This update provides important information that all motor vehicle traders and their sales and customer support teams should be aware of. No images? Click here February 2021We hope you’ve had a good start to 2021 and are looking forward to a successful year ahead. This month we bring you a few helpful trade reminders, an invitation to a safety rating webinar as well as news about new online tools available to consumers and a rule change for overseas driver licences. What you say about a vehicle's year must be accurateThe Commerce Commission reminds motor vehicle dealers to ensure they are meeting their legal obligations. When advertising a vehicle for sale, ensure that you always accurately describe the vehicle’s features, condition and history, including the year of the vehicle. Consumer Information Standards (Used Motor Vehicles) Regulations 2008 - Legislation New Zealand Schedule 2 - Information required to be typed or written upon consumer information notice - Legislation New Zealand What are the risks if I don't?There can be serious consequences for a business that a Court finds has breached the Fair Trading Act. Companies can be fined up to $600,000 for each breach and an individual up to $200,000. Where can I get further information?You and your staff can learn more about your compliance obligations in our handy tip sheet. Tips for motor vehicle dealers [PDF, 483 KB] - Commerce Commission New Zealand Summary of obligations
Vehicle Safety Ratings Industry webinarTo coincide with the launch of the latest Used Car Safety Ratings (UCSR) and Vehicle Safety Risk Ratings (VSRR), Waka Kotahi New Zealand Transport Agency is hosting an industry webinar with AutoTalk to discuss the importance of vehicle safety ratings in New Zealand. Fabian Marsh, Senior Road Safety Manager at Waka Kotahi, will explain why vehicle safety plays a crucial role in reducing the road toll, and how the industry plays an essential role in improving the safety ratings of our fleet. Special guest Stuart Newstead from the Vehicle Safety Research Group at Monash University will explain the difference between ANCAP, UCSR, and VSRR and how these ratings are calculated and applied across New Zealand and Australia. Temporary extension period for overseas driver licencesIn December 2020 a rule change came into effect providing a temporary extended period for driving on an overseas driver licence in New Zealand. This means some drivers can continue to use their overseas licence for up to a maximum of 24 months after their arrival into New Zealand. This change will expire on 31 March 2022 and the eligibility period will then revert to 12 months. While nothing changes for motor vehicle traders, you may notice more drivers using an overseas licence. It is important to make sure their overseas licence is valid. Some drivers converting their overseas licence to a New Zealand driver licence will only get a New Zealand licence after they’ve passed a theory test. This licence may include a supervisor condition on it which means they may only drive with a supervisor next to them in the front seat until they’ve passed the practical driving test. A sample of the back of a New Zealand licence with a supervisor condition is included below. This New Zealand licence usually over-rides the drivers’ overseas licence, however, the rules around who can still drive using an overseas licence while converting to a New Zealand licence have also temporarily changed. This means in some circumstances drivers can continue to drive on their overseas licence (without a supervisor) while converting to a New Zealand licence. For more information on the extension of overseas driver licences: Extension of overseas driver licences - Waka Kotahi New Zealand Transport Agency A new online tool to help consumers understand their rightsConsumer Protection has developed an online tool that helps consumers understand their rights and resolve issues after buying a car from private seller or those in trade. The Consumer Rights Finder for motor vehicle purchases answers questions on how to claim a repair, refund or replacement from a seller under the consumer laws. While the tool is aimed at consumers, it’s a helpful tool to remind those in the trade of their obligations under the Consumer Guarantees Act, the Fair Trading Act and Credit Contracts and Consumer Finance Act and provides guidance on how to work with consumers to solve post purchase issues. Consumer Rights Finder: After buying a car There is a duty to disclose if a vehicle has been written offThe Motor Vehicle Disputes Tribunal is continuing to see cases where damage history is not being adequately disclosed to prospective purchasers. We thought it would be helpful to provide guidance on seller obligations. When a vehicle has previously been written off for insurance purposes, the seller of the vehicle has a duty to tell a potential buyer this information. The fact a vehicle has previously been written off is important information for a potential buyer because it enables them to make an informed decision about the purchase. Vehicles that have been written off are often worth less because of the negative stigma associated with write offs, regardless of the reason for the write off or the extent of repairs. What write-off meansSaying a vehicle has been previously written off means it has previously been written off for insurance purposes. If an insurer believes a vehicle is damaged so badly that it is unsafe, and decides not to repair it, it must cancel the vehicle’s registration. When this happens, the vehicle has been “written off for insurance purposes”. How to disclose that a vehicle has been written offConsumer Information Notices (CINs) have a section for the trader to tick a box if the vehicle has been re-registered. However, if the vehicle’s registration was cancelled because the vehicle was written off, the trader must do more than ticking this box. The trader must clearly tell the potential buyer that the vehicle’s registration was cancelled by an insurance company and for what reason, e.g. collision damage. Traders should keep a record that they told the purchaser about the write off. What happens if you don’t disclose that a vehicle has been written offBeing silent and not telling a buyer that a vehicle was previously written off has been ruled by the Motor Vehicle Disputes Tribunal to be misleading and against the law. By not disclosing that a vehicle has been previously written off, you may be ordered to:
Note the above are just examples of orders the Motor Vehicle Disputes Tribunal may make. The Tribunal has wide discretionary powers when ordering remedies for this type of situation. |