Car Dealers:

Navado provides services in legal advice and representation in the car dealer industry for both car dealers themselves and for members of the public who purchase vehicles from dealerships. In the event that a claim of negligence is claimed against a car dealer, the various governing laws and agreements will need to be considered concurrently with the relevant facts of each case to determine the likelihood that the relevant duty of care has been breached.

Negligence claims in specific industries will have specific criteria and benchmarks of conduct. Determining the outcome of such claims can be “fact heavy” and will need careful and studied application of legal interpretation of relevant documents and industry standards.

A common issue that arises in professional negligence cases involves insurance companies who refuse to honour a policy due to the alleged fact that the person claiming on the policy has acted in a manner that falls under an exclusion.

• For Car Dealers

Car dealers who operate large scale or modest dealership businesses will undoubtedly enter into various agreements with different companies to facilitate their trade. This may include contracts with the car manufacturer (or manufacturers) which supply the vehicles and accessories for sale, to other entities which are involved in or connected to the success the business: the landlord on which the dealership is located and the insurance company which has provided any policy of cover for aspects of the business.

Of course, before any business can commence trading, the prospective car dealer will be required to obtain and comply with the relevant licensing requirements. These can be found on the Government Licensing Service website and the details of the process are outlined on the New South Wales Government Fair Trading website. Some of these licenses include:

• Motor Dealer License; and
• Auto-Dismantler License, in relation to:
  • Air bags;
  • Alloy Wheels;
  • Mag Wheels;
  • Boot Lids;
  • Bonnets;
  • Car Entertainment Systems such as tapes, CD, DVD and other video players and the like;
  • Chassis;
  • Major Body Sections;
  • Electronic Navigation Equipment;
  • Engines;
  • Engine Blocks;
  • Bumper Bars;
  • Apron Panels;
  • Gearboxes;
  • Transmissions;
  • Hatchback Doors;
  • Instrument Clusters;
  • Back Doors;
  • Front Doors;
  • Mudguards;
  • Wholesaler License; and
  • Motor Vehicle Parts Reconstructor License, in relation to:
    • Air Bags;
    • Engines;
    • Engine Blocks;
    • Gearboxes;
    • Transmissions;
    • Instrument Cluster;
    • Motor Vehicle Consultant License; and
    • Car Market Operator License.

Any claims for negligence, whether they are being made against the car dealer or whether they are being made by a car dealer against any of the entities the dealer has entered into a relationship with for the purposes of conducting the business, these claims will need to be assessed alongside the particular contractual and licensing requirements.

To establish negligence in the context of this industry, these requirements will likely need to be analysed along with adduced expert evidence which aims to illustrate the industry standards, whether or not and how they may have been breached. This is a complicated process which should be undertaken with the assistance of an experienced legal professional in the field.

• For Purchasers of Motor Vehicles

Stereotypically, car dealers do not have a very good popular reputation. Whether this reputation is well earned, is a matter for debate. To be fair, people looking to buy a motor vehicle on a tight budget may have to resort to purchasing a car which is second hand, and they may rely on the representations made to them by the car dealer during the sale and negotiation process. On the other hand, car dealers, being in the sales industry, will naturally wish to close a sale with a prospective customer.

It often happens that a purchaser may believe that he was not sold a vehicle which was up to the dealer’s alleged specifications or quality, or may have acted in a manner which was unprofessional in respect of the sale itself. Negligence claims against the car dealer may arise in this situation. As is the case with negligence claims in specific industries, the threshold of what is known as the “duty of care” will be determined according to the nature of the business in which the claim is being pursued.

Car Dealers will need to be licensed for conduct their business, and those licensing requirements may stipulate certain things that the business owner must do or avoid doing when operating his business (see the dropdown menu “For Car Dealers” for a list of these license and what they relate to). These are the kind of matters that a legal practitioner will need to investigate when considering the facts of each case in which a car purchaser can alleged that a dealer may have acted negligently.

If you require legal help or assistance with car dealers’ negligence matter you may wish to contact our firm by telelphone on (02) 9233 4048 or email us at info@navado.com.au and make an appointment to see one of our solicitors.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.