Unregistered trader fined $22.5k

An unregistered car dealer has been fined $22,500 after admitting breaking the Motor Vehicle Sales Act 2003.

Opunake-based Hamish Dormer-Rowe was handed the penalty by the Hāwera District Court on June 16 for selling 85 vehicles while being unregistered.

He pleaded guilty to two charges under sections 95 and 118 of the act and was also ordered to pay court costs and fees of $786.

The Ministry of Business, Innovation and Employment says Dormer-Rowe has never been registered as a motor vehicle trader. 

During the course of its investigation, it was found he had sold or displayed 72 vehicles on Facebook Marketplace for sale between 2022 and 2023. 

Data from the NZTA also showed Dormer-Rowe had transferred ownership of 13 vehicles, which meant under the law he was considered to have sold 85 units.

The act states individuals can sell up to six vehicles a year without being registered as a motor vehicle trader.

The legislation, which is designed to promote and protect the interest of consumers in relation to motor vehicle sales, also explains that sale includes advertising vehicles for sale.

Duncan Connor, registrar of motor vehicle traders, says through selling vehicles, including displaying them for sale while being unregistered, a person skips the obligations that registered traders must adhere to. 

For example, attaching to the vehicle consumer information about the vehicle, keeping any records of contract for sale, and producing certificates of registration on demand.

“Buyers are at greater risk purchasing from unregistered traders,” explains Connor. 

“If issues with their new vehicle become apparent, they may struggle to resolve their issue or secure a refund given they did not buy from a reputable source.

“Buying from an unregistered motor vehicle trader also means purchasers cannot resolve any issues via the Motor Vehicle Disputes Tribunal.

“It is important for individuals selling vehicles to note that displaying more than six motor vehicles for sale is also classified as a sale in accordance with the act and that engaging in such conduct may result in enforcement action.”

Connor adds that if someone is buying a car from a dealer, he recommends they check the Motor Vehicle Traders Register to find out if the trader is registered or banned.

Those who wish to continue trading vehicles, or who are selling or importing more than a certain number in a given time period, must register as a motor vehicle trader. 

This applies to individuals and companies, including overseas companies trading in New Zealand.