Better dealer image from Act

Press, 9 October 1987, Page 33

Better dealer image from Act

A popular poster that circulated widely throughout the Western world a few years ago featured President Richard Nixon and a caption in bold type below his hardly flattering image which asked, “Would you buy a used car from this man?” That poster just about summed up the public’s opinion of car dealers, but fortunately their image is improving, thanks to the formation of the Licensed Motor Vehicle Dealers’ Institute, a body set up under the Motor Vehicle Dealers’ Act, 1975. The popular conception of this act is that it was passed purely and simply for the protection of used car buyers. In fact, every dealer in vehicles, used or

new, must be a member of the L.M.V.D.1., as it is commonly known. To become a licensed motor vehicle dealer is not just a matter of having a signed application form rubber-stamped. Each application is carefully scrutinised by a registration board, which is chaired by a Queen’s Counsel, and the background of each applicant is thoroughly investigated, because the registration board must satisfy itself that an applicant is a fit and proper person to carry on the business of a motor vehicle dealer. Implicit in the board’s investigation is that the applicant has the resources and the ability to participate in or conduct an

enterprise in a completely professional manner. Thus it will be seen that the Motor Vehicle Dealers Act, 1975, was designed not only to protect the buyer but also the dealer. Members of the institute contribute to a fidelity fund which is used to settle the legal claims of buyers in instances when dealers default, so the protection afforded a buyer is very comprehensive. The institute also has the machinery to discipline its own members, if the need should arise. But, basically, the greatest volume of activity stems from buyers who, for one reason or another,

feel that they have been unfairly treated by dealers. Many of the complaints received by the institute are, in fact, unfounded, but all are thoroughly investigated in the interests of good public relations. A car-buyer who believes a legitimate complaint could be laid against a dealer from whom a vehicle has been bought should, in the first instance, approach the dealer in an effort to have the complaint remedied on a one-to-one basis. If the matter is incapable of reconciliation, it should be referred to the branch secretary who will, in turn, refer the matter to a chosen mem-

ber of the institute for further investigation. Each region of the institute has its own procedure from then on, but the Canterbury region, in which there are nearly 300 licensed dealers, tends to deal with complaints in an informal manner, as far as humanly possible, according to the secretary, Mr A. J. Sheard. In the experience of the region, an informal approach generally leads to more amicable settlements than a more formal approach, although Mr Sheard freely acknowledges that the approach to such matters by. one region might nbt be such a satisfactory solution in

others, because of such factors as population, the number of dealers in the region, and so on.' However, in the experience of the Canterbury region, relationships between the car-buying public and the dealers are generally harmonious. Although, like all laws, the Motor Vehicle Dealers’ Act, 1975, and its amendments has some weaker points, they are being strengthened as they emerge and there can be little doubt that the act has benefited vehicle buyers and improved the public’s estimation of dealers, as well as having improved the dealers’ lot as well.