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Hidden defects found in nearly one in three used cars

Published July 15, 2026 at 9:02 PM UTC

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A recent report has revealed that nearly one in three used vehicles sampled in Victoria were advertised online with odometers wound back by at least 25,000 kilometres. This widespread practice of odometer tampering misleads buyers about a vehicle's true condition and can significantly inflate its sale price. As more Victorians turn to online marketplaces to purchase second-hand cars, the prevalence of such deceptive practices has prompted a government response to protect consumers from financial harm.

The Victorian government has announced new legislative reforms aimed at curbing these activities. Under the proposed laws, Consumer Affairs Victoria will receive expanded powers to investigate, fine, and prosecute unlicensed traders who engage in fraudulent sales. The reforms also mandate that licensed traders must verify a vehicle's odometer reading before completing a sale, creating a higher standard of accountability in the second-hand market.

Beyond odometer tampering, the report highlighted that some unlicensed traders are buying vehicles in bulk at auctions and reselling them at a markup on social media platforms. These operators often bypass the licensing requirements that govern legitimate car dealers, leaving buyers with little recourse if a vehicle turns out to be defective. The government’s plan includes a targeted compliance blitz and a public awareness campaign to help families identify and avoid these risks.

For the average buyer, the findings underscore the importance of performing thorough due diligence before finalizing a purchase. Experts recommend checking a vehicle's history through official state services and obtaining a professional mechanical inspection. While these steps involve an upfront cost, they serve as a critical safeguard against purchasing a vehicle with significant hidden issues that could lead to costly repairs down the road.