Motor vehicle glossary
Terms and definitions we use when talking about buying a vehicle and the consumer issues associated with it.
Breach: when a rule under a law has been broken – e.g. it is a breach of the Fair Trading Act for a trader to mislead you about the car’s age.
Compensation: money to put right a problem – e.g. “I am asking for $1,200 compensation from the seller for being misled about the condition of the car’s engine.”
Private seller: a consumer selling their own vehicle to another consumer.
Registered motor vehicle trader: includes car-yard traders, wholesalers, importers, auctioneers, and car market operators. The Motor Vehicle Sales Act requires all people who are in the business of selling motor vehicles to be registered.
Security interest: when a car is purchased on credit (using a loan or credit contract to pay for it), the finance company may register a security interest to show that they have a right to the car if money owed is not re-paid.
Security interests are registered on the PPSA:
Serious fault: this is a simplified way of explaining the term 'failure of substantial character' which is the wording used in the Act.