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Ex-dealer cops $3.5k fine

Unregistered trader appears before court after falling foul of law by selling eight vehicles in 12 months.
Posted on 06 July, 2023
Ex-dealer cops $3.5k fine

A former registered dealer from the Bay of Plenty has been fined $3,500 after he was convicted of breaching the Motor Vehicle Sales Act (MVSA).

The Tauranga man was charged with one count of trading motor vehicles while being unregistered following a Ministry of Business, Innovation and Employment (MBIE) investigation.

He pleaded guilty and was subsequently sentenced at the Auckland District Court, where he was also ordered to pay $130 court costs.

Duncan Connor, registrar of motor-vehicle traders, says: “Having previously been a registered motor-vehicle trader, the defendant was aware that selling eight vehicles in 12 months while unregistered, breached the Motor Vehicle Sales Act.

“The risk is that consumers could face significant financial losses when purchasing from an unregistered motor-vehicle trader as they are not subject to the checks that apply to those who are registered.

“I would strongly encourage anyone considering purchasing a car to check whether the person or company they are purchasing from is a registered motor-vehicle trader on the online register.”

Under section 95 of the MVSA it is an offence to sell more than six vehicles in a 12-month period. Those found breaking the law can face fines of up to $50,000 for an individual or $200,000 for a company.

Details on whether people need to become a registered motor-vehicle trader can be found here: https://motortraders.mbie.govt.nz/becoming-a-registered-trader/who-needs-to-register/.

Consumers can also check whether the person they are purchasing from is a registered trader by accessing the public register at https://www.motortraders.govt.nz/.