A licensed motor dealer is required to meet a number of obligations when advertising for the sale of vehicles. These obligations are as follows:

• A dealer is not permitted to advertise that a minimum trade in allowance will be given in relation to the sale of a motor vehicle.
• A dealer is not permitted to advertise that the price of a second hand or demonstrator vehicle is reduced by a specified amount unless the price it was reduced from is also stated.
• A dealer is not permitted to advertise that a new vehicle is reduced in price unless the manufacturers' recommended price is also stated.
• The term 'on road costs' is prohibited, the ad must state either:
  • cash price plus statutory charges and dealer delivery charges of (the amount) or
  • total amount (drive away).

The following applies to the print media only. The dealer must include:

• the name of the dealership
• the number of the licence
• the telephone number for place of business.

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The Motor Traders Association Code of Ethics, Section F (b) (vii) states that an MTA licensed dealer will not offer in an advertisement any free gifts or substantially discounted goods (such as television receivers, videos, or other goods or holiday trips or the like not related directly to the supply of motor vehicles) which are intended to or could act as an inducement to a prospective purchaser of motor vehicles from that dealer.

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There is no obligation to use the dealer’s finance or insurance. Before a dealer offers you finance, compare the rates banks, credit unions and finance companies are offering - it could end up saving a great deal of money. If the vehicle insurance is added to the loan, be aware that interest will be paid on the insurance costs as well.

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A licensed motor dealer cannot publish or be responsible for any advertisement that specifies or implies:

• that a minimum trade-in allowance will be made in relation to a motor vehicle offered for sale by the dealer
• that the price of a second-hand or demonstrator motor vehicle offered for sale by the dealer has been reduced by a specified amount or proportion, or from a specified amount, unless the advertisement also specifies the cash price of the motor vehicle or
• that the price of a new motor vehicle offered for sale by the dealer has been reduced by a specified amount or proportion, or from a specified amount, unless the advertisement also specifies that the reduction is related to the manufacturers recommended price.

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From time to time a manufacturer may advertise a recall on a particular vehicle if there is an inherent defect in the vehicle. This recall is usually performed by contacting the known owners of the vehicle and also advertising in major newspapers around Australia.

It should be noted that Federal Treasury can provide information regarding vehicle recall notices. Visit www.recalls.gov.au for the latest information.

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