Car seller complaints soar

Official complaints about motor vehicle retailers have skyrocketed 70 per cent since 2013, according to a report released by the Commerce Commission today. The 2016 Consumer Issues Report presents a picture of issues affecting New Zealand consumers. This is the second year the Commerce Commission has released the report publicly. “Consumers complain to the commission most about price (26 per cent), goods (23 per cent) and services (22 per cent),” commission chairman Mark Berry says. One-quarter of our Fair Trading Act complaints relate to just 21 traders.” While complaints about motor vehicle sales have increased, the industry is not the one most complained about. That wooden spoon goes to the telecommunications industry and domestic appliance retailers, who each represent nine per cent of complaints under the Fair Trading Act. Motor vehicles retailers represent six per cent, or 304, of the 5073 Fair Trading Act complaints. The increase in complaints about the car industry was driven by complaints of misrepresentations about the quality of vehicles sold, and the coverage of warranties and guarantees, the report says. About 85 per cent of the motor vehicle complaints related to non-Motor Trade Association members. The report also shows an issue with buying online: online trading generates about twice the level of complaints as purchases made in physical stores, and represents about a third of Fair Trading complaints. Credit-related complaints, made under the Credit Contract and Consumer Finance Act, were most often about finance companies (43 per cent). However, motor vehicle finance providers generated nine per cent of the 164 credit complaints. The report was produced by the Commerce Commission primarily as a planning tool, Dr Berry says. “However, we choose to share the report publicly as we believe the information is of wider interest and benefit to consumers, traders, advocates and community groups.”