Complaints about dealers rise
Three dealers were banned from the Motor Vehicles Traders Register (MVTR) in the year to the end of June 2025 and a further four had their registrations cancelled for failing to comply with the rules, a new report reveals.
The figures have been revealed by Duncan Connor, pictured, registrar of motor vehicle traders, after he released registration and complaints statistics for the 2024/25 financial year.
Those numbers for licensing outcomes compare with 11 dealers being banned in the previous year and six losing their registrations.
The MVTR adds it received 175 complaints about dealers during 2024/25, up from 108, and there were 2,633 registered traders as of the end of June this year.
During the financial year, 87 investigations into complaints were completed and four prosecutions laying charges were made.
As for non-compliance with Motor Vehicle Disputes Tribunal orders, the statistics show 37 complaints were received and 34 complaints were closed. These were up from 23 and 13 respectively.
A first breach for non-compliance was recorded against eight traders and three dealers were found to have made a second breach.
This was down from the year prior when there were 30 first breaches and nine second breaches.
Word of warning
Connor has also reminded dealers in an email newsletter about their responsibilities when displaying vehicles for sale.
It comes after Hamish Dormer-Rowe was fined $22,500 by the Hawera District Court for operating as a motor vehicle trader without registration, which breaches the Motor Vehicle Sales Act 2003.
An investigation found the Opunake man had displayed 72 vehicles for sale on Facebook Marketplace. Records from the NZTA show he also transferred ownership of 13 vehicles.
“This case shows that displaying a vehicle for sale, whether in person or online, is legally considered a sale under the act,” explains Connor.
“More people are now selling vehicles online. Regulators are using online listings to find unregistered traders and make sure they follow the rules.
“If you sell or advertise vehicles for sale, it’s important to understand your legal obligations and follow them.”
Connor also encourages automotive professionals to report unregistered vehicle traders to help “protect the integrity of the motor vehicle industry”.
Complaints about someone trading vehicles without being registered can be made online at the MVTR website.
Regulatory oversight
The NZTA and Connor have also recently reviewed and renewed an information-matching agreement under section 122 of the Motor Vehicle Sales Act 2003.
The registrar uses information provided under this agreement to identify individuals and companies who transfer ownership of six or more vehicles in any 12-month period.
“This enables us to proactively address potential non-compliance with the registration requirements under the act in a timely manner,” adds Connor.
“In situations where non-compliance is identified we use a range of enforcement tools, including education and information letters when initially engaging with non-compliant traders.
“Where non-compliance persists other enforcement options such as prosecution may be considered.”
Anyone selling more than six vehicles in a year must be registered as a motor vehicle trader or risk facing penalties of up to $50,000 for individuals and $200,000 for companies.
