Motors Help & Further Information
Motors Help & Further Information

Information for Car Dealers about new component pricing laws

On 25 May 2009, new laws came into effect governing the way car manufacturers and dealers can advertise motor vehicle prices in Australia. Motor dealers must now specify a single, inclusive ‘drive away’ price in their advertising.  The changes are intended to make motor vehicle pricing more accurate and assist consumers in making informed decisions, giving the consumer an “apples to apples” comparison.

We recommend that all dealers review the ACCC’s ‘Pricing manual for the motor vehicle industry’ which provides detailed information regarding the new laws.

ANY DEALER LISTING ON EBAY MOTORS AFTER 25 MAY IS RESPONSIBLE FOR COMPLYING WITH THE NEW RULES BY DISPLAYING A SINGLE, TOTAL “DRIVE AWAY” PRICE.  IN ADDITION, DEALERS ARE RESPONSIBLE FOR UPDATING LISTINGS PUBLISHED PRIOR TO 25 MAY THAT MAY BE AFFECTED.

What are the new laws?

 Section 53C of the Trade Practices Act 1974 (Cth) (‘TPA’)was amended to require that businesses advertising the price of a motor vehicle display a single, total ’drive away’ price.  This price should be as it is able to be calculated at the time you list the motor vehicle on the site.

 Businesses that advertise a fixed price listing will need to have a “drive away” price that will usually (but not always) include:

  • Vehicle purchase price
  • Stamp duty
  • CTP (compulsory third party insurance)
  • Registration
  • Dealer Delivery Fee
  • Any other associated fees that can be calculated at that time

 Using component pricing is not prohibited, as long as the total price (‘drive away‘) is displayed in an equal, prominent manner.  It must be at least equally prominent to any other pricing component included in the listing.

  • If you are advertising a new vehicle and the single price includes less than 12 months registration, you should ensure the listing clearly and adequately informs consumers of this fact.
  • The listing should be clear and there should not be any potential to mislead or misrepresent the vehicle in any way.

Who is affected?

Businesses advertising or promoting a good or service will be affected.  If you are unsure as to whether or not you are covered by changes to the TPA we strongly recommend you seek independent legal advice to clarify your position.

How does this affect your eBay listing

Dealers must make sure that listings on eBay Motors comply with the recent amendments to the TPA, along with any other applicable laws.