13 September 2023
Kia ora koutou,
Welcome to another edition of the Need to Know newsletter for 2023 – and a very warm welcome to our first-time readers!
If you are receiving this newsletter for the first time, it is because we have recently updated our privacy notice which means we can send this newsletter to all our registered traders.
We saw this as being an important value add for all our registered traders, so you can keep up to date with important information. You will receive a newsletter like this quarterly and each edition will contain important information and updates for you. If you don’t wish to receive this newsletter, you can unsubscribe at the bottom of this email.
In this month’s Need to Know update, we have included registration and complaints statistics for the 2022/23 financial year, which may be of interest to you. This year we have banned 27 traders and cancelled 5 registrations for failure to comply. Further details of these bans are explained below in this newsletter.
We have also included some important information about Consumer Information Notices and your obligations. I encourage you to have a read and familiarise yourself with the information to ensure you are compliant.
We hope you enjoy this edition of the newsletter.
Keep our standards high.
Ngā mihi nui,
Duncan Connor
Registrar of Motor Vehicle Traders
A year in numbers (2022–2023)
Registration and complaints statistics for 2022–2023 financial year. For more summary statistics visit our website.
Recent bans
In 2023, the Registrar has banned 9 persons and recorded a further 11 instances of non-compliance against traders who have failed to comply with an order of the Motor Vehicle Disputes Tribunal (MVDT). The Registrar has also cancelled two registrations due to persons being disqualified and imposed 2 bans to unregistered traders.
MVDT decision on rejecting vehicle
The Motor Vehicle Disputes Tribunal has recently released a decision where it was determined the trader took an unreasonable amount of time to repair relatively minor issues with a vehicle. The Tribunal allowed the customer to reject the vehicle, and the trader was ordered to refund the customer.
When vehicles and rain don’t mix
With the unprecedented rainfall so far in 2023, water damage to vehicles is on the increase. Water damage is most likely to occur when water rises to the door sill (the bottom of the door frame).
If you have your vehicles insured and they get flooded, contact your insurer immediately to arrange for your vehicles to be assessed.
If you don’t have insurance, it’s recommended you have a qualified automotive technician complete a thorough inspection of affected vehicles.
Unfortunately, drying out a vehicle (including stripping out carpets to dry) may not prevent damage from building over time. It’s often unseen damage that impacts the safety of the vehicle – to circuit boards, in wiring under the floor carpet, and on metal parts hidden under interior covers.
As a vehicle seller, you play an important role in keeping people safe on New Zealand roads.
For more guidance on what to do with water damaged vehicles, visit the Waka Kotahi website.
What should you display in the window?
If you are selling used motor vehicles, you must display a Consumer Information Notice (CIN). You can do this by attaching a copy of the CIN in the car window if you are selling at your premises or alongside the advert if you are selling online.
The Commerce Commission enforces the requirements relating to CINs and can investigate complaints. The Commerce Commission actively monitors compliance and recently visited dealers in Nelson and Blenheim to check that CINs were being displayed. Failure to display a CIN on a used motor vehicle is an infringement offence under the Fair Trading Act. The Commerce Commission can issue a fine for each offence or take you to court.
There are rules about how to display the CIN, as well as rules about giving a consumer a copy of the CIN if they agree to buy the used motor vehicle. Have a look at the FAQs on the Commerce Commission’s website and read the fact sheets that have been written to help motor vehicle dealers comply with the CIN requirements and with the Fair Trading Act.
Tips for motor vehicle dealers fact sheet – Commerce Commission
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