Consumer Protection WA for information regarding the issue, and were shocked to find while WA car yards are bound by the regulatory requirements set out in the Motor Vehicle Dealers (Sales) Regulations 1974 act, business owners are not required to take out insurance to cover consumers on test drives.

Consumer Protection WA’s Lanie Chopping told 6PR the organisation had started an investigation after it learned the man intending to sell the vehicle had since claimed the transaction was a “private sale” – despite the test drive occurring at his Bayswater business premises.

“We’re going to have a hard look at that, because motor vehicle dealers selling from their premises but then claiming that it’s a private sale – how is the consumer meant to know that?” she says.

“Like most people, it would have been assumed – it’s common sense that you’re not going to let someone take something of yours out onto the road unless you’ve actually got it insured.

“Otherwise you’re putting yourself in a very risky position, not to mention your customers are put in a very risky position.”

Chopping says a “thorough audit” will be done on test drive insurance processes across WA in coming months as a result of the incident.

“We have actually instituted a process now where all our guys who are out there doing inspections of dealerships [will be asking the] number one question: do you have insurance and processes in place in relation to test driving?

“If you don’t, then we’re having a good hard talk to them about the fact that [dealers] should not be allowing people to take vehicles for test drives, because they’re putting everybody at risk,” she says.

“That is now being rolled out across Western Australia.”

Kim says she has also contacted WA transport minister Rita Saffioti and premier Mark McGowan regarding a possible change to dealership insurance regulations.

Got Questions?

For more information about how you can manage test drives contact Tony Bradshaw at the MTA WA call 9233 9800 or email This email address is being protected from spambots. You need JavaScript enabled to view it. 

Source: www.autotalk.com.au, 26 June 2017

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