Component pricing and advertising

From May 25 2009, under an enforceable ruling from the ACCC, new, used and used demonstrator cars and motorcycles sold in Australia will have to clearly display the 'drive-away' price of vehicles advertised and on display.

Under s. 53C, the single price is the total minimum price a consumer needs to pay to obtain the relevant product or service. For the motor vehicle industry, it will generally be the dollar amount the consumer must pay to take ownership of the vehicle, which can be calculated by adding up all components that are quantifiable at the time the representation is made. These include a charge payable by a consumer to purchase the vehicle and any tax, duty, fee, levy or charge for the consumer to supply.

Ride Away No More to Pay (IGC)

IGC includes government costs borne by the consumer, such as stamp duty.

Excludes Govternment Charges (EGC)

EGC includes the price of the motorcycle, GST, dealer delivery (for brand new motorcycles in stock) and motorbike or accessory options and accessories. It may also include any known incentives offered by the dealer. EGC excludes stamp duty and other government charges.

If a tax, fee, levy or charge is not collected by a dealer but instead is paid by the consumer to a relevant authority, that tax, fee, levy or charge is not a component for the dealer's selling price.

The component costs of a motor vehicle may vary between geographic regions or by the class of consumer who purchases the vehicle. How should the single price be calculated?

The components of a single price should be calculated on the basis of that which applies to a typical or average consumer, without any concessions or discounts. The price provided in a particular region/state should be calculated as it applies to that geographic location.

Private seller

A private seller is a person who lists a motorcycle and is not a Licensed Dealer. A private seller is not required to stipulate government charges such as stamp duty, registration and transfer fees in their selling price as the private seller is not considered to be in trade or commerce for the purposes of the Trade Practices Act.

More Information
Component pricing and motor vehicle advertising
Component pricing and motor vehicle advertising - FAQ's

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