OzCar Copped $50,000 Fine for High-Pressure Sales Tactics on September 24

NSW Fair Trading hit OzCar, one of Australia’s largest used-car dealerships, with a $50,000 maximum fine on September 23 for pressuring customers into contracts and stripping away cooling-off rights. Three company directors were each fined $11,000. The action follows an investigation uncovering a pattern of misconduct from 2023 to 2025 affecting customers across OzCar’s 16 dealerships nationwide.

What OzCar did wrong

Fair Trading found OzCar used preselected forms that waived customers’ cooling-off rights without proper consent. Buyers were rushed into signing contracts they did not understand, and staff failed to explain key terms to vulnerable consumers. The dealership sold vehicles that did not meet acceptable quality standards under Australian Consumer Law, despite claiming a 191-point inspection process.

The penalty and conditions imposed

The $50,000 fine is the maximum available under disciplinary action provisions. Directors Brett Anthony Dale, William James Keepkie, and John Startari each received $11,000 fines. No criminal charges were laid. Fair Trading applied strict conditions to OzCar’s motor dealers licence, including a ban on preselecting cooling-off waivers and a requirement that purchasers hand write acknowledgment of waiving their rights.

Customer complaints that triggered the action

The investigation unveiled cases where vehicles failed shortly after purchase despite OzCar’s claims of mechanical inspection. One buyer purchased a vehicle that suffered extensive mechanical failures. Fair Trading inspected the car and identified significant issues, forcing OzCar to repair it. A southwest Sydney mother of two reported ongoing faults with a $30,000 Hyundai Tucson, while a Melbourne couple’s financed MG entered limp mode on a freeway.

What happens next for buyers

OzCar must now ensure that defects affecting safety or reliability are fixed before sale and maintain written inspection and repair records for each vehicle. For 12 months, purchasers who waive cooling-off rights must hand write the statement: “I understand I am waiving my cooling off right” at signing. The dealership must provide signed copies of contracts to all buyers.

Final Thoughts

The fine sends a clear message that consumer protections are not optional in Australia’s used-car market. Buyers should always verify cooling-off rights in writing and seek independent vehicle inspections before purchase.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.