Auctioneers, Motor Dealers and Written-off Motor Vehicles

The Auction industry has another new form that agents should be aware of. I have selected what I believe to be a few of the relevant points from information supplied to us .

Under new legislation beginning on 30 September 2002, auctioneers, motor dealers and insurance companies have some obligations when it comes to written-off vehicles

Graham Eccles

• -auctioneers and motor dealers now need to advise buyers about written-off motor vehicles, in addition to water damaged motor vehicles.
The new legislation supports the operation of the Queensland Transport Written-Off Vehicle Register (WOVR) which records the details of vehicles that have been classified as written-off. Most Australian states and territories have a written-off vehicle register.
There are also changes to the statutory warranty provisions for written-off vehicles.
These changes are effected in the new Motor Vehicles Securities and Another Act Amendment 2002 (the Amending Act), which, in part, amends the Motor Vehicles Securities Act 1986 and the Property Agents and Motor Dealers Act 2000.

Written-Off Vehicle Register
Insurance companies and others are required to notify Queensland Transport in relation to motor vehicles that have been written-off in Queensland.

The WOVR database will record details of Queensland vehicles 15 years old and less that have been classified as written-off and will:

• enable Queensland Transport to minimise the opportunities for the illegal use of motor vehicle identification numbers in the re-birthing of stolen vehicles; and
• introduce certainty to consumers as to whether a written-off vehicle can be re-registered.
There are two types of write-offs:
Statutory write-off - The vehicle is too badly damaged to be safely repaired and is suitable only for use as parts or scrap. The vehicle's identification number (VIN)/chassis number will be recorded to identify the vehicle as a statutory write-off. This type of vehicle will never be able to be re-registered.
Auctioneers Selling Water-Damaged and Written-Off Vehicles
Under the amended Property Agents and Motor Dealers Act 2000, auctioneers are required to do the following.
Water-damaged vehicles
Immediately before the auction of a water-damaged motor vehicle, the auctioneer must announce that the vehicle is in fact water-damaged.
Written-off vehicles
Immediately before the auction of an unregistered written-off vehicle, the auctioneer must announce that the vehicle is in fact written-off and state -
re(a) if it is a repairable write-off , that the vehicle is a pairable write-off and must pass a written-off vehicle inspection under the Transport Operations (Road Use Management-Vehicle Registration) Regulation 1999 before it can be registered; or
(b) if it is a statutory write-off, that the vehicle cannot be registered.
When auctioning more than one repairable write-off in consecutive lots, the auctioneer may make a single announcement before the first vehicle is to be auctioned However, the auctioneer must identify all of the vehicles and make the same announcement as in (a) above.

Statutory Warranties
The statutory warranty provisions of the Property Agents and Motor Dealers Act 2000 do not apply to a written-off vehicle.
However, if a warranted vehicle was covered by a statutory warranty immediately before 30 September 2002, the vehicle does not stop being covered by the statutory warranty if on or after 30 September 2002 the vehicle becomes a written-off vehicle.
Repairable write-off - A repairable write-off has been determined as uneconomic to repair. The VIN /chassis number will be recorded to identify the vehicle as a repairable write-off. It will only be reregistered if it is repaired and passes a written-off vehicle inspection.

Should anyone require further information I would recommend contacting the office of fair trading direct.

Machinery Market
October Edition
By Graham Eccles
Principal
Qld Machinery Auction Services