What if Your Car Becomes a Lemon After You Buy It?
Now that the Motor Vehicle Sales Act has come into force, Supplier Information Notices (SINs) must now be displayed on all used motor vehicles being sold by motor vehicle traders. The new SINs replace the old window cards that appeared on vehicles. These new SINs give consumers better information about the used cars they are buying from motor vehicle traders.
Other provisions of the Act mean that:
- motor vehicle traders must register on the Motor Vehicle Traders Register - including car market operators and auctioneers, even if their business is transacted online;
- SINs must be displayed on all used vehicles for sale by a motor vehicle trader whether the trader is registered or not (and private sellers at car markets);
- notices make it easier for consumers to see whether a trader is registered or not;
- notices will also tell consumers if there is money owing on the vehicle and give them a summary of their rights as a buyer; and
- consumers will be able to check if traders are registered (or banned) through the online Motor Vehicle Traders Register that will be available free of charge 24 hours a day, seven days a week at the Motor Traders Register website.
But, what if something goes wrong with your vehicle after you've bought it?
The Motor Vehicle Disputes Tribunal (MVDT)
If you can't sort the problem out with the trader, you can now approach the MVDT directly - previously claims had to be filed through a Motor Vehicle Dealers Institute branch closest to the dealer. The MVDT can now also hear claims under a wider range of laws, including the Consumer Guarantees Act, Fair Trading Act, and Sale of Goods Act.
If you bought a vehicle from a registered motor vehicle trader on or after 15 December 2003, you can take a claim to this tribunal. You can even take a claim against a vehicle trader who is not registered, if you can show they were in the business of selling motor vehicles. Claims can now be heard for both new and used vehicles - previously the MVDT could only hear claims about used vehicles. The MVDT can hear claims up to $50,000.
You can take a claim to the MVDT for:
- quality issues and faults with the vehicle;
- misleading and deceptive conduct or false representations; and
- if you were sold a vehicle by an unregistered motor vehicle trader that was subject to an undisclosed security interest.
How Do You Make a Claim?
You can get claim forms from the MVDT. You can contact the MVDT by phone on 0800 FOR MVDT (0800 367 6838), write to PO Box 6848, Wellesley Street, Auckland, or visit Level 10, Auckland District Court Building, 3 Kingston Street, Auckland. You must complete and file the claim form with the MVDT together with a filing fee of $50. If you are unsure as to whether you can make a claim in the MVDT, contact the MVDT staff for information. Claims will be heard at a venue closest to the place where you bought your vehicle.
At the MVDT you can claim for:
- the MVDT to order that the trader repair your vehicle;
- the money you have paid or will need to pay someone else to repair your vehicle;
- a refund of all of the money you paid for the vehicle, if it is a serious fault or a serious false representation;
- compensation for the loss you have suffered as a result of the fault, the problem, or the false representations. This can be the cost of any repairs or any loss in the value of the vehicle (e.g., if the vehicle was represented as a 1998 model and you found out that it was actually a 1996 model); and
- any extra losses or costs to you that directly resulted from the problem with the vehicle (e.g., the cost of renting a vehicle or hiring taxis while your vehicle was being repaired).
To check your rights after you've bought a motor vehicle, take a look at the booklet "Back on the Right Road - Consumers' rights AFTER buying a motor vehicle". The booklet is available from your local Citizens Advice Bureau or visit www.consumeraffairs.govt.nz. For help preparing your claim, contact either your local Citizens Advice Bureau or Community Law Centre. The Ministry of Justice also has information on the MVDT available at www.justice.govt.nz |
Thanks to Ministry of Consumer Affairs
Contact for Enquiries
The Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 00 83 33
Fax: +64 4 894 0720
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