Pay-out ordered in Ferrari case
A prestigious car dealership in Auckland has been ordered to pay out $130,000 for failing to make good on a contract to import a Ferrari, a judge has ruled.
Martyn Thompson arranged to purchase an F12 Berlinetta from Continental Car Services, but the transaction failed.
He believed he had bought it from the dealership, which disputed this, according to the high-court judgement made by Justice Peter Churchman.
In June 2016, Thompson spoke to staff there and said an offer was made a month later.
According to the decision, the price was to be $480,000 or $130,000 plus his F458 Spider. Thompson opted for the trade-in and also selected specified modifications on the F12.
Later in July, Thompson was told he could get the vehicle as part of a purchase from Malaysia. He paid a $5,000 deposit the next day, although it was disputed what the money was for.
Continental subsequently emailed Thompson to inform it had pulled out of buying the vehicle because of communication issues and a fluctuating exchange rate with the euro. “We thought we might be able to supply the F12 on terms we discussed,” it said. “As a sign of good faith, a deposit was provided so we could pursue the opportunity.”
Thompson objected to this and wrote a letter of complaint to the chief executive of Ferrari Australasia to express his concern, the judgement states.
The reply he received stated the vehicle was sold locally in Malaysia. It transpired that the F12 was eventually bought by a car dealer in this country.
It was listed at $529,990 with the advertising that it was “the highest specified Ferrari F12 ever to hit the shores of New Zealand”.
Nothing came of Thompson’s complaint.
Continental disputed that a deal had been done because there was no signed vehicle offer and sale agreement (VOSA).
Justice Churchman preferred Thompson’s evidence the deal was done first and the VOSA was seen as a formality.
The judge stated that knowing Thompson had been led to believe the F12 was on its way to New Zealand, if the dealership wanted to make the agreement conditional it “should have used clear words explaining representations made to Thompson were untrue, neither Continental nor Ferrari Australasia owned the vehicle, and it was still in Malaysia”. It was eventually bought by a dealer in this country and was listed at $529,990.
The judge ordered Continental to pay $130,000 – the difference between the F12’s market value of $610,000 and the contract price. “Thompson lost his ability to purchase the F12 lower than its market value. He’s entitled to be compensated for that loss of a bargain.”
This story appeared first in this month's Autofile Magazine.
