Education and prosecution fuels car trader compliance

29 April 2015

Education and prosecution fuels motor vehicle trader compliance

A targeted education campaign coupled with a threat of prosecution has seen a sharp increase in the number of motor vehicle traders registering.

Under the Motor Vehicle Sales Act 2003 (MVSA), any person who carries on the business of motor vehicle trading must be registered.

Stephen O’Brien, the Registrar of Motor Vehicle Traders, within the Ministry of Business, Innovation & Employment, says unregistered motor vehicle traders have been targeted since late 2013.

“The MVSA clearly sets the criteria for registration of those in the motor vehicle trade and there are certain obligations that motor vehicle traders must meet.”

“It is important that motor vehicle traders ensure their correct details are maintained on the Motor Vehicle Traders Register and ensure they renew their registration in a timely manner.”

David Vinsen, Chief Executive of the Imported Motor Vehicle Industry Association and President of the Motor Vehicle Dealers Institute says he too has noticed an increase in compliance.

"We have noticed that more people are willing to comply with their registration obligations under the Motor Vehicle Sales Act 2003 and we attribute this to the salutary effect of the prosecutions conducted by the Registrar of Motor Vehicle Traders against unregistered motor vehicle traders, and the education campaign the Registrar has carried out.”

“Unregistered traders are more likely to comply when they have their obligations pointed out to them, whether by way of letters sent by the Registrar, or as a result of the publicity surrounding the prosecutions of unregistered traders, or when traders are faced with the threat of prosecution.”

“We are now seeing registration under the Act becoming a part of normal business practice."

The increased compliance is reflected in the sharp increase in the number of registered motor vehicle dealers from 2544 in July 2013, to 3334 as of April 2015, an increase of some 30 per cent.

Find out more about the Motor Vehicle Traders Register here: http://www.motortraders.med.govt.nz/cms

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