Car clocked by 130,000km

The buyer of a used-imported car discovered that its odometer had been wound back by about 134,000km after its engine failed.

The car broke down when its odometer read 50,000km, but the consumer later found out it had done almost 184,000km.

The purchaser, Freya Fu, then discovered the odo had been tampered with and was left $17,000 out of pocket because the trader went into liquidation.

She bought the 2012 Subaru XV on October 7, 2022. Less than one year and 6,000km later, the SUV had significant engine and air-conditioning problems. Fu took it to mechanics, who confirmed the engine needed replacing. 

She then started to question what was on the odometer and obtained the recorded mileage for the car from Singapore where it was imported from. She found when the XV had last been serviced in August 2021, there was already 183,993km on the clock.

Fu told the NZ Herald that she spoke to the owner of the trader – 465 Motors Ltd in Auckland – and sent in evidence of the tampered odometer. 

She said she was promised a refund. Shortly afterwards, she discovered the business was in liquidation. The Companies Office website shows the business was put into liquidation on October 30, 2023.

Liquidator Paul Vlasic, of Rogers Reidy, told the Herald there are no funds available in the company’s current accounts and confirms a shareholder of 465 Motors put the business into voluntary liquidation.

Fu threatened to take 465 Motors to the Motor Vehicle Disputes Tribunal (MVDT), but was told it couldn’t take the case because the company was in liquidation.

Abby Damen, of Consumer NZ, told the Herald: “Unfortunately, if the company has gone into liquidation, it’s bad news for customers – there’s not much you can do.

“If the purchaser used a credit or debit card to purchase the car, they could try talking to their bank about getting a charge-back. They should also contact the liquidator to register a claim.”

465 Motors had previously been taken to the MVDT for selling a car that had its odo wound back. In May 2022, an Aucklander bought a Volkswagen Beetle for $12,995 and its odometer read 45,600km. 

When faults appeared, she got a report from Volkswagen in Singapore and found its last odo reading in 2021 was at 129,905km.

In that case, the MVDT ruled that while 465 Motors was unaware of the odometer tampering, the “absence of knowledge provides no defence”. The tribunal found that the dealer had engaged in misleading conduct under the Fair Trading Act and ordered it to refund the purchase price.

Fu has been able to get a $1,000 charge-back from her bank and has applied to have the remaining $16,000 returned.