Illegal car dealer fined $8k

An unregistered motor-vehicle trader has been convicted for breaching the Motor Vehicle Sales Act (MVSA) 2003.

The sentence was handed down to Kahn David Ratcliffe, 45, in Taupo District Court last week and came following an investigation by the Ministry of Business, Innovation and Employment (MBIE).

“Ratcliffe sold 44 vehicles in a 12-month period – more than seven times the limit for unregistered individuals,” says Duncan Connor, registrar of motor-vehicle traders. “Individuals are able to sell up to six vehicles in a 12-month period without registering as a trader.”

The conviction came after Ratcliffe was charged on one count of dealing while being unregistered. He pleaded guilty and was subsequently sentenced to an $8,000 fine, and was ordered to pay $130 court costs and $400 solicitor’s costs.

Buyers aren’t protected when purchasing from unregistered motor-vehicle traders and could face significant financial losses if there are issues with what they purchase. Connor warns Facebook Marketplace is a common platform for unregistered traders to sell their vehicles.

“Consumers should take precautions when purchasing vehicles from people online,” he adds. “This may include organising a pre-purchase check and inspection on the vehicle to identify any mechanical issues or money owing.”

Consumers can verify whether the person they are buying from is registered by accessing the public register online at www.motortraders.govt.nz.

Registered motor-vehicle traders have been assessed by MBIE as being suitable to be registered and must comply with obligations under the MVSA, Consumer Guarantees Act and Fair Trading Act.

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 be fined up to $50,000 for an individual or $200,000 for a company.