Everyone loves a bargain - especially when it's well below market value. But when that bargain is a repairable write-off, it's important to understand the rules and risks associated with these vehicles.
Everyone loves a bargain - especially when it's well below market value. But when that bargain is a repairable write-off, it's important to understand the rules and risks associated with these vehicles.
It is legal for repairable write-offs to be re-registered and sold in Western Australia, provided these vehicles have passed a safety inspection. This is different to statutory write-offs which are severely damaged vehicles that can only be used for spare parts.
Motor vehicle dealers in Western Australia must disclose to prospective buyers whether a vehicle is recorded as a repairable write-off. They need to declare this using a specific form - called a Form 4 - which should be displayed in a position where it is clearly visible through the windscreen of every second-hand car they're selling or in the case of a motorcycle clearly visible to a person standing near the vehicle.
It's important to note that the rules for repairable write-offs do not apply to private car sales. There's a greater risk for buyers involved in private sales, compared to buying from a licenced dealer.
Repairable write-offs can be tempting - a decent car for thousands less than usual - but as with most things that look too good to be true, it's good to pause and take a closer look at what you're buying.
It's worth keeping in mind that insurance companies know when a vehicle has been deemed a repairable write-off because the VIN is listed on a register so you may struggle to get full insurance, or you may discover that the vehicle has a lower market value.
Every used car buyer has a right to know that the vehicle they have chosen is safe, reliable, and fit for purpose. Under the Australian Consumer Law (ACL), licensed dealers have several obligations including, making sure the car is of acceptable quality and will last a reasonable time. They also must not mislead you about the vehicle you're buying.
However, aside from those obligations, dealers generally do not have to give consumers details about the vehicle's service history so even though a damaged vehicle can be repaired, it may mean there could be other unknown issues.
We encourage consumers to do a $2 Personal Properties Securities Register (PPSR) search online which will reveal if a vehicle is recorded as a repairable write-off, has been stolen and is free of outstanding debts. You can do this check at www.ppsr.gov.au or call 1300 007 777.
To further protect against buying a lemon, Consumer Protection has an easy-to-follow used car buyer's checklist online - www.consumerprotection.wa.gov.au/publications/buying-car-buyers-checklist
Complaints about dealers suspected of not following the rules on repairable write-offs can be lodged on the Consumer Protection website - www.consumerprotection.wa.gov.au
