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Title page 1
Contents 3
Acknowledgment of country 2
Shortened terms 4
Introduction 5
The ACCC and the Australian Consumer Law 6
Methodology 6
The regulation of second-hand car sales in Australia 7
Licensed dealers 7
Private sellers 13
Auctions 14
Consumer credit 14
Issue 1: Supply of poor quality second-hand cars 15
Car failures experienced shortly after purchase 15
Interstate movement of poor quality second-hand cars 16
Representations about the suitability, uses, performance characteristics and history of second-hand cars 16
Regulatory action to address the issue 19
Issue 2: Unlicensed second-hand car sales 22
Private sales market 22
Issues identified in the private sales market 22
Regulatory action to address the issue 24
Issue 3: Inadequate dealer remedies 26
Issues identified regarding dealer remedies 26
Structural barriers to remedies 30
Regulatory action to address the issue 31
Issue 4: Poor quality extended warranties 34
Extended warranties and their regulation 35
Issues raised regarding extended warranties 35
Regulatory action to address the issue 38
Issue 5: Inappropriate provision of car finance 39
Types of car finance and their regulation 39
Issues identified regarding the provision of car finance 42
Regulatory action to address the issue 47
Tables 8
Table 1. Second-hand cars covered by state and territory statutory warranties 8
Table 2. State and territory statutory warranty coverage periods 8
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